The decision to start a business is exhilarating and exciting, especially as you draft your business plan and start to see your idea become something tangible. Then you have to face one of the most difficult and daunting tasks when writing your business: estimating the startup costs for your business. It’s a task that can be stressful, but it doesn’t have to be a painful process. Although every business is different and your industry will have unique costs, there are a lot of ways you can estimate realistic costs for your startup, especially if you partner with experienced venture capital firms that want to see your business succeed. Partnerships with experienced firms, such as HJR Global, are vital in the early steps when creating your business. As you prepare to write your business plan, here are some common initial costs as well as ways to estimate the startup costs for your business.
Common Business Expenses
There are a number of costs that you have to think about as you bring your business to life. Some of them are pretty obvious costs, while others are unexpected, but generally these things are what almost any business owner needs to think about and your business is likely no exception.
- Research – Even if you are an expert in your field, you have to make sure that your business is viable and that there is a need in your market.
- Equipment – Depending on your business, you will need some equipment to complete your tasks. Perhaps you just need a laptop or perhaps you need thousands of dollars in construction equipment, but it needs to be part of your startup cost plan.
- Space – Where is your business going to operate? Are you going to try to rent office space or try to save costs and operate out of your home or a coworking space? Where you will be operating should be estimated in your startup costs.
- Payroll – If you have any employees when you start your business, you need to pay them. Even if you are the only person on your payroll, you still have to pay yourself. This is a business cost that you should include in your startup plan.
- Web Presence – You won’t find this one on all the lists, but it’s one of the most important things you can invest in for your business in the digital age. Choosing not to have a web presence could be detrimental to your business, so include it in your startup costs.
- Marketing/Advertising – Marketing and advertising are important considerations when it comes to your startup costs. After all, how are you going to get the word out about your business? It might only be 10% of your costs, but it’s still a cost for your business.
How To Create A Realistic Estimate
Creating a realistic estimate for your business startup costs might seem like a daunting process, but living in the digital age has made the process of starting a business easier than it ever has been. This is mainly due to the amount of resources that you have available instantly. For example, the Small Business Association, or SBA, has a myriad of resources that help you calculate your business startup costs, including a neat startup cost worksheet. You can also use apps like Gusto to create a realistic budget and Enloop to help you write a business plan.
Furthermore, you can seek out the help of experienced venture capital investment firms like HJR Global to help you get off the ground. HJR Global’s team can help you craft your plan, find funding and get started on your dreams. Contact our team today to see what we can do for you.