Setting a new business up is both exciting and nerve-wracking. One the one hand, it can be a lot of fun to create a company in your own image. On the other, there comes the uncertainty of knowing if your new enterprise will be a success. Part of making your business work is accounting for all the startup expenses, but what are they?
The first is to pay for marketing material. This includes a website, business cards, flyers or leaflets, advertisements and social media. Social media and websites can come for free, but for a bespoke domain name e.g. mynewbusiness.com, you need to pay a little money. Printed material can be done at home, but you would need to buy paper, card and printer ink.
A Place to Work
Another important startup cost is office or warehouse space. Depending on what your new business does, you could work from home to save money. However, if you have a lot of products to sell, a base for your business needs to be paid for.
Ideally, your new office should have room for yourself and a few other employees, storage space and a spot for the company car or van. It should also be easy to access for you and any clients you need to meet in person. Looking at industrial units to let with LCP will help you to know what sort of workspace you can afford.
Alongside a workspace, startups should also budget for a company vehicle. Again, this depends on what your business does, but if you have to deliver to clients or meet customers based several miles from your office, make sure you have one. A large estate car would work well for deliveries and driving in comfort. Insurance and road tax need to be paid for as well.
If you are working by yourself, you won’t need to worry about paying extra employees. For those startups that need expertise in areas like accounting and sales, there are salaries to budget for, as well as associated taxes. UK businesses need to register for National Insurance, where they pay a percentage of their employees’ contributions.
Buying technology is another major expense for startups. As a minimum, a phone and computer will be needed for communicating with clients and the wider world. For an office, furniture, printers and an internet connection are all essential. Safety equipment needs to be added too, such as fire alarms and security alarms.