By Evan Vitale
This is the second of three parts in starting a new business.
You can read Part I here: https://evanvitale.com/evan-vitale-starting-a-new-business-part-i/
While you might have a great idea for starting a new business, perhaps the biggest obstacle standing in your way is capital and having a true idea of what it will get in order to get things rolling.
This is extremely important. Find out what your start-up costs will be (i.e., rent, security deposits, utilities, equipment, furniture, employees, etc.) and what your month-to-month expenses will be (even if your revenues are $0). Calculate how much in revenue will you need to earn each month in order to break even, but make sure you pay yourself.
Start-up costs vary from business-to-business. For example, you’ll save a lot in overhead costs if you can work from home. However, you may have to check local zoning laws to confirm your business is suitable for a work-at-home situation. In addition, you may need state, county and local business licenses before you begin.
All start-up costs and monthly business expense projections should be calculated before you begin. This should be included as part of your business plan. Review expenses with your accountant, banker or another business association for accuracy. You don’t want to be surprised by a major hidden expense once you are on the road to starting your new business.
* * *
Connect with Evan Vitale on his LinkedIn page.