How to estimate the cost of your start-up

How to estimate the cost of your start-up

One of the most important things to understand while you are ready to venture into any new business is how to create a budget for the new company. There will be expected income with unexpected expenses and cash needs.

Since you have no past information for a start up, you must create the budget. Focus on how-to factors with an inventory of products and make sure to discuss with experts who will help you create a Startup business plan.


The key to a successful business is having the perfect preparation. Before your business opens its doors, or even before it is launched, make sure you know that when and how you are going to pay the bills.

Calculating startup costs will help you to -

  • Estimate revenue and profits
  • Secure loans
  • Do an accurate breakeven analysis
  • Attract funders and investors
  • Save money with tax deductions

Most businesses fall into one of three categories: brick-and-mortar businesses, online businesses, and service providers. There will be different sba business plan depending on your business type.

There are some common startup expenses that will be there irrespective of what you are venturing into. They include but not limited to -

  • Office space
  • Equipment and supplies
  • Communications, Licenses and permits
  • Insurance
  • Lawyer and accountant, Utilities
  • Inventory
  • Employee salaries
  • Market research, Advertising and marketing
  • Making a website and maintaining it

Estimate how much your expenses will cost

With ready list of expenses, it will be pretty easy to estimate how much they’ll actually cost.

There will be some well-defined expenses such as permits and licenses. They have clear, published costs. the other lesser certain costs include employee salaries, perks and likewise. Ideally you can talk directly to mentors, vendors, and service providers to find out the industry standards.

Add up your expenses

To get a complete financial picture, make sure to identify and work on your business expenses. Organize your expenses into one-time expenses, monthly expenses or any other sort of recurring expenses.

One-time expenses can be like buying major equipment, hiring a designer to create a website or logo, paying for permits, licenses, and fees. Typically, these can be deducted for tax purposes. Monthly expenses will be salaries, rent, and utility bills. Do not count for a year but at least for five years.

It’s a wise idea to create a formal report for all sorts of expected startup costs.

To create a format that’s clear and easy to understand, you will need expert help. Visit to get in touch with the team of expert plan writers who can chart a plan that is sleek, to-the-point and also attractive in the eyes of the investors.