While this question is similar to asking ‘how long is a piece of string?’ we can tell you the costs you can expect depending on the business and the industry you are going into. Thinking about leaving employment to start up your own business is exciting. However, you need to make sure you can afford it. This is what we look at in our Absolute Beginner Course which you can book here.
So, what does it cost to start your own business?
There is a lot of speculation around how much it really costs to set up your own business. Some experts state just £20, while others estimate closer to £100,000. This, as we have already mentioned, is based on your business and industry. If you are selling cars for example, you will need more than £20 to start your business.
Understanding Your Costs
It is really important you define your costs when thinking about starting your business. Creating a business plan, for example, will help you understand how much you need to cover at least the first 12 months in business. Think about the things you need to put on your list;
- Will you need an office or high street shop front? Take note of how much the premises will cost but also the associated costs for these premises.
- You’ll need a website too. How much will the website cost and will you need to pay a monthly hosting fee as well as email hosting and website management fees?
- Are there any legal documents, qualifications or certifications you need as a business in your chosen industry. How much do these cost?
- What equipment will you need to start your business? Do you have a computer, printer, work phone, machinery and more? Think about the equipment you need and decide whether purchasing or leasing is the best option for you.
- If you are employing people when do you want to start employing them from and how much will you pay them? Don’t forget to include taxes and pensions, as well as recruitment and hiring costs.
There will be the above expected costs, but there may be some unexpected costs too. If clients do not pay on time you may have to pay credit card fees and bank fees. You need to have a back-up fund so your business does not fall at the first hurdle.
Running your own business is hard work, but it is so worthwhile. By having your finances in place you can have the peace of mind that you know what is in the bank and the upcoming outgoings.
If you think a financial coach could be exactly what you need to ensure you have your finances in order for your new business; give us a call. We would love to hear about your business dreams and goals. We are here to help you achieve the dreams you have for your business.