Start-Up Costs for a Small Business 1-2-3

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Find Out How Much it Will Cost to Start a Business Using a Start Up Costs Worksheet.

Before starting a business, you want to get a general idea of what your start up costs will be. The good news is that you have a choice on how much money you invest to start your business. The challenging aspect is that business start up costs vary. Every business is different, so there is no standard start up cost for any particular business.

The best way to go about figuring out the potential cost of starting a business is by using a worksheet. A worksheet can help you budget and plan for expenses so you are better prepared to turn a profit. If you are planning on applying for a loan or obtaining some sort of financing, understanding your start up and operating costs is essential. You will need to provide this information to the lender.

How do You Find Out This Information?

For things like licenses and permits, you will need to contact your local city office, as these fees vary by location and by business type. For services like insurance, accounting or site remodeling, it's a good idea to comparison shop for bids to not only get a good price but also better estimate what your final cost will be.

Since financial data (like start-up costs) is generally included in a business plan, you can sometimes get some insightful information by looking at other business plans that apply to your particular industry. www.Bplans.com has some sample business plans on their website that you can view for free. Search for a plan that best matches your industry.

Don't Forget Monthly Operating Costs:

You also want to come up with a general idea of how much it will cost to operate your business on a monthly basis. Calculate this cost for six months and include it in your start-up costs. When you have sufficient funds set aside to run your business, you give yourself some wiggle room. Having money available can be the deciding factor when it comes to a start-up's success or failure, because you don't really know how long it will take to start bringing in a steady income.

Below is a basic start up costs worksheet for a small business. Not every item will apply to every business. For example, not every business needs a vehicle, and a home-based business will not need to lease a storefront.

Small Business Start-Up Costs Worksheet:

License & Permits (Contact City Hall)	$
Accounting and Legal Services	$
Insurance (get free quotes online)	$
Office Space or Storefront Lease, Construction or Design Services Needed	$
Signage (SignsBannersDecals.com)	$
Furniture, Display Fixtures, Storage	$
Utility Deposits (Contact Your City)	$
Business Equipment, Computers, Phones, etc.	$
Rental Equipment & Leasing	$
Vehicles or Trucks	$
Office Supplies	$
Hiring Expenses, Employee Tax and Benefit Programs, Training, Salaries	$
Start-Up Inventory, Raw Materials	$
Marketing Materials Including Logo, Business Cards, Stationary, Brochures, Website	$
Start-Up Marketing and Advertising, Grand Opening Promotions	$
Travel and Entertainment	$
Working Capital (x 6 months)	$
Total:	$

More Start-Up Tips:

For steps on how to start a company, check out the Business Start-Up Checklist. If you are looking for a low start up cost business, check out www.FreeHomeBusinesses.com. They list home based business ideas that you can start for free and operate for very little expense.