How to plan for business start up costs? Simple explanations for small business owners and startups

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How to plan for business start up costs? Simple, easy to understand explanations for small business owners and startups
How you're gonna start is step one to go get yourself either an excel spreadsheet or a piece of paper will actually do the exact same trick and what you're going to do step one is just to make a laundry list of all the things that you know that you're going to have to buy purchase acquire partner with right so whether that is going to be a website an app you're going to need to build you know some development cost a software developer it's going to be some office expenses some of you might need vehicles some of you might need you know some marketing collateral to get things lined up so you're just going to basically make a list of all the things that you know that you're going to need to incur okay this is going to be the you're kind of thinking of a piece of paper this is going to be on the side here it's just it's just a list now along the top what you're going to do is put every single month that's coming up January February March April may okay so so far you basically have like a table of the expenses you know of and when they're going to happen now step three is going to be where you're going to take your best guess because you are not going to know what your best guess is going to be what am I going to buy in what month and what's the price going to be and you're going to take a random guess you are going to be wrong but it is better to start filling out this schedule with something in there as a placeholder then leaving it completely blank okay so go make what your best guesses plop them all in and then what you're gonna do is similar to what you were doing if you were taking a vacation anywhere what would you do if you were going to Hawaii well you would reach out to your neighbors your friends you would say hey tell me about your trip to Honolulu you know what should I be packing you're ultimately going to be asking the exact same question you're going to say hey I think I'm going to have to incur these different expenses but what am i busy like what else should I be including in here what else should i layer in and you're also going to show them some of the estimates you're going to say like where are my clothes where am i off you know just get another opinion it's the same idea again like you're going on a trip and someone will say you know how much cash should i bring for like daily spending well it depends it depends on what you're going to spend but it's helpful to kind of get a variety of perspectives from different people so that you can start to plot and figure out what it is that you're going to ultimately end up incurring so guess what once you've done that you've made your list of the costs that you know you're going to incur you've figured out when you're going to incur them you've made a rough guest you've gone and sought help from some mentors or people in your community to flesh out those costs a little bit further and to flush out your estimates and then all you're going to do is tally it all up and figure out what those things are going to cost now in all likelihood when you're starting up a business you probably don't have a revenue stream coming in so your first question might be to panic and to say oh my gosh now i have to like go get funding or go get someone to provide me all of this all of these different costs and you can go down that path but you probably want to start figuring out ways to get really creative initially because any lender whether it's debt financing or equity financing they're going to want to be looking for some evidence of traction of some sort of traction so to the extent that you can self-fund some of these things or get really gritty and resourceful and find ways to make some of this happen to be able to demonstrate a track record of success the easier it would be for you to ultimately be able to go and get financing from someone else because that person is going to look and they're going to say well you know show me what you've done so far show me where you're at already um so i think after you put together your list of your startup costs is to pause and deliberately ask yourself how can i get more resourceful with this who do i know that i could do a swap with to kind of trade some different services you know what is another way of accomplishing this but regardless of where you end up landing um enjoy the excitement enjoy the the startup phase.

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