It is really easy to underestimate Startup costs. You will have to think of all running costs for the first 12 months, but also costs that incur before your business has even opened its doors.
These are the costs that happen before your business starts trading. There are 3 types of costs a company will usually have prior to launch:
These can range from design work such as logo, website and brochures to legal work.
This will include equipment such as desks, licences and insurances.
If these are not a necessity for your business to launch, they are best avoided. They can be one of the biggest cost, as they often include deposit, upfront rent, refit/redecoration, making safe, secure & legally compliant.
It is best to cover the entire first year of trading in your calculation. You should include all recurrent costs such as mortgage repayments, bills, insurance, wages and associated taxes.
It is always best to plan for the unexpected. This can be a contingency fund for unforeseen events, but it can also serve to cover some of the overheads you may not have accounted for. For example, when hiring staff, you not only have to pay for their wages and associated taxes, you will also have to account for job adverts, training, equipment such as uniforms, computer, etc.
Now you have calculated your startup costs, you will have to focus on getting the financing. There are many possible options:
Find out more on How to Finance your Company.