Identify your starting costs

Most businesses fall into one of three categories: physical businesses, online businesses, and service
providers. You will face different startup costs depending on the nature of your business.

Here are some common start-up costs that aren't important to you. Review this list and don't forget
to include any other expenses related to your business.

O Office space

O equipment and accessories

O communication

O utility

O Licenses and permits

O insurance

O lawyer and accountant!

O Inventory

O Employee salary

O Advertising and marketing

O Market study

O Printed marketing materials

O Create a website

Estimate how much it will cost you

Once you have a list of your expenses, you can estimate the actual expenses. This process covers all
your expenses. Will be different

Some costs are worth it. Licenses and licenses have clear and published costs. You may need to
estimate other, less defined expenses, such as employee salaries. Look online and talk directly to
consultants, vendors and service providers to find out what such companies are doing to pay for their
expenses.
 Include your own expenses for the
full financial picture
Once you've identified your business expenses and how much you spend on them, you'll need to
organize your expenses into one-time expenses and monthly expenses.

One-time costs are the initial costs needed to start a business. Buying big items, hiring a logo
designer, and paying for permits, licenses and fees are usually considered one-time expenses. You can
generally reduce one-time expenses for tax purposes, saving you the tax you owe. When it comes time
to file your taxes, find out your expenses and talk to your accountant.

Monthly expenses usually include work such as salary, rent, and utility bills. You may want to include
at least one year in your monthly expenses, but five years is ideal.

Increase your own one-time and monthly expenses to get a better idea of how much you need and
when you need it.

Calculate your own cost to secure seed capital

It is a good idea to make a formal report of your estimated expenses.

You want it in a clear and simple form. Investors and lenders compare expected costs to expected
costs and determine the likelihood that your business will be profitable.

Startup cost calculator

After following the steps above to help you research your initial expenses, you can enter your
projected monthly and one-time expenses into this startup expense calculator. The calculator will
automatically calculate your total and your total as well as the percentage of each item (as you can
guess, the rent is 40% of your initial cost). Keep in mind that some expenses may not be related to your
business, or you may need to add other items to the calculator.