The Possible Cost in Starting up Your Own Small Business
Starting up your own business can cost you a lot of expenses although it depends on the type of trade that you want to build. Of course at first, you will be using your personal money in order to establish the small business you want.
Paul Hawkins said in his book ‘Growing a Business’ that too much startup capital may be helpful, although it can also cause overspending.
Here are the things that will cost you major expenses in starting up that small business:
In order to establish your small business, there are business licenses that you first need to purchase from the local revenue department on your state. The licenses may not cost you that high compared to the other major expenses that you will be required of. Within the cities and states in the US, a business license costs not more than $100; this is the average cost as of 2011. Apart from the general business licenses, there are others of the like that are required before you can operate the business.
In case you want to startup a restaurant business, you need to get additional licenses and health department permits. Usually, these permits cost around $50 to $1,000 per year. An even bigger establishment can cost thousands of dollars.
2. Equipment for your establishment.
The equipment for your small business will depend on what type of business you are building. Some of the common equipment are laptops, office supplies, tables, chairs and if you are building a restaurant, you will also need kitchen equipment. The equipment may cost you more than half of your entire startup cash. If you want a bigger establishment, the expenses for equipment may even climb up to larger costs.
The operations cost actually depends on your current lifestyle and the monthly expenses that your small business is paying out. This may vary each month. In order for you to limit your operations cost, you need to know how to save with regards to your personal expenses, your establishment electricity use, internet use and other bills that you will be paying.
Marketing is important for starting up businesses because it is a way to draw in more customers and audience into your trade. The cost for marketing may depend on how you like to market your business. You may use different strategies in marketing such as flyers and local bulletin boards which will cost you free. Others like TV and radio ads may cost you up to $10,000 which is way too much when you’re just building a small business.
The cost you pay for starting up a business depends mostly on what you want. If you want to save more money, there are always some strategies that you can use.