Small Business Startup Costs You Need To Know For 2014
So, if you are reading this, you must be thinking about starting your own business. These are perilous times for new businesses as the country is only just out of recession. Banks are lending again but very cautiously, and people are starting to regain the confidence to spend.
The startup cost for your business will vary according to what the business actually is. Most, however, will have to bear common expenses as they work on similar basic principles.
Now you have decided to strike out on your own; here are some small business startup costs that you need to know.
Where To Base The Business
Business premises are likely to be your biggest expense. First, let’s consider the rents. Rents are high and will need to be met every month. The location of the premises often has a big influence on the rent. Maybe you are opening a shop which would benefit from a prominent position on the high street. A location such as this will command a higher rent than a place in a side street. This is because the location often has a direct influence on the amount of money a business brings in. So ask yourself; does your business need to be in a prestigious or prominent place with high rents? Maybe your clients will find you from a directory and, therefore, passing trade is irrelevant to you.
Fitting Out The Premises
It usually costs a lot of money to prepare a building to do business, internally and externally. To begin with the outside of the building will need to be dressed. For this, it will be necessary to contact specialists in signage design. A high quality sign is often the first thing people see, and they often forms first impressions from this. If you are creating an office, you will need desks and filing cabinets. For a shop, it is likely that professional fitters will need to come in to create the company image you are striving for as well as the practicalities of the shelving, etc.
Technology and Communications
In the modern digital world, it is important that most businesses have internet access and the capability to communicate anywhere in the world. Therefore, computers and a broadband router are essential pieces of kit.
Having a telephone line and broadband in place of business is charged differently to the single package you have at home. The providers will often ask that you agree to a minimum spend on telephone calls. The broadband is charged separately too, usually on a quarterly basis.
The software you use is often very expensive. This is usually a single payment, however, and you are licensed to use the software for life. The wise people, today, are turning towards cloud based applications that often come free of charge. In fact, working in the cloud cuts the cost of running a business so much that they are moving towards basing their whole presence there and doing away with the need for an office altogether.
You will feel as if you re bleeding money for the first few months when starting your business; that is why a great deal of thought needs to go into it beforehand. Be brave and hold your nerve because once you are established, the outflow tends to slow down. Then you will realise that being your own boss is a great experience.