Common Business Startup Costs

You’ve got a great idea for a small business, and now you need a plan to put it into action. One of the first steps is to set your budget to make sure you have enough money to get off the ground. Here are the main items that you should consider.

Insurance

No matter what kind of business you run, you need New Jersey commercial insurance. At a minimum, you will need property coverage and a general liability policy, but your agent may suggest a more comprehensive package, depending on your specific industry.

Incorporation

If you are running a for-profit company, it probably needs to be incorporated so that you can file taxes as a business entity. At the very least you will need to obtain the appropriate licenses and permits your state requires to operate your business.

Building

Obviously, if you are buying a building, you will need to secure funding to do so. Even if you are renting your office space, you still need to plan how you are going to pay those fees each month. Whether you rent or own your building, you will likely have utility costs that you must plan for.

Supplies

You need more than just an empty space to run your business. Make a list of office furniture and supplies you’ll need. Take into account phone and internet services and support. Decide whether it will be more economical for you to purchase or lease the equipment you use.

Inventory

To sell a product, you will likely need an inventory before you ever open. Plan how much you will need to fully stock your shelves for opening day.

Marketing

Good marketing starts with a solid web presence. You can hire someone to build your website, or you can use templates to create it yourself. Create social media profiles to reach potential customers easily.

A great business plan is only as strong as its budget. Accounting for all the startup costs you need improves your chances of success.

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