Starting a business is exciting, even fun. But dreamers who are just starting should not forget the business of starting a business. Of course, it is nice to choose a modern logo, the purpose of the balance sheet, a team of professional people to support your vision, and rent a nice office. Don’t be drawn to the mirage of the beginning, the mandatory start-up expenses invested to get your business up and running disappear with delight.
If you are drawn to the trap, your success will be delayed. Estimating the exact start-up costs will determine your future goals. According to the tips on luminablog.com, it is important to make sure that your income depends on your expenses.
1. Professional costs
You will have to pay a fee to move from the business concept phase to its realization and registration. Registration costs and procedures differ from state to state and you need to find out about this as soon as you get your business up and running.
Your professional costs will expand and explode: you have to pay for your copyright and patent expenses; you will need management services companies, an accountant, and a lawyer at some point and we know how expensive the services they offer are.
Another “fee” for initializing your business is for the design, development, and hosting of the site. A lot of naive people dare to dream that they can do these things on their own. Design, development, and, most importantly, efficient hosting in online platforms are not easy things to accomplish unless you have an IT staff.
You need to consider servers, hardware and software components, site security, maintenance, IT consulting, and mobile phones.
It is acceptable that you do not forget to consider the fact that you will pay some money for advertising and promotion to highlight your business. But there are chances that you do not have enough income for these services. Even if you know how to place your ads locally and nationally (maybe globally) and you’re probably looking for someone skilled in such things for online advertising and SEO, it will cost you anyway.
The usual marketing expenses are often forgotten, as is the fact that you will print posters and other promotional materials. Don’t forget that it will cost you access to the exhibitions specific to your niche and the industry, in general because you need the name of your business to be seen and heard. Public relations is not cheap, but by investing in PR, your business will grow quickly.
4. Administrative costs
Hurry things up a bit and record any business start-up expenses – such as the costs of paper clips and staplers. High expenses, such as desks, chairs, files, etc., should not be taken into account yet. Remember that these administrative costs will include licenses and permits, parking, utilities, rent, and more.
In addition, if you want to have a professional image, you need to invest in your packaging materials (not to mention mail and other ways of sending orders), which will bring you in front of other expenses that must be taken into account.
5. Sales costs
It seems counterproductive to think that the first money earned from the first sales is the cost of your business, but that’s the way it is in the beginning. The raw materials will arrive at the factory on account of your sales and you must strengthen your product inventory even if those sales exist or not.
If your business will grow, then you will need to consider transportation and storage costs, which will include insurance.