- Establish your vision for the business and determine what size it must be to succeed before beginning to calculate start-up costs.
- Be realistic about how much money you might need to supply yourself and how long you can go before reaping financial rewards from the company.
- Speak with others who have launched similar ventures and listen carefully to how much money they needed to expend to get their operation off the ground.
Action Steps
The best contacts and resources to help you get it done
Use a free sheets and calculators
No matter how much thought you've given your business, you're bound to forget some start-up item unless you use a comprehensive sheet or workbook. Did you figure in a cost for transportation and installation of fixtures, for example? How about decorating or remodeling the space? Outdoor signage? Ads in the Yellow Pages?I recommend: The Better Business Bureau, FindLaw for Small Business, and BusinessKnow-How have detailed sheets and workbooks to help calculate your costs. Or order this book: "Adams Streetwise Small Business Startup."
Buy specialized software
Programs will walk you through the startup process and send you off with a customized business plan.I recommend: Palo Alto Software and Clearly Startup can get you started.
Figure the tax implications
You'll need to choose a tax year, a business structure and prepare for employee payroll deductions among other steps.I recommend: Get advice on how to meet your obligations from the IRS.
Don't forget legal fees
You will likely need the services of a business lawyer who can walk you through the paperwork needed, whether it be incorporation papers, fees, permits, etc. Don't forget to calculate legal fees in your start-up costs.I recommend: The American Bar Association has a Lawyer Referral and Information Service that can link you to lawyer referral services in each state and Canada. You can also find a lawyer through Martindale-Hubbell.
Include calculations for Web site development
A Web site is a necessity for most businesses. It can give you the air of a long-established business and bring customers to your door. Don't forget to include a calculation for design and development in your start-up costs. Some software packages can help you set up a Web site relatively inexpensively.I recommend: You can calculate costs for simple web development by researching Yahoo! Web Hosting and Ken Evoy's Site Build It! System.
Tips & Tactics
Helpful advice for making the most of this Guide
- Overestimate your expenses when figuring your start-up outlay.
- Underestimate your income when calculating initial costs.
- Double or even triple the estimated time to launch and establish the business.
- Add 15 percent, if not more, to monthly operating cost calculations to take into account unforeseen expenditures.
the Getting Started Information for Entrepreneurs page at Business.com
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