Startup Costs

Businesses are not the same, so their startup costs will vary. Some are asset free, some are not. Some are heavily dependent on cap expenditure, some are not. It really depends on what you really need to launch your business and operate it. Some can be launched online, while others need a physical office/store/warehouse/factory/,etc. and need equipment, goods to sell and so on.

Common costs include:

  • Research Expenses – market research reports/agencies/fees.
  • Insurance, License, and Permit Fees – Industry specific permits, Federal and state licenses
  • Equipment and Supplies – Lease vs. buy
  • Advertising and Promotion –
  • Borrowing Costs – Equity Financing and Debt Financing. Interest expenses.
  • Employee Expenses – Wages, salaries, and benefits.
  • Technological Expenses – Website, software (accounting, payroll, productivity, office,..)
  • Legal Costs – agreements, registration fees, hiring. For corporations, filing articles of incorporation and bylaws and terms of original stock certificates.

Maintaining liquid-able assets or cash in hand is essential for emergency purposes.