Business Start-Up and Rent: 4 Costs You Can Expect
1. Legal/Licensing Costs: These can be pretty substantial depending on whether you are buying a franchise or not. The largest cost would be your franchise fee. Then you have to consider what license and permits you will need to operate your business and whether you will be incorporating or not. And of course there is always the lawyer’s fee.
2. Building and Supplies: This is another large investment for business start-up and rent. You will need to find a place to lease or purchase for your business. Depending on the space, remodelling may be required. Then there is all of your equipment, office supplies, furniture, inventory and signage. Don’t forget to consider whether or not you will need a company vehicle. You will also need to pay set-up fees for your utilities.
3. Operating Cash: The majority of new businesses are not profitable in the first few months, sometimes the first year because they have accumulated so much debt to get off the ground that there is nothing left over for profit. Because of this it is important to have enough operating cash to cover transactions, inventory replenishment and salaries for the first few months.
4. Marketing Costs: It is great to have your own business but if you do not have a marketing plan and budget it will be very hard to get exposure for your business. Marketing costs should always be included in business start-up and rent considerations. You will want to advertise locally through paper ads, radio and classifieds. Don’t forget about the Internet. Today’s consumers are online and if you can not be found on the World Wide Web than you are missing out on a huge segment of the population. Internet marketing, if done properly, can give you far more leads than traditional methods.
The Cheapest Way To Have Your Own Business
When all of the business start-up and rent costs are taken into account many people end up holding off on their dreams of having their own business until they are in a better financial situation. If you want to begin your own business but can not afford the start-up costs you may want to look online. Many people are turning to the Internet for a home based business. An Internet based business is defiantly the way to go. It is recession proof since the internet does not depend on the economy to thrive, it has very low start up costs, it requires no special licenses or permits plus you can run your business out of the comfort of your own home. This is also a great way to receive wonderful tax benefits since your home is also your place of work.