Startup Costs

In order to be successful at starting up and running a business, you need to have a clear understanding of your business - both strengths and weaknesses. You also need to have a clear mission and goals as well as measureable objectives. Acquiring this understanding calls for developing and documenting a business plan. And to do this, you need to collect information about the business environment, your products and the marketplace you are targeting.

In today's economic environment, the survival and prosperity of your business venture hinges on your familiarity with the impact of technology on your marketplace and a thorough knowledge of your competition. Your success depends on your ability to identify those niches where you can be successful and the resources that you need.

You can find a recommended business plan outline here. The most important element is actually one of the last and should be performed immediately - the financial analysis. This will tell you whether your business idea is financially viable and whether it will be profitable in a suitable timeframe. You also need to understand how much startup capital (money) you'll need to get the business up and to keep it running until such time as you think it will become profitable.

 

One-Time Start-Up Costs

1.   Legal Fees   $
2.   Licenses and Permits   $
3.   Prepaid Rent   $
4.   Deposits (Public Utilities, etc.)   $
5.   Remodeling Work   $
6.   Furniture and Fixtures   $
7.   Letterhead, Cards, Logo, Brochures   $
8.   Advertising (Signage, Grand Opening, etc.)   $
9.   Computers, Web Site, Software   $
10.   Insurance   $
11.   Accounting Fees   $
12.   Management Consultants   $
13.   Cash   $
14.   Other   $

__________

Startup Subtotal

$

Monthly Expenses

 

15.   Salary - owner (amount you need to live)   $
16.   Other salaries and wages   $
17.   Lease   $
18.   Utilities   $
19.   Telephone   $
20.   Advertising   $
21.

Marketing

$
22.

Entertainment and Travel

$
23.

Insurance

$
24.

Taxes, including Social Security

$
25.

Internet and Web Site Hosting

$
26.

Repairs and Maintenance

$
27.

Legal and other professional fees

$
28.

Miscellaneous

$

__________

Subtotal

$

Calculate total start-up funds

29.

Estimated # of months to become profitable

  

Monthly expense total for those months

$

Your one time start-up expense

$

__________

Total start-up costs

$

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