- Business and Employment»
- Small Businesses & Entrepreneurs
Start up costs of a new business
Starting up a business what's involved?
Well if you have read my recent hub about starting up a new Business then you will know that is exactly that's what I have done. Now I'm only in to the third month of my business but i think i have more in the last 3 months than I have in the last 20 years of being employed.
Firstly the cost involved in starting up the business I was meticulous or so I thought in listing them all down too ascertain what the initial start up investment for the business would be, but three months down the line I have realised that I have significantly underestimated.
Now my underestimation is not poor planning on my part but the realisation that as i have tried to develop there have been additional things i have needed and hence adding a further burden on the company, that's not to say that the additional monies have been begrudgingly paid but seen as unforeseen future investment that i believe will only benefit my business as it grows. In fact its only now that i have just written out the last cheque for additional sums of money over and above the initial business start up costs that i am now relieved that i can now look at the balance sheet and start considering some wages.
Business start up
So what are these business start up costs?
Well of course all businesses are different and have different requirements but i can only comment on my business which is a security company that supplies and installs CCTV, Access Control and Intruder alarm systems, yes I know not the most glamorous of businesses but its what I know and happen to be pretty good at it even if I say so myself.
So to the Business Start up costs
- Company registration
- Public Liability Insurance
- Accountancy costs
- Mobile phone costs
- Office set up cost (Don't forget all the things that need to go in the office PC, Printer, Filing Cabinet etc)
- Business Cards
- Vehicle sign writing
- Health and Safety
- Work Wear
- A Marketing Budget
These are just some of the items that are required and although I have not put costings against each of these items all because they will obviously vary but its quite plain to see that its a considerable cost.
But the most important thing I believe you need to consider and the most valuable piece of advice I would give to anyone considering starting in business and the costs involved is to think about this.
All of the above items which have a relative cost against them have something else attached to them and that is TIME.
And of course time costs money and with all the things you have set up there is the associated time that goes with it. You would like to think that sorting out some Business insurance would be straight forward and would be sorted relatively quickly b ut as a business person or anyone else for that matter you want value for money so you shop around and you wait for quotes to come through then you wait and then you wait some more i swear i could of sold hundreds of policies in the time it took for insurance companies to get back to me, but the point is again TIME.
So the point is that I would say include in your business budget the wages or lack of during the start up business period ideally I would say it would be best to have at least 6 months salary behind you that way you have a little cushion and don't feel too pressured.
Starting a new business
- Starting your own business for the first time
Starting my new business how do i best market it for the best future returns please help hubbers