Developing a Start-up Cost Worksheet is a crucial step to open a new business. A start-up cost worksheet will give you an idea about how much budget you need to open the doors to your business.
How to Calculate Start-Up Costs for a Business
Each business is different, and needs its own specific expenses and allocation of its budget. Here are some useful tips on how to calculate start-up expenses that fit your business.
What Are One-time Costs & Operating Costs?
One-time Costs
– Building / Real Estate: security deposit for rent, first month rent, down payment, etc
– Start-up inventory: inventory, advance deposits to suppliers, etc
– Administrative expenses: licenses, permits, insurance, utility deposits, supplies, professional fees, etc
– Marketing & promotional expenses: advertising, business cards, brochure, flyers, website setup, etc
Operating Expenses (ongoing expenses, working capital): rent, utilities, vehicle & travel expenses, office supplies, banking feeds, credit card fees, loan payments, salaries to employees and the owner, etc.
* To open a business, it’s recommended to have a cash reserve for three months working capital.