Startup Costs Every Business Should Know About

Because every business is different, your exact startup costs will depend on your business’s needs and specifications situs judi online. For example, a brick-and-mortar store will likely have higher startup costs than an online business, and a coffee shop requires different equipment and furniture than a bookstore.

However, some types of startup costs apply to most types of businesses.

Research costs
Though this is optional, some business owners hire market research firms to help them assess the industry and market before starting their business. You can save money by doing this step on your own, but if you hire a research firm, include this cost in your business plan. [Read related article: How to Conduct a Market Analysis for Your Business]

Borrowing costs
Creating any new business requires a lot of capital, which is usually acquired in one of two ways: equity financing or debt financing. Debt financing means borrowing money directly, whereas equity financing means selling a stake in your company to receive financial backing. Most businesses take out small business loans – including SBA loans – from banks or other lenders.

If you take out a loan, calculate the costs of the loan payments into your budget, and ensure payments are made on time.

Insurance, licensing and permit fees
As you write your business plan, research the licenses, permits or insurance required of your business. You should carry some form of insurance to cover yourself, your employees, and your business assets from any liabilities that may arise, and be sure you consider the continuing cost of renewing licenses or permits as needed. [Read related article: An Insurance Primer for Small Businesses]

Technology costs
This is an umbrella category that covers anything from the cost of creating and maintaining a website, setting up information systems, computers, and the use of accounting software and a payroll service.

Some small businesses may outsource their payroll and accounting needs to save money, though there are many budget-friendly options available. There are also plenty of ways to save on other technology costs, such as building your website.

“The cost of building out a website with customized graphics ran me about $1,200,” said Jonathan Mandell, CEO of Teepee. “I primarily used contractors on Upwork and Fiverr.”