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Entrepreneurs – How Much Does It Cost To Start A Business?
Written by: Lee ListerArticle Overview: You’ve got your business idea, think that you will be able to get a good loan and even have your business plan being written but…. The one big burning issue is – How much does it cost to start a business?
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Free Download - What Type of Business Should I Start? By Lee Lister |
Entrepreneurs – How Much Does It Cost To Start A Business?
You’ve got your business idea, think that you will be able to get a good loan and even have your business plan being written but…. The one big burning issue is – How much does it cost to start a business?
Well you first of all have to be realistic and understand that you are unlikely to make a profit within the first six months of business – so you should also budget for your first six months running costs. So here is your shopping list:
1) Purchase of lease/franchise/premises. This will include any Realtor fees, deposits and other legal expenses.
2) Cost of fit out and purchase of new equipment. This will include any work that needs to be done on your premises as well as any equipment you have to buy in order to start and run your business. Often you can lease equipment in order to mitigate high start up costs.
3) Six months worth of advertising and marketing. This will be particularly high at the start as you establish your business. Factor in some cold calling as well as a launch party or opening day.
4) Legal, licensing and banking costs. Your business will need to be set up correctly, licensed and have a good bank account. Sadly all of these require money. You may also need a payment processing service to use credit cards.
5) Staff costs for six months. Staff will be the basis of providing good service to your new customers. Make sure that you have enough money put aside to find them, train them and keep them!
6) Uniforms, office and marketing supplies, packaging etc. You will need to establish your brand. This means that your staff will need uniforms or at the least business cards and name tags. You will need brochures, adverts etc. If appropriate you will also need standardized packaging and documentation. Your office will also need office equipment and supplies. You should also budget for designing your logo, brochures and adverts if you cannot do this yourself.
7) Stock and supplies – to keep you going for six months.
8) Maintenance for six months – your equipment will also need to keep going for six months.
9) Any loans that you have will also have to be paid. Again look at least at six months or until you break even and can pay the loan.
10) Your salary for six months – lastly you will need to pay your own bills and maintain your family during this time. You should expect that for a short while your standard of living will go down.
Add this up and add 10% for contingency
Good luck
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Article Tags: brochures, business cards, business idea, business plan, credit cards, franchise, launch party, legal expenses, marketing supplies, name tags, opening day, payment processing, premises, processing service, realtor fees, running costs, shopping list, six months, staff costs, uniforms
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About the Author: Lee Lister RSS for Lee's articles - Visit Lee's website  From an early age she began an unparalleled journey through business consulting that continues to span across the UK, USA, Europe and Asia. She has consulted for a considerable number of companies all over the world. Specialising in business change management, start up consultancy and trouble shooting. Lee's experience in marketing and internet marketing is also keenly sought after. She is a prolific published writer of books, ebooks and articles and can easily be found on major search engine and Amazon. Her books include: FastTrack Bid Management, Proposal Writing For Smaller Businesses, How Much Does It Cost To Start A Business, Entrepreneur's Apprentice and a series of Start My New Business books that do as they say in the title! Her major web sites are: Click here to visit Lee's website   Can You Afford To Treat PQQs Lightly Entrepreneurs How Can You Start A Business During A Recession Investors in your Business 10 Things They Look for in a Business Plan The Bad Customer How Do You Recognize The Customer Who is Harming Your Business Strategic Planning Planning for Success using your Strategic Roadmap |
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