You may have the entrepreneurial drive but do you have the start-up cash needed to get your new business from idea to reality? The accountants at BASC Expertise offer this information on how to make an informed decision on what your start-up costs could potentially be.

Naturally, these will vary depending on whether you’re working from home, opening a retail location or a manufacturing firm, but here are some items to consider:

• Professional Fees. Professional fees such as a legal structure for your business, partnership or non-disclosure agreements, attorney and accounting fees, domain names, website building and fees for consultants and fees for memberships into professional organizations.
• Fixed Costs. The cost of your sales. Will you have to carry inventory? Manufacture raw materials into finished products? Will you be packing and shipping goods? Will you need to obtain warehouse facilities?
• Technology. Will you need to purchase or upgrade your technologies? Is there specific computer hardware and software you will need to purchase and spend time learning? Will you need to purchase high speed internet, IT consulting services, computer servers or security systems?
• Administrative. When it comes to administrative costs will you need to hire employees? What types of business insurance, office supplies, licenses and permits will you need to obtain? Will you need to purchase office equipment such as copiers, fax machines, desks, filing cabinets and will you need to pay rent on office space?
• Marketing. How will you spread the word about your new business venture? Where and when will you advertise and what will that cost? Will you need to print business cards and other marketing materials? Do you have access to, and expertise on, how to utilize social media to help grow your business?
• Human Resources. Will you be hiring employees? If so, you’ll need to consider the wage and benefits package, salaries, payroll taxes and worker’s compensation. You may want to consider outsourcing payroll so you can concentrate on growing your fledgling business.

Don’t forget to figure in the amount of personal time it will take you to get your new business up and running; this is a critical component of starting a new business that not all entrepreneurs take into consideration. The amount of time you will need to spend building your business will be based on the type of business you’re running – a restaurant will naturally take more time than will a home-based social media business, for example. If you attend networking events, talk with individuals in businesses similar to yours as a way to gauge the costs – especially the hidden costs of starting up your business. Remember too, that you will need to figure in time out of the office attending networking events as a way to grow your business – this is as crucial as spending time working on the goods and services you’ll be providing.

This was not meant to overwhelm you, but if you are looking to start a business, consulting an accountant can be a great first step. We would be happy to offer you a complementary consultation, so give us a call at 480-355-1398.