• Login
  • Register
en
afsqam ar hy az eu be bn bs bg ca ceb ny zh-CN zh-TWco hr cs da nl en eo et tl fi fr fy gl ka de el gu ht ha haw iw hi hmn hu is ig id ga it ja jw kn kk km ko ku ky lo la lv lt lb mk mg ms ml mt mi mr mn my ne no ps fa pl pt pa ro ru sm gd sr st sn sd si sk sl so es su sw sv tg ta te th tr uk ur uz vi cy xh yi yo zu
Victor Mochere
No Result
View All Result
  • Business
  • Finance
    Top 10 oldest currencies in the world

    Top 10 oldest currencies in the world 2023

    Top 20 largest endowment funds in the world

    Top 20 largest endowment funds in the world 2023

    Criteria banks use to issue business loans

    Criteria banks use to issue business loans

    Top 20 largest bond markets in the world

    Top 20 largest bond markets in the world 2023

    Top 10 cities with the most millionaires in Africa

    Top 10 cities with the most millionaires in Africa 2023

    Top 10 countries with the most millionaires in Africa

    Top 10 countries with the most millionaires in Africa 2023

    How to become a millionaire

    How to become a millionaire

    How to simplify your finances using technology

    How to simplify your finances using technology

    Top 10 best personal finance apps

    Top 10 best personal finance apps 2023

    Guide to altcoins for beginners

    Guide to altcoins for beginners

    Things to consider when choosing a forex broker

    Things to consider when choosing a forex broker

    Top 20 cities with the most millionaires in the world

    Top 20 cities with the most millionaires in the world 2023

    Top 10 richest YouTubers in the world

    Top 10 richest YouTubers in the world 2023

    MrBeast Net Worth

    MrBeast Net Worth 2023

    Top 10 fastest growing economies in Africa

    Top 10 fastest growing economies in Africa 2023

    Top 10 richest real estate billionaires in the world

    Top 10 richest real estate billionaires in the world 2023

    Top 10 richest media billionaires in the world

    Top 10 richest media billionaires in the world 2023

    Sundar Pichai Net Worth

    Sundar Pichai Net Worth 2023

    Top 10 richest retail billionaires in the world

    Top 10 richest retail billionaires in the world 2023

    Rishi Sunak Net Worth

    Rishi Sunak Net Worth 2023

  • Education
    E-learning tools that address learning challenges

    E-learning tools that address learning challenges

    Top 10 best success books

    Top 10 best success books 2023

    Types of insurance to consider for college students

    Types of insurance to consider for college students

    Best self-guided tech courses

    Best self-guided tech courses 2023

    How to check for plagiarism

    How to check for plagiarism

    Benefits of poetry

    Benefits of poetry

    How to introduce education to your child with ADHD

    How to introduce education to your child with ADHD

    Reasons to practice creative writing

    Reasons to practice creative writing

    How to write a good essay for TOEFL

    How to write a good essay for TOEFL

    How learning leads to healthy living

    How learning leads to healthy living

    Top 10 best data science books

    Top 10 best data science books 2023

    Best quotes from PLO Lumumba

    Best quotes from PLO Lumumba

    Best quotes from Amin Maalouf

    Best quotes from Amin Maalouf

    How to write a good thesis

    How to write a good thesis

    Best quotes from Michael Faraday

    Best quotes from Michael Faraday

    Top 20 greatest minds of all time

    Top 20 greatest minds of all time

    Best quotes from Voltaire

    Best quotes from Voltaire

    Best quotes from Chinua Achebe

    Best quotes from Chinua Achebe

    How language skills increase your net worth

    How language skills increase your net worth

    How to get free textbooks

    How to get free textbooks

  • Travel
  • Technology
    How to tell if your phone is SIM locked

    How to tell if your phone is SIM locked

    Things to consider when buying a laptop

    Things to consider when buying a laptop

    How to improve your smartphone battery life

    How to improve your smartphone battery life

    How to create a successful social media strategy

    How to create a successful social media strategy

    How to stay relevant on social media

    How to stay relevant on social media

    How to make money with AI

    How to make money with AI

    How to make money with ChatGPT

    How to make money with ChatGPT

    Common SEO mistakes

    Common SEO mistakes

    How to optimize your WordPress website

    How to optimize your WordPress website

    Top 10 best nursing apps

    Top 10 best nursing apps 2023

    Benefits of digital PR

    Benefits of digital PR

    Facets of digital marketing

    Facets of digital marketing

    Digital marketing strategies for beginners

    Digital marketing strategies for beginners

    How to check supported sleep states on Windows

    How to check supported sleep states on Windows

    How to make your Windows PC boot quicker

    How to make your Windows PC boot quicker

    Guide to Python OCR for beginners

    Guide to Python OCR for beginners

    Different types of internet connections

    Different types of internet connections

    History and evolution of DAOs

    History and evolution of DAOs

    How to secure your online accounts

    How to secure your online accounts

    Future of content writing with AI technology

    Future of content writing with AI technology

  • Living
    Top 10 largest uranium reserves in the world

    Top 10 largest uranium reserves in the world 2023

    Top 10 largest uranium mines in the world

    Top 10 largest uranium mines in the world 2023

    How to prevent electronics from blowing up

    How to prevent electronics from blowing up

    How to increase your Fuliza limit

    How to increase your Fuliza limit

    Understanding the eagle mentality

    Understanding the eagle mentality

    Understanding the lion mentality

    Understanding the lion mentality

    How to boost your self-confidence

    How to boost your self-confidence

    Top 10 saddest countries in Africa

    Top 10 saddest countries in Africa 2023

    Top 20 saddest countries in the world

    Top 20 saddest countries in the world 2023

    Top 10 happiest countries in Africa

    Top 10 happiest countries in Africa 2023

    Top 20 happiest countries in the world

    Top 20 happiest countries in the world 2023

    Things to consider when buying an equestrian estate

    Things to consider when buying an equestrian estate

    Things to consider when choosing a dog groomer

    Things to consider when choosing a dog groomer

    Top 10 greatest engineers of all time

    Top 10 greatest engineers of all time

    Types of women that can ruin your marriage

    Types of women that can ruin your marriage

    7 C's of success

    7 C’s of success

    Best quotes from Brian Tracy

    Best quotes from Brian Tracy

    Compulsory land acquisition in Kenya

    Compulsory land acquisition in Kenya

    How to amalgamate land in Kenya

    How to amalgamate land in Kenya

    How to subdivide land in Kenya

    How to subdivide land in Kenya

  • Entertainment
    Top 20 best-selling video games of all time

    Top 20 best-selling video games of all time

    Top 20 most complex movies of all time

    Top 20 most complex movies of all time

    Best quotes from Whitney Houston

    Best quotes from Whitney Houston

    Top 10 most rewatchable movies

    Top 10 most rewatchable movies 2023

    Best quotes from Denzel Washington

    Best quotes from Denzel Washington

    Snack ideas for an online gaming night

    Snack ideas for an online gaming night

    Best quotes from Frank Sinatra

    Best quotes from Frank Sinatra

    Roku vs Amazon Fire Stick: Which is better?

    Roku vs Amazon Fire Stick: Which is better?

    Top 20 highest paid entertainers in the world

    Top 20 highest paid entertainers in the world 2023

    Best quotes from Shonda Rhimes

    Best quotes from Shonda Rhimes

    Best poker tips for beginners

    Best poker tips for beginners

    Top 10 best budget wireless headphones

    Top 10 best budget wireless headphones 2023

    Best quotes from Betty White

    Best quotes from Betty White

    History of the slot machine

    History of the slot machine

    The art of gambling

    The art of gambling

    Free internet TV channels you can watch online

    Free internet TV channels you can watch online

    Top 10 most Grammy Awards nominees of all time

    Top 10 most Grammy Awards nominees of all time

    Top 10 most Grammy Awards winners of all time

    Top 10 most Grammy Awards winners of all time

    Why casino whales prefer to play online baccarat

    Why casino whales prefer to play online baccarat

    Benefits of using an online video editor for your vlog

    Benefits of using an online video editor for your vlog

  • Governance
    Members of Parliament in Kenya

    Members of Parliament in Kenya 2023

    Principal Secretaries in Kenya

    Principal Secretaries in Kenya 2023

    Cabinet Secretaries in Kenya

    Cabinet Secretaries in Kenya 2023

    Top 10 ruthless African warlords of all time

    Top 10 ruthless African warlords of all time

    Best quotes from Kwame Nkrumah

    Best quotes from Kwame Nkrumah

    What you need to know about IEBC forms

    What you need to know about IEBC forms

    Top 20 largest empires of all time

    Top 20 largest empires of all time

    Diplomatic number plates in Kenya

    Diplomatic number plates in Kenya

    Best quotes from Marcus Aurelius

    Best quotes from Marcus Aurelius

    Best quotes from Vladimir Lenin

    Best quotes from Vladimir Lenin

    Best quotes from John Magufuli

    Best quotes from John Magufuli

    Best quotes from Volodymyr Zelenskyy

    Best quotes from Volodymyr Zelenskyy

    Best quotes from Vladimir Putin

    Best quotes from Vladimir Putin

    Best quotes from Angela Merkel

    Best quotes from Angela Merkel

    Top 20 countries with the most debt in the world

    Top 20 countries with the most debt in the world 2023

    Top 10 least indebted countries in Africa

    Top 10 least indebted countries in Africa 2023

    Top 10 most indebted countries in Africa

    Top 10 most indebted countries in Africa 2023

    Top 20 least indebted countries in the world

    Top 20 least indebted countries in the world 2023

    Top 20 most indebted countries in the world

    Top 20 most indebted countries in the world 2023

    Monarchs of Britain

    Monarchs of Britain

  • Sports
    Best quotes from Pelé

    Best quotes from Pelé

    How to bet on the NFL

    How to bet on the NFL

    How to bet on the Breeders' Cup

    How to bet on the Breeders’ Cup

    Types of swimming styles and strokes

    Types of swimming styles and strokes

    Benefits of swimming

    Benefits of swimming

    Safety rules every swimmer should follow

    Safety rules every swimmer should follow

    Must-have equipment for softball coaches

    Must-have equipment for softball coaches

    How to take advantage of changing odds

    How to take advantage of changing odds

    Guide to baseball betting

    Guide to baseball betting

    Top 10 most watched sporting events of all time

    Top 10 most watched sporting events of all time

    Top 10 highest paid NFL players

    Top 10 highest paid NFL players 2023

    Top 10 richest sports leagues in the world

    Top 10 richest sports leagues in the world 2023

    Top 10 most popular sports in the world

    Top 10 most popular sports in the world 2023

    Top 10 highest paid NHL players in the world

    Top 10 highest paid NHL players in the world 2023

    Top 10 football players with the most free kick goals

    Top 10 football players with the most free kick goals 2023

    Slam Dunk: How to become an NBA betting pro

    Slam Dunk: How to become an NBA betting pro

    History of badminton in the Olympic Games

    History of badminton in the Olympic Games

    Top 10 most lucrative football shirt sponsorships

    Top 10 most lucrative football shirt sponsorships 2023

    Top 10 countries with the least Olympic medals in Africa

    Top 10 countries with the least Olympic medals in Africa 2023

    Top 20 countries with the least Olympic medals in the world

    Top 20 countries with the least Olympic medals in the world 2023

en
afsqam ar hy az eu be bn bs bg ca ceb ny zh-CN zh-TWco hr cs da nl en eo et tl fi fr fy gl ka de el gu ht ha haw iw hi hmn hu is ig id ga it ja jw kn kk km ko ku ky lo la lv lt lb mk mg ms ml mt mi mr mn my ne no ps fa pl pt pa ro ru sm gd sr st sn sd si sk sl so es su sw sv tg ta te th tr uk ur uz vi cy xh yi yo zu
Victor Mochere
No Result
View All Result
en
afsqam ar hy az eu be bn bs bg ca ceb ny zh-CN zh-TWco hr cs da nl en eo et tl fi fr fy gl ka de el gu ht ha haw iw hi hmn hu is ig id ga it ja jw kn kk km ko ku ky lo la lv lt lb mk mg ms ml mt mi mr mn my ne no ps fa pl pt pa ro ru sm gd sr st sn sd si sk sl so es su sw sv tg ta te th tr uk ur uz vi cy xh yi yo zu
Victor Mochere
No Result
View All Result
Home Business

Common startup expenses to consider

Victor Mochere by Victor Mochere
May 31, 2023
in Business
Reading Time: 4 mins read
A A
0
Common startup expenses to consider

Starting a small business can be exciting. However, this excitement is often accompanied by fear of failure. Many entrepreneurs worry about the financial burden of running a new business. After all, it takes money to make money. The early stages of building a business are especially financially demanding. Without careful planning and meticulous accounting, many first-time entrepreneurs are caught unawares by a number of start-up costs.

New entrepreneurs assume that by focusing on selling, they can manage to keep the operation afloat, usually with abysmal results. It’s important to note that all businesses are different and therefore have different kinds of start-up costs. For instance, online businesses have different needs compared to brick-and-mortar businesses. That said, there are some common start-up expenses that every entrepreneur should be aware of before venturing into a new business.

1. Research expenses

Market research is usually one of the first expenses for any kind of business. During this phase, you research on the viability of your idea, your target customers, how to market your product, how to brand your business effectively and so on. Skipping this important step in starting a business can be costly in the long run.

It can lead to indecision and inaction as you’re unprepared for different scenarios that might challenge your business. Some business owners choose to do market research all by themselves, while others pay market research firms to assist them. Of course, if you choose to hire a firm, this is a cost that you have to include in your business budget.

2. Borrowing costs

Most entrepreneurs rely on business loans to start their businesses. These loans are accompanied with interest payments. If you don’t take loan interests into account when budgeting, they might be one of those costs that catch you by surprise and derail your business success. The real cost of taking a loan involves much more than just the interest rates.

There are various monetary and nonmonetary costs you should consider before signing the dotted line of the loan papers. Think of the direct financial costs (such as interest rates, points, penalties and required account balances), indirect costs and loan conditions (such as periodic financial reporting, maintenance of certain financial covenants and subordination agreements) and personal guarantees needed to obtain the loan.

Shop around for a bank that offers the best rates. Don’t assume that the rates are set in stone – in many cases, you can negotiate a lower rate. Although the negotiable range is often very small, every bit you save for your startup counts. After acquiring the loan, make sure to always make your payments in time to avoid expensive penalties.

3. Equipment and supplies

Every good business plan includes equipment and supplies that the business will need in its operations. For instance, if you’re starting a courier business, you will have to invest in some form of transport such as motorbikes, a car, or a truck. If you’re opening a hair salon, you will need hair dryers, hair oils, and hair treatments.

Depending on your industry, the kind of equipment or supplies you need can be one of the major expenses at the beginning. Acquiring the needed equipment is probably the reason many entrepreneurs take business loans. If the equipment is too expensive to buy at the beginning, consider options such as leasing. No matter how you finance, this should be an area that you prioritise in your budget.

4. Marketing and advertising

A new business is unlikely to succeed without any form of promotion. Promoting a business includes everything that a company does to attract customers or clients. This might include paying for social media ads, advertising in mainstream media, investing in banners, creating business cards and so on. If it is your first ride on the rodeo, you can easily end up making costly blunders with poor marketing strategies.

For instance, you might get excited about seeing your product on a billboard but fail to consider its ROI (return on investment). At the beginning, every expense should be highly calculated. If you can afford it, consider hiring a marketing firm to help you create effective marketing campaigns.

5. Technology costs

Today’s world is highly digital and to maximise your business success, you will have to invest in building an online presence. Expenses under this umbrella include paying for the creation and maintenance of a website, setting up information systems, and acquiring necessary software for your business. You can save up on technology-associated costs by doing some of the work yourself.

For example, you don’t need to be an IT guru to create a WordPress site or run your business’ social media platforms. Other budget-friendly options include outsourcing to relatively cheap freelancers. You can ask your network to recommend competent freelancers or use sites such as Fiverr and Indeed to find people to work with.

6. Employee costs

If you are planning to hire employees to help you grow your business, you must budget for the cost of wages, salaries, stipends, commissions, overtime pay and other benefits. If you don’t remunerate your employees competitively, it can lead to low morale, lack of commitment, bad publicity and high turnover – all of which can be disastrous to a business. Additionally, you need to allocate some funds to pay yourself.

You might find it difficult to decide how much you need to pay yourself. Determine a realistic amount to withdraw from the business to live on. The goal is to pay yourself enough to sustain both your lifestyle and the business. Include this figure into your monthly budget and as much as possible, avoid taking any extra funds from the business for personal use.

Tags: ExpensesStartups
Previous Post

Key principles you need for business success

Next Post

Efficient ways of long-term cost cutting

Victor Mochere

Victor Mochere

Victor Mochere is a blogger, social media influencer, and netpreneur creating and marketing digital content.

Next Post
Efficient ways of long-term cost cutting

Efficient ways of long-term cost cutting

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trending Posts

  • Top 20 countries with the most debt in the world

    Top 20 countries with the most debt in the world 2023

    1 shares
    Share 0 Tweet 0
  • Educational mobile app features that boost the learning process

    1 shares
    Share 0 Tweet 0
  • How to activate Microsoft Office on Mac for free

    1 shares
    Share 0 Tweet 0
  • Top 10 most protected people in the world 2023

    6 shares
    Share 0 Tweet 0
  • Top 10 best gay dating apps 2023

    4 shares
    Share 0 Tweet 0

Find us on

Newspaper Flipboard

Download our app

Google-play Microsoft Amazon Shopping-bag

Newsletter

Follow us

Facebook-f Twitter Instagram Pinterest Linkedin Youtube Tiktok Snapchat-ghost Telegram Rss
Victor Mochere

Victor Mochere is one of the biggest informational blogs on the web. We publish well curated up-to-date facts and important updates from around the world.

Recent posts

  • Top 10 largest uranium reserves in the world 2023
  • Top 10 largest uranium mines in the world 2023
  • How to dissolve a company in Kenya
  • How to prevent electronics from blowing up
  • How to increase your Fuliza limit

Sections

  • Business
  • Education
  • Entertainment
  • Finance
  • Flacked
  • Governance
  • Living
  • Sports
  • Technology
  • Travel

Download our app

Google-play Microsoft Amazon Shopping-bag

Find us on

Newspaper Flipboard
  • Advertise
  • Disclaimer
  • Cookies
  • Privacy Policy
  • Copyright
  • DMCA
  • Write For Us
  • Send us a topic
  • Contact

© 2023 Victor Mochere. All rights are reserved.

en
afsqam ar hy az eu be bn bs bg ca ceb ny zh-CN zh-TWco hr cs da nl en eo et tl fi fr fy gl ka de el gu ht ha haw iw hi hmn hu is ig id ga it ja jw kn kk km ko ku ky lo la lv lt lb mk mg ms ml mt mi mr mn my ne no ps fa pl pt pa ro ru sm gd sr st sn sd si sk sl so es su sw sv tg ta te th tr uk ur uz vi cy xh yi yo zu
  • Login
  • Sign Up
No Result
View All Result
  • Sections
    • Finance
    • Education
    • Technology
    • Living
    • Entertainment
    • Governance
    • Sports
  • About
  • Editor-in-Chief
  • Donate
  • Sitemap
  • Crossword
  • Social Media Policy
  • Corrections Policy
  • Comment Policy

© 2023 Victor Mochere. All rights are reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In