Deciding to open a startup, and even creating your business model, are the easy parts. When it comes to setting up shop for yourself, the tricky work starts when capital comes into play.
Calculating startup costs can be one of the most confusing, challenging, and even discouraging parts of opening your own business — but it doesn’t have to be.
If you’re planning on, or even just thinking about opening a startup but aren’t sure where to begin when it comes to figuring out startup costs, don’t worry. We’re here to help.
Here are three must-have tips that will help you successfully calculate your startup costs.
1. Start With Ongoing Costs
Sure, you may have enough in the bank to open your business today, but do you have enough to keep it open through the end of the month? What about the week?
Setting up a startup can be confusing and stressful, so, understandably, you may get so caught up in what you have to get done right now that you overlook tomorrow. And that can get you in some serious hot water financially once the bills start to pile up — This is why you need to take some time to calculate your projected ongoing costs before you open for business.
Your startup’s ongoing costs include things like payroll, rent, taxes, loan payments, and even the ongoing cost of maintaining your website.
2. Calculate One-Time Expenses and Assets Seperatly
While your one-time expenses and assets may seem similar, they are two completely different beasts, which is why you should tackle them separately.
Think of it this way; where things go sideways, and you find yourself in need of a little extra cash fast, you can sell off your assets. These include things like office supplies, company vehicles, and even stock. However, you would not be able to sell off your logo, web design, or any business cards you had printed — these are your one-time costs.
So, when you’re calculating your startup costs, make sure you keep your one-time costs and assets separate.
3. Track Everything With a Worksheet
Finally, one of the most basic and most important financial tips you could ever follow as the owner of a brand new business is to keep tabs on every single expense — this is especially true when you’re calculating startup costs. And, one of the best ways to do that is by building a startup cost worksheet.
A costly worksheet will help you layout and organize all of your expenses. So, you can keep tabs on the overall cost, how much you’ve spent so far, and what you still need to get all in one place.
While there are plenty of helpful and easy to follow startup cost worksheets online, the best layout is the one that works for you. So, feel free to design your own.
Must-Have Tips on Calculating Startup Costs
Now that you know a little bit more about calculating startup costs, it’s time to get to work figuring out exactly how much you’re going to need in the bank to make your dreams a reality.
Are you looking for more advice on how to start a business successfully? We’ve got you covered. Check out the rest of our blog for more helpful articles and advice today!