Switching from a full-time job to starting your own business will be an important moment of your life, but you should be aware that the number of responsibilities you’ll have to care for will increase as well. If you don’t want to be caught up by surprise during the first stages as an entrepreneur, here are 8 of the most important start-up costs that you should expect.
1. Logo Design. Your business must have its personality and as a result, branding will be one of the key tasks to handle. People usually think about complex strategies when it comes to this matter, but designing a logo will mostly solve your branding problems. Think about something simple that communicates what kind of products/services you offer and at the same time, it’s very catching. Luckily, there are so many logo design tools, that you won’t need to pay for a specialist.
2. Advertising. The wide public must know about your business and what you have to offer. In the beginning, you will rely on your friends and family, but as you expand, an advertising budget will be very important. Social media advertising proves to be a convenient and efficient method. Reaching people on Facebook, Instagram, or Pinterest will be important, but at the same time, it will cost you money.
3. Website Management. Although there are still many businesses that claim there’s no need for a website, in reality, it can be a good platform to reach clients and provide them with assistance. You can build a blog and provide valuable material, or advertise your products. Some of the tasks are not hard, but still, you’ll have to be ready for costs related to web hosting or other website maintenance activities.
4. Utilities. If you’ll have a commercial office, paying bills for electricity, internet, water, phone bills will be part of your monthly routine. Take these expenses into account seriously, given the potential impact on your budget. You’ll need to have cash flow and generate sales, to meet all your obligations.
5. Employment Costs. A company is a team of people working for the same goal. No matter the country you live in, employment costs will represent another important monthly expense that you need to take into account. As long as your employees do their work, you have to compensate them accordingly.
6. Inventories. In case you sell physical products, you’ll need some form of inventory, to satisfy all potential customers. Finding the best suppliers and at the same time, the right level of inventories will require you to do constantly adapt to the market’s needs.
7. Market Research. The world of business is a competition and you will constantly need to be one step ahead of everybody else. That means you’ll need to allocate capital for market research and see how the clients’ need change over time. Whether is through online tools or specialized people, you’ll have to invest in order to have an edge.
8. Equipment. Increasing productivity won’t be possible without the most efficient equipment. Even though it won’t be possible to buy them all at once, make sure that you will invest a share of the revenue in some of the best tools.