Start-up costs*
Our start-up calculator can help you decide whether your idea will make money
before you invest your time and capital.
Our start-up cost calculator can help you decide how much money
you’ll need to have before you start up your new business.
What does the start-up costs calculator do?
Many businesses fail because they don’t have sucient cash to last
until they become protable – a mistake easily remedied with our
simple start-up costs calculator.
This tool addresses two key nancial areas that must be examined
in order to make the smartest business decision. They are:
• Initial costs
• Working capital
Tallying costs
All start-ups have start-up costs, followed by running costs. Your
initial costs include expenses associated with starting your business
such as:
• Equipment and assets – such as vehicles and furniture.
• Oce equipment – such as computers, telephone systems,
copiers, and water coolers.
• One-time costs – such as franchise fees, rent deposit, initial
lease payments, legal fees, and initial stock.
While these costs won’t necessarily repeat in the near future, your
business will incur other operational costs on an ongoing basis. Your
running costs are those that you’ll incur regardless of whether you
make a sale or not.
Examples of running costs include:
• Rent
• Insurance
• Advertising
• Utilities
• Phone and Internet services
• Salary and payments to subcontractors
• Postage
The start-up costs calculator prompts you to enter both initial (or
capital) costs and your monthly running costs. You’ll also need
to make an estimate of the time you think it will take before your
business becomes protable. This helps to calculate an estimate of
the amount of cash you’ll need to cover your running costs.
Once you’ve entered your estimated costs and revenue gures,
the calculator presents you with a summary estimating how much
money you need to get started, how much money you’ll need to run
your business on a monthly basis, and how much cash you’ll need
to survive until the business becomes protable.
Why use the start-up costs calculator?
The start-up costs calculator can save you a great deal of money
and heartache if you don’t have sucient reserves to survive the
crucial start-up period. Wouldn’t you rather work it out on paper than
nd out the hard way?
It will also help you make your case should you seek a small
business loan or a relationship with private investors.
