Once you’ve gotten to grips with the impact on your personal finances, it’s time to focus on how much it will cost to get your business up and running.
One-off costs to start up
These tend to be bigger ticket items, including:
- lease or purchase of buildings or land
- permits, licenses or other compliance costs
- equipment and/or machinery
- shop fittings and/or office furniture
- a website and domain name
- registering your intellectual property (IP), eg trade marks or patents. Note not all types of IP need to be registered.
These are bills and other costs you need to pay on an ongoing basis, also known as overheads.
These tend to be time-related, eg monthly phone bills or quarterly rates payments. Common fixed costs include:
- utilities, eg electricity and internet
- rent or mortgage payments
These are expenses that vary depending on how much, or how little, your business produces.
Common variable costs include:
- raw ingredients
- production materials
- stock orders.
An accountant will be able to run through your projected expenses and pinpoint any others you might not have thought of.