Do you know what the set up costs are likely to be? Here are 10 business set-up costs to keep in mind when you’re ready to get started.
>Will you need equipment to operate your business? You will need a computer, and equipment for your type of business. You might even need a vehicle to get around. You will probably need to purchase some new equipment, or you may be able to get a better deal by purchasing some second-hand.
Some of Loans One’s lending partners will finance used or refurbished equipment, so keep all of your options on the table and be able to have those conversations before you make a decision.
Your shopping list might include:
- Specialist equipment for your business type
- Till and cash draw;
- Point-of-sale (POS) software; and
There are certain fees which go hand-in-hand with starting a business, like business registration fees and insurance. However, here is a short list…
Be mindful of the following fees:
- Company set-up fees;
- Public liability;
- Professional indemnity;
- License costs.
For License costs we recommend visiting the Australian Business License and Information Service (ABLIS) website and consulting your lawyer.
Office space or retail space
Here are some costs if you rent a business premises:
- Fit out;
- Architectural costs;
- Building costs;
- Lease agreements;
- Stamp duty; and Bond.
If you are considering buying your office or retail space, there are small business lenders that are able to finance projects like this.
Here are some things to think about when looking at the cost of stock or supplies:
- How much stock will you need to get your business up and running?
- How long will your stick supplies last? When will you need to re-order?
- What trade terms will you be able to get?
- Will you need to finance your inventory?
Hiring an accountant is a must, as is getting a lawyer for crafting service agreements and reviewing contracts. An IT expert is often vital for many start-up businesses now too.
Advertising and marketing
Promotional costs can be expensive if you don’t plan ahead, and you can spend endless amounts of money trying to get your business out in the market.
Here are some costs that you may want to keep in mind:
- Logo design;
- Business cards;
- Printing of menus, posters or leaflets;
- Creation of website;
- Set-up of social media accounts;
- Domain name registration;
- Domain hosting;
- Google AdWords and Facebook advertising.
Staff will be one of your biggest ongoing costs. With that comes Work cover superannuation, so it’s worth spending some time calculating the true cost of employing staff before you begin your recruitment drive.
Here are some of the costs you may need to factor in:
- Recruitment costs;
- Wages and payroll;
- Payroll; and
Most businesses need utilities to run. Consider what it might cost you to pay the following:
- Mobile phones;
Speak to an accountant about the taxes that you may be liable for when you start trading. You will probably need to charge and collect GST. If you don’t fully understand your obligation, you may find yourself with a large tax bill at the end of the financial year.
How much working capital (available cash) are you going to need to keep your business running? For example, you may need $40,000 on hand to pay employees and buy stock. If you don’t carefully calculate this, it may come as a surprise later on and it could all end in tears.
This is where Loans One comes in.
With us you have many options available. One option is invoice financing. If you have invoices outstanding and are waiting for your customers to pay you, this can be a great short-term way of keeping your business afloat. Some lenders will fund your invoices so you have the cash today, and can utilise it while you wait for your customers to pay.
Alternatively, a secured short term business loan or caveat loan may be just what you need to help you get started, and provide working capital. Short term Caveat Loans are perfect for business start ups as you don’t need to show financial records or trading history. You just need equity in a piece of real estate. Its no different to going to then bank for a loan, but with out all the delays and paperwork.
If you find you cannot meet your financial obligations, seek advice early. Loans One has a team of finance specialists on-hand, so feel free to give us a call and we can talk you through your options.