How Much Will It Cost to Start My Business? - SB010 - a podcast by Connie Whitesell - Business Planner, Strategist, Coach
from 2017-03-14T21:50:48
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Find the Right Biz for You Series (Part 9) Welcome to Episode 10 of the Small Biz 101 Podcast – The 9th episode of the Find the Right Biz for You Series! We’ve covered quite a bit in previous episodes:
- Self-assessment
- Generating Biz ideas
- Business Styles
- Business Cautions
- Research - Is you idea a viable one?
- What you anticipate the costs will be to start the business?
- What the ongoing costs will be?
- Determining your cash flow and – the highlight – what is your breakeven point? When will your business turn the corner into profitability.
Start-up costs
Even at this early stage, it’s a good idea to at least have a sense of these numbers. They will reveal many critical things to you:- How much you will need to begin to open the doors.
- Whether you afford the business on your own.
- Whether you need to put off starting the business for a bit while you save money.
- Should you use other sources of financing?
- Down payment, if purchasing space
- Rent, if renting space + security deposit
- Build-out Costs
- Facility equipment
- Office furniture
- Technology equipment
- Initial supplies
- Decorating
- Signage
- Lighting
- Starting inventory
- Accountant
- Attorney – his/her own fees + incorporation fees
- Business Coach
- Graphic Designer
- Website designer
- Person who comes to your location to set up your computers and phones
- Education/Certifications
- Memberships
- Professional library
- Domain name
- Webhosting
- Online Scheduler
- Online payment processing
- Advertising and other marketing costs
- Brochures, flyers
- Business cards
Cash Flow and Break even Analysis
Estimate of the gross income you anticipate generating on a monthly basis Estimate your ongoing monthly expenses:- Rent/mortgage
- Insurance
- Utilities
- Online charges
- Loan payments
- Marketing and advertising fees
- Employee salaries
- Your salary
- Ongoing independent contractor fees
- Inventory costs
- Taxes
- Maintenance
- + 15%
- How much money will you need to set aside to support the business until it reaches a profit point?
- Do you need to adjust factors around the source of your income (even changing your business model, possibly) to take your business into the black in a time frame that works for you?
- Can you cut expense estimates to meet your needs?
- Do you have enough money to start this business on your own or will you need to obtain funding from other sources?
- You
- Your family, friends, and associates
- Debt financing
- Equity financing
- Crowdsourcing
Further episodes of Small Biz 101 Podcast
Further podcasts by Connie Whitesell - Business Planner, Strategist, Coach
Website of Connie Whitesell - Business Planner, Strategist, Coach