Understand you Start up Costs
Are you starting a business and confused about the amount of money that you will need to spend on it? Well, there is no reason to fret. You have to simply have an idea of the major expenses that you will have to take in your business.
The startup cost depends on the type of your business. For example, a furniture retailer will definitely need a shop where he can display his products and some staff to handle it. If you are into online retail business, then you might be operating from your house and you might need any physical office space at all. In such cases, you can depend on virtual office solutions which can increase the credibility of your business at really low costs.
Most of the startup expenses will comprise of the following.
Sales costs: You will need to stock your products in advance and in some case purchase the raw materials and manufacturing equipment.
Professional fees: You will also have some expenses for setting up a legal structure for your organization. You will also need money for stuff like trademarks, copyrights, patents and for drafting partnerships.
Administrative costs: Various licenses are required for setting up your business in India. You might also need expenses for shipping your products, utilities, phones and other office costs.
Technology costs: This is also a very important aspect as you will need to set up high speed internet for your business. Some businesses will also need several computer hardware and software which can be quite expensive. Website development also would come under this.
Wages and benefits: You will also have to put aside money for employee salaries, workers compensation taxes and other benefits.
Sales and marketing costs: Marketing costs and sales are also a requirement.
Calculate all your expenses well in advance so that you don’t run short of money and have to close down due to lack of funds. Having a clear idea of the expense requirements will always help businesses in the long run.