The costs of setting up a business can be considerable and are easy to misjudge. So you should plan a new venture's cash requirements before spending money. Above all, you need to calculate your cash flow properly as even profitable businesses can fail simply due to lack of cash. Here is our 15-point guide to help you get started.
Investing in your business
The costs of starting a new business can include:
- Market research, including special reports and market research agency fees.
- Registering trademarks or patents.
- Website development, including special functions such as for ordering and payment.
- Professional fees for writing a business plan, especially one needed to secure finance.
- Bank charges for initial costs of business loans, although these are usually added to the repayment plan.
- Legal fees for drawing up documents, such as client terms and conditions, website disclaimers, partnership and shareholder agreements.
- Accountancy fees for advising on accounting and taxation issues.
- Insurance costs, such as for business premises, employers' liability, trade credit, professional indemnity, public liability and motor vehicles.
- Equipment, fixtures and fittings, whether purchased outright or hired.
- Remodelling business premises, including shop or office refits, security systems, storage, signage and redecoration.
- IT systems, both hardware and software.
- Office supplies and stationery.
- Developing products and acquiring initial stock.
- Buying or hiring motor vehicles for the business.
- Marketing to launch your business.
It is sensible not to underestimate these costs and to include a provision for unforeseen items.
Controlling the cost of starting up
Please contact us to discuss the costs of starting up. We can help by forecasting your cash flow and assessing the finance options.
