Are you thinking about starting a business and don't really know where to start? A good place is estimating how much the startup will cost be! Knowing your expenses is extremely important even for a seasoned business owner.
When figuring your startup costs you need to take into consideration your physical assets, your one-time costs (or irregular costs), your monthly production costs, and your operational costs.
Physical Assets are things that you buy that are long term in nature ~ they are your tangible assets. These include your equipment, building, etc.
One-Time Costs or irregular costs are the costs that don't have a monthly fee. Which include your attorney fees, formulation fees, graphic designer fees, insurance, permits fees, etc.
Your Monthly Production costs vary with your production volume, so the more you sell the more your production costs will go up. These costs include materials, shipping costs, labor, etc.
And finally your Operational Costs which are your regular monthly expenses that will rarely fluctuate. These are your cell phone bill, rent, web hosting, bookkeeping, etc.
WCE has put together a very simple Startup Cost Worksheet that will help you breakdown your physical assets, your one-time costs, your monthly production costs, and your monthly operational costs. You can find the worksheet HERE!!
We hope this helps you get one step closer to achieving your dreams! Another thing to consider when thinking about startup costs is getting funding for you business! You won't want to miss WCE's next webinar What You Need to Know About Venture Capital! You can find this and all our other upcoming webinars and workshops in our Upcoming Events!