Create your own user feedback survey

Business Start-up Costs versus Ongoing Costs.

Business start-up costs are different than ongoing business costs. It is important to know the costs of each before going into business.
Business start-up costs are the one-time, upfront costs that you have to pay before you can start your business, ex., deposit to hook up the electrical supply.
Ongoing costs are the reoccurring costs that happen every month, ex., the electricity bill for that month’s usage.
Knowing your business start-up and ongoing costs will help you determine the breakeven point for your business.
Following is a list of common Business Start-up Cost items and common Ongoing monthly costs. Add or delete items that pertain to your specific business.


 Business Start-up costs (onetime expenses)

1. Insurance: property, liability, vehicle
8. Licenses: business or professional; permits
9. Branding: logo, business cards, signage
10. Advertising and promotion for opening
11. Vehicle: purchase or lease
12. Purchase price or franchise down payment, if buying property or a franchise
2. Leasehold improvement: putting up walls, lighting, installing equipment, decorating
3. Office furniture, office supplies, computers and software, tools
4. Inventory: items to sell or make into sellable products
5. Deposits: rent, public utilities, internet equipment
6. Professional fees: legal, accounting and other fees
7. Operating cash (for at least first 3 months)
13. Other

Ongoing Monthly costs (recurring)

1. Salary: yourself and any employees
2. Government: payroll taxes, Payroll deductions, health insurance
3. Rent, mortgage or franchise fee payments
4. Office supplies
5. Equipment: monthly payments or lease payments
6. Advertising: newspapers, radio, television, Internet
7. Utilities, telephone and Internet
8. Interest and principle payments: loans, credit cards
9. Inventory replenishment
10. Professional fees: accounting or legal
11. Vehicle maintenance
12. Other

You can leave a response, or trackback from your own site.

Leave a Reply

Powered by WordPress