How much money do you really need to start your business?
You’re confident you’re sitting on the next million-dollar idea. Whether you’ve already secured funding or just trying to figure out what it will take to get started, an accurate estimate of start-up costs is necessary to reasonably predict financial performance in the first few quarters. Of course every business and every industry have different cost requirements, but these steps can help you start the number-crunching.
Determine Your Start-Up Cost Structure: Running your own software company is going to have different start-up requirements than opening a pet store, for example. Startupnation.com says there are six cost categories for new companies:
- Cost of sales
- Professional fees