Starting a business is an exciting time and although I say this almost daily, the key to a new businesses success is in the planning.
Depending on the type of business, the costs involved when just starting out can vary.
It is important to look at theses costs before you start and keep a list to hand of everything you need and how much this will cost. Also consider how these will be paid for or if you are looking for financial support in the way of overdrafts, bank loans or grants to name a few.
Set yourself a budget based on the things you need and try to stick to it. I know how easy it is to spend when you are excited about a new venture but always try to keep this in check and stay in control from the start.
Here we look at the main costs that you may come across in the first few months.
As a new business owner, you may need public liability, indemnity, or employer’s liability insurance just to name a few. Make sure you seek professional advice to make sure you are covered correctly. This is not something to be missed.
2. Professional or License fees
If you are in the professional services or many of the service-based industries you may require to be part of professional bodies, licenced bodies, or regulators. Factor in this cost each year.
Many of the cloud-based software subscriptions out there are paid for monthly including many of the Microsoft features, emails, and storage. Keep track of these as they can quickly add up and cancel any that you no longer need.
Getting an accountant on board early on can pay dividends down the line. Getting the business set up correctly to start with is a must but there is also a cost for this advice.
5. HR Advice
If you are taking on employees then having the correct employee contracts, procedures and rule books in place again is key. This is not an area to skip over and is it well worth a financial investment to get the correct HR support.
6. Legal advice
This may be needed for many reasons but is commonly seen if you are taking on a premises and have leasehold agreements.
Letting people know about you and your new business is all part of a bigger marketing picture and there are many different types of marketing activity which can be explored. Some are free and some (like Facebook Ads) can cost anything from a few pounds to a few thousand pounds depending on your budget. Also, this is a great time to get professional marketing advice to bring new customers to your door.
8. Website Development
Most businesses now have an online presence and if you are lucky enough to have someone design and launch a website for you then this can often be a significant expense.
If you are selling products you may need to buy in stock to either, make your final product or sell on. Buying in bulk can be a great way to get discounts from your suppliers but only if you have the cash to do so.
10. Office costs
You may need new computers, printers, desks or even some basic office stationery. The smaller things can add up too and if you are anything like me, can get rather carried away when it comes to stationary and note pads!
11. Financial support
If you have chosen to use a business bank loan, overdraft, or some other way of financing your new business, make sure the repayment and the interest on any borrowing is noted and taken into account.
For more help and advice when starting your new business, visit us on Facebook or see our set of services which we have specifically designed for new business!!