There's more to starting a business than having an idea, endless coffee supply and lots of passion. In the thrill of starting something new or fresh, it's common for newbie entrepreneurs to jump into the action and forget about accounting for startup costs.
If you don't meticulously plan for expenses you'd incur when you begin, you could be risking your business's future and longevity. Also, knowing how much it costs to start a small business will help you see if you can bootstrap your way into entrepreneurship or will you need some additional funding.
While startup costs can vary based on the type of business, there are common expenses all business owners will face. So what should startup costs include? Here are common business startup costs and how to estimate them:
The Bottom Line on Business Startup Costs
Here's the takeaway — startup costs will vary greatly based on the business you want to begin. Stepping into entrepreneurship is invigorating and it can seem a bit boring to sit down and crunch numbers. But, look at it this way — by being realistic about your startup business expenses, you're essentially paving a path for success.
If you're unsure about calculating business startup costs, we'd recommend working with a new business expert. Incfile can help you identify, plan for and search for funding for costs you're likely to encounter as a budding business owner. Opting to legally form an LLC with us is one way you can minimize your startup expenses. We'll file the Articles of Incorporation for free (just state fees).
Swara Ahluwalia is a freelance content writer with experience in the technical, B2B and SaaS domain. She also has curated content for various lifestyle brands. In her downtime, you will most likely find Swara training for her next marathon or spending time with her two daughters.