The 10 Most Common Start-up Costs to Consider when Launching Your Business

THE 10 MOST COMMONSTART-UP COSTS TOCONSIDER WHEN LAUNCHING YOUR BUSINESS

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Budgeting for the early days of your company is extremely vital. If done incorrectly, your business may never even get off of the ground in the first place.

Start-up costs should include initial one-

time costs to launch the business as well as ongoing expenses

in the first few months to support the

company as it gains traction in the market.

Because each business is unique, there is no universal funding amount needed to launch a business.Despite this, the following slides will serve as a checklist representing common start-up costs.

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#1: Rent and UtilitiesWhether a traditional brick and mortar store, co-work space or a dedicated office space, most start-ups should plan on an initial down payment and ongoing payments for both rent and utilities

#2: Furniture, Fixtures, and Equipment

Furniture, Fixtures, and Equipment (FF&E) are capital expenditures that do not have a permanent impact on

the building or utilities. Examples include computers, desks, chairs, etc.

#3: Professional FeesThe most common professional fees for early stage businesses include legal fees needed for incorporation and potentially establishing other intangible assets such as intellectual property and/or trademarks. Others may include accounting and consulting fees

Regardless of the sector, every operational business needs a website to aid in brand awareness (whether a landing page or fully operational)

#4: Website Development

#5: Personnel ExpensesIt is paramount for start-ups to execute on a key hiring plan that focuses on employing the right individuals to assist in operations, sales and marketing, finance and accounting. Startups should budget for key management and support hires

#6: Sales and MarketingAllocating a substantial budget for a sales and marketing budget is key. Providing the marketing team with resources to implement online and offline sales and branding initiatives will allow the business to get off the ground

#7: InventoryProduct-based businesses typically require initial inventory in order to sell their goods to other businesses and consumers

#8: Research & DevelopmentR&D can represent a substantial initial and ongoing expenses for certain industries like software and medical device companies among others.

#9: Miscellaneous Office Expenses

General office expenses encompass costs incurred to support operations

and selling activities. Examples include telephone, internet and office

supplies

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#10: Cash ReserveIt is imperative that entrepreneurs Have a cash cushion on hand at all times To Protect the company against unprofitable months and quarters. This reserve should ideally total six months worth of operating expenses along with a substantial working capital budget

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In summary, here is the list of items to be sure to include in your start-up budget:• Rent & utilities• Furniture, fixtures and

equipment• Professional fees• Website development• Personnel expenses• Sales & marketing• Inventory• Research & development• Miscellaneous office

expenses• Cash revenue