What are startup costs?
You’re likely going to need to spend some money before you can launch your new venture. Figuring out exactly what you need to spend is crucial.
Costs to consider
From legal fees to office supplies to monthly utilities, there are any number of costs you need to take into consideration before launching your business. And while every business is different, there are a few common things you’ll want to account for – whether you’re opening a physical store, offering a service or creating an online business.
Rent: Will you need office space for your business? Or will you need to rent storage for your products or equipment?
Equipment: What equipment is necessary for your business? Do you currently own it, or will you need to purchase or rent it?
Fees: Business licenses and permits cost money. Licenses and permits will vary depending on where your business is located. Refer to local, provincial and federal government resources to understand which licenses and permits you’ll need.
Payroll/Recruitment: If you need employees for your business, your startup costs should estimate not only their salary but also the cost of advertising for the positions you need.
Marketing/Advertising: You’ll need to factor in the costs of print ads, online ads, selling materials, signs or anything else you’re going to use to create awareness of your business. This could include the cost of design, printing and/or paying for advertising placements.