Starting your own business requires a lot of planning. Many people have great ideas that never get off the ground because the startup costs are too high. It’s a good idea to have at least six months of your overall budget saved up before you launch. Here are some common expenses to expect when you want to open your own company.
Office Space and Utilities
You may not have the money to buy or build your own space, but you need to figure in the cost of renting. Most property owners don’t cover the cost of your utilities or phone as part of the rental agreement, so you will need to budget for that as well.
Furniture and Equipment
You can probably find a good deal on commercial office furniture if you shop around, but expect that it will be at least 10% of your overall startup cost. Weigh the benefits of buying with the costs of renting it to decide which is the better option for your business.
It’s important to take care of the people who take care of your company, so you need to be sure you can pay them. Don’t forget to plan for related expenses such as any health coverage or additional benefits you are offering.
The best business plan still won’t succeed if no one knows about it. You must figure the hosting cost of your website and all your marketing strategies when you are budgeting for startup costs.
Other Monthly Expenses
There are a lot of small bills that can add up when you own a business. The specific insurance policies you need, taxes you pay and inventory you keep may vary depending on your specific industry, but they are all expenses that need to be considered.
Owning a business is a lot of work, but it can be rewarding. Having a clear idea of how much it is going to cost to start can help set you up for success.