Starting a small business can be both exciting and overwhelming. During this phase there are many factors to consider. It is crucial to determine the various costs you are likely to incur while setting up your new business, along with an estimation of how much you plan to spend on each. Read our post Stepping Stones to Start Your Small Business.
4 Common Start-up Costs You Will Likely Encounter
1. Licenses and permits
All businesses are liable for local, state and federal fees related to licenses and permits. Research your Secretary of State for details.
2. Office space, equipment and supplies
When starting a new business you will require office space, equipment and supplies to conduct your daily activities. The size of your office, type of equipment and amount of office supplies will depend on your business.
When looking for an office space for your new business take into account factors such as the size of the building, the location and the possibility of future expansion. The type of office equipment and supplies will depend on the nature of the business. Before estimating these expenses you must decide whether you will lease or buy, and this decision will be determined by your financial capabilities.
3. Advertising and Marketing
As a small business start up you will require a great deal of marketing and advertising to let customers know you are open for business. Printed marketing materials, advertisement campaigns, email marketing and social media marketing are just a few elements that can be incorporated into your marketing strategy.
4. Creating a website
Every business large or small can benefit from having a website. This allows you to share valuable information about your company’s products, services, promotions and more. There are associated costs such as web-design, hosting fees and domain registration fees that should be taken into consideration.
With any start-up business, planning and research can go a long way. If you plan ahead and determine your costs, you should not encounter unexpected expenses during your start-up. Click here to view our small business start-up ideas