Getting your business off the ground takes more work than most new entrepreneurs think. New business owners often miss expenses that incur while starting their business, which can leave new entrepreneurs in sticky situations and can compromise their business’s future and longevity.
While startup costs can vary depending on the business and industry, we suggest all small business owners create a business startup cost checklist to help them navigate the unknown of entrepreneurship.
Why is it so important to calculate startup costs?
- 38% of businesses fail because they run out of cash.
That’s a scary statistic. The following steps will help you avoid that.
- Build a financial roadmap for your business.
- Understanding startup costs helps you make profits once the doors open.
- Knowing where you stand financially will help you determine if you have enough money or if you need external funding.
- Careful financial planning when you are getting your business off the ground will increase your chances of business success.
What to include in your startup cost checklist?
- Research costs
- Legal entity registration costs
- Technology costs
- Licenses, permits, and fees
- Office/retail space and utilities
- Office Supplies
- Marketing and advertising
Bottom line, startup costs can vary, but meticulous planning for expenses will set your new business up for success.