12 Months to Startup

Month 4: Calculate the costs.

It's critical to determine how much cash you'll need. Create a checklist of expenditures. List the equipment, supplies and people needed to operate your business. Itemize startup costs for inventory, signage, sales and marketing literature or tools, research, licenses, permits, operating capital, and legal or professional fees. Calculate your monthly overhead for rent, supplies, utilities, business and health insurance, taxes, Internet access and other services. Factor in your salary and employee or contractor wages. Refer to industry specific startup books and resources for additional costs that may apply to your respective business type. Tally and double-check the numbers before you begin your money hunt.

Resource Guide

  • Use Entrepreneur.com FormNet to help you figure your startup finances.
  • Entrepreneur magazine's What If? software allows you to easily forecast your new business's finances, calculating the numbers for you and generating charts and graphs you can use in your business plan.

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