Understand Your Startup Costs

Understand Your Startup Costs

Depending on the business, the startup cost will vary.The startup cost would majorly comprise of

  • Sales costs:  Product inventory, raw materials, manufacturing equipment
  • Professional fees: Setting up legal structure of your organisation, trademarks, copyrights, patents, drafting partnership
  • Administrative costs:  Various types of business insurance, office supplies, licenses and permits, express shipping and postage, product packaging, parking, rent, utilities
  • Technology costs:  Computer hardware, computer software, printers, cell phones, website development and maintenance, high-speed internet access, security measures
  • Wages and benefits:  Employee salaries, workers compensation, payroll taxes, benefits
  • Sales and marketing costs: Marketing materials, advertising, trade association membership fees, event or trade show attendance or sponsorship

It is important to decide whether each cost is essential or optional. Depending on this, the decision to incur this cost is taken.