Disclaimer
Please note that the information provided isn’t intended and should not be relied upon as professional or personal nancial
product advice. You should seek professional advice before making any decision that could aect the nancial health of your
business. Source TSBC.com.
The 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.
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 (running costs for a number of
months).
Totaling 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 survice until the
business becomes protable.
Start-up costs