What Is Included In Your Business Start Up Cost?

Many a business idea has been killed off for good because of the final tally of the business start up cost. Even a small business, one that you plan to run from your own home office can be costly, especially in the very beginning.

Many businesses have started and then failed because the owner did not realize just how big the initial investment was going to be and did not plan for everything included in the business start up cost. Even if you have owned a business before, there are always changes in laws and regulations which might be of particular concern to you.

Included in the average business start up cost are the obvious expenses, including rent, utilities and the cost of any inventory you will need. Office supplies and office furniture might also be another cost you will have to plan for, but there are plenty of others that might come along.

And, even though you knew that you would have to pay certain amounts for your utilities, there are often hidden costs that you might not have realized. Utilities might also be a tricky consideration for those who are starting their business at home because while you were paying one rate as a residential customer, you might be asked to pay more because technically you will be considered a business customer.

There are other expenses that might crop up as part of the business start up cost, including permits, licenses and other official documentation. You might have to apply for a zone variation if you are putting a business in certain areas, including in a residential area. Certain types of businesses may not be affected by these laws, but others will be. It is always best to be sure that you are completely legal or you will be facing fines which are generally not counted as part of the average business start up cost.

One of the biggest expenses, beyond rent and utilities that you will face as part of your business start up cost will be for inventory if you need it as well as your salary expense if you have any employees at all. It might take a while for your business to start showing a profit but you will still have to pay your employees unless they are part owners in the business venture and know going in that they will not be getting any return on the investment immediately.