Wednesday, September 5, 2012

Entrepreneurs - What does it cost to start a business?


You have your business idea, you think you'll be able to get a good loan, and even your business plan being written, but ... The hot topic is great - How much to start a business?

Well, first of all we must be realistic and understand that it is unlikely to make a profit within the first six months of operation - so you should also budget for the first six months running costs. So here is your shopping list:

1) Purchase of lease / concession / local. This will include any real estate agent fees, deposits and other legal expenses.

2) Costs to furnish and purchase new equipment. This will include any work that needs to be done on your premises and all equipment must be purchased in order to start and run your business. Often you can lease equipment to mitigate the costs of starting up.

3) Six months of advertising and marketing. This will be particularly high at first, as you establish your business. Factor in some cold calls as a launch party or opening day.

4) Legal fees, licenses and banking services. Your company must be set properly licensed and have a good bank account. Unfortunately, all these require money. You may also need a payment processing service to use credit cards.

5) Personnel costs for six months. The staff will be the basis of providing good service to its new customers. Make sure you have enough money aside to find, train and keep them!

6) supply of uniforms, office and marketing, packaging, etc. You will need to establish your brand. This means that the staff will need divided or not the company cards and badges. You will need brochures, advertising, etc. If necessary, it will also need standardized packaging and documentation. Your office will also need office equipment and supplies. You should also budget for the design of logos, brochures and advertising if you can not do it alone.

7) stocks and - for you for six months.

8) Maintenance for six months - your equipment will also go on for six months.

9) Any loans that you will also be paid. Again looking at least six months or until the draw and can pay the loan.

10) Your salary for six months - then you have to pay their bills and support your family during this period. You should wait for a while your standard of living will go down.

Add this and add 10% for contingency

Good luck ......

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