Are you busy putting together a business plan for your start-up? Are you anxious to get the ball rolling so you can finally see your dream come to fruition? Entrepreneurs tend to be the brave ones of the bunch, the ones who aren’t afraid of taking risks, who believe in their ideas and dreams, and are motivated to make things happen. But before you get too ahead of yourself in the process, there are some business start-up costs that you’ll have to include. Here’s a look at five that you should be aware of.
1. Borrowing Costs Have to Be Factored In
Because most people will require funds of some sort for the new business, you need to consider the cost of borrowing. Yes, you will pay back what you have borrowed, but what about the interest rates and fees? Ideally, you get a good deal, but this is something that you’ll need to work out and feel comfortable with the terms.
2. Get a Small Business Insurance Quote
Small business insurance will be essential for any start-up regardless of the industry or type of business. Business insurance is meant to protect your company financially should unforeseen issues arise. These issues can be so devastating that it bankrupts a company without the proper coverage. Because there are different types of small business insurance, and not every type may be applicable, it’s wise to get a small business insurance quote. Then, you can at least start to budget what it will cost and work that into the financial plan.
3. Renting or Leasing Workspace Is Often Necessary
Most businesses will need to rent or lease some workspace, whether a small office space or a large factory. Regardless of the company’s needs, this will need to be factored into the list of expenses. The larger the space you need, the more money it will be, but also the location will determine the price. Be sure to create a budget in advance to know what is affordable.
4. Invest In Supplies and Equipment
Along with the workspace, you will also need supplies and equipment that allow the company to do its job. You can rent/lease equipment in many cases, which can be a more budget-friendly option. It also ensures that you access the latest, most up-to-date equipment and can upgrade or trade it in at the end of the lease term.
5. What Does Your Marketing Plan Look Like?
Finally, be sure also to price out the marketing/advertising plan. As a new business, the chances are that the marketing budget will be tight, to say the least. Therefore, you’ll want to be sure you choose techniques that give you the best ROI (return on investment), which is often digital marketing.
By factoring in these costs, you’ll have a much clearer picture of the budget and how much is needed to start your company. You can never be too cautious with planning when it comes to costs.