Friday, December 9, 2011

Start Up Costs

What is the cost of owning your own business? Luckily, Amanda Webber at Start Up Nation has some of this figured out for you.
Costs for a startup business can be divvied up into six major categories:
  1. Cost of sales: Product inventory, raw materials, manufacturing equipment, shipping, packaging, shipping insurance, warehousing
  2. Professional fees: Setting up a legal structure for your business (e.g. LLC, corporation), trademarks, copyrights, patents, drafting partnership and non-disclosure agreements, attorney fees for ongoing consultation, retaining an accountant
  3. Technology costs: Computer hardware, computer software, printers, cell phones, PDAs, website development and maintenance, high-speed internet access, servers, security measures, IT consulting
  4. Administrative costs: Various types of business insurance, office supplies, licenses and permits, express shipping and postage, product packaging, parking, rent, utilities, phones, copier, fax machine, desks, chairs, filing cabinets – anything else you need to have on a daily basis to operate a business
  5. Sales and marketing costs: Printing of stationery, marketing materials, advertising, public relations, event or trade show attendance or sponsorship, trade association or chamber of commerce membership fees, travel and entertainment for client meetings, mailing or lead lists 
  6. Wages and benefits: Employee salaries, payroll taxes, benefits, workers compensation
We are ready to show you how you can get grants to fund your new venture!

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