BUSINESS

How to estimate initial expenses of starting your business

Sneha Shuklaby Sneha Shukla

Entrepreneurs often talk about their startup costs. When you are making the decision to start a business, it is only natural to consider how much money is involved. There might be additional money that comes with the road of starting a business. Hence you must be very efficient in recording your cash flow. To make it easy and accurate you can also use a Bookkeeping app. This article will calculate the initial expenses of starting your business so you can get an idea of how much money you might be spending on your new endeavour.

  1. Company registration

If you are starting a business, then you will need to register it with the government authority. This will help you to obtain your business licence and other permits that are needed while operating a business in India. It is essential that you register your business name with the government authority as soon as possible so that if there is any problem with the name of your company, then you can easily change it later on.

  1. Rent Office Space

Incorporating your business requires you to rent office space. The cost of renting office space depends on the size of the building and the location. If you are starting a small business in your home, it might not make sense to rent out commercial space so that you can keep your costs low. However, if you want to expand or if your business is growing fast, it will be necessary to find a good location for your office.

  1. Marketing

You’re going to need some way to get the word out about your business and attract new customers, so consider advertising in local newspapers, online and on television. You can also try marketing through social media sites like Facebook and Instagram or even by placing flyers in local stores or at places where people hang out such as coffee shops or parks.

  1. Creating Inventory

If you’re a business owner, inventory is one of the first things you’ll want to begin thinking about — and for good reason. Sure, you can just sell your products directly to customers using e-commerce platforms like Amazon or eBay. But if you’re selling physical products, that means having to stock and ship them from one location — which can be costly and time-consuming.

Instead, you’ll want to create an online store where customers can browse and buy your products online. That way, they don’t have to worry about carrying their purchases home themselves — or waiting for them to be shipped in the mail!

  1. Equipment

A very important step in starting a business is to have all of the necessary equipment. This includes computers, printers, scanners, fax machines and more. You will also need furniture for your office space. The cost of this equipment can be difficult to determine upfront, but it’s important to budget for the purchase so that you don’t end up spending money on something that isn’t needed later on down the road. While making a list of all the equipment and their prices don’t forget to include taxes so for instance for a laptop make sure while writing the price you also take note of the GST on laptop. Overlooking this minor detail can make your calculation incorrect.

Sneha Shukla

View all posts by Sneha Shukla →

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