Initial costs are one-time and recurring expenses that are needed to set your business in motion. There’s no way you can start and build a successful small business if you don’t have the funds to back it up. Start by making a list of ALL your initial costs, no matter how small or insignificant.
- name and entity registration with the Secretary of State
- legal fees
- licenses and permits
- rent and security deposit
- building/remodeling if appropriate
- initial product inventory
- furniture and equipment
It’s not enough to consider how much a large piece of machinery costs. You also need to think about the costs involved with transporting it or setting it up. Everything needs to be accounted for. Then consider your ongoing costs (expenses you anticipate paying again and again), such as rent and utilities. Once you know what it may cost to start your business you can decide whether to move forward or wait awhile.