No one business is the same as another even if the product or service is similar.
Start-up costs are limited to expenditure incurred before you are ready for business on the first day. They don’t include the running costs, the cost of owners’ remuneration or any initial costs not incurred before trading commences. For this the business will need to calculate the ‘working capital requirement. The business should have a cash flow plan (a money map) prepared in order to identify how much working capital funding the business requires. It is a fact that customers don’t always pay when they should and suppliers to new businesses press hard for prompt payment.
In this guide, we list all of the common costs associated with starting a new business – download the guide today.