3 Start Up Expenses to Consider

 When it comes to starting up your very own business, one of the first steps you should take is to consider your start up expenses. You need to make sure that you have enough funds to sustain the beginning few months of your business operations, at the very least before it starts to turn over a profit. To help you make sure you have enough funds, you first need to understand your potential expenses. Below are three start up expenses to consider.

Marketing Budget

You will need to make sure that you have enough funds to sustain your marketing efforts. Unless you are doing everything in-house, there are bound to be a few expenses that you’ll have to make. For example, commissioning an artist to create original art pieces promoting your services and products, or paying for an advertisement to display on social media platforms.

Borrowing Costs

If you are going to borrow money to start your business, then you will need to factor in your long-term interest and repayment expenses. Depending on your financial situation, you may need to pay an initial fee or application fee. Ongoing monthly payments of principal and interest may also be required, so it would be useful to have enough ready for the first few months of your business running.

Payroll

Although you may be fine with giving up a few salary payments for the start of your business, your employees will not be. You will need to make sure that you can pay your employees salaries, bonuses and benefits. In Australia, you will also need to make superannuation payments on behalf of your employees.

The expenses covered above will add up so you will need to consider them before starting your own business. It is especially important to keep watch of them if you are just starting up your business, as things may be more unpredictable. Work with a tax accountant to ensure you calculate your expenses correctly.