Realistic Start-up Costs

Start-up expenses are those expenses incurred before the business is running. Many people underestimate start-up costs and start their business in a haphazard, unplanned way. This can work, but is usually a harder way to do it. Customers are wary of brand new businesses with makeshift logistics.

Use a start-up worksheet to plan your initial financing. You'll need this information to set up initial business balances and to estimate start-up expenses, such as legal fees, stationery design, brochures, and others. Don't underestimate costs.

This illustration reproduces a typical Start-up table for a home office, service business — in this case a résumé-writing service. The assumptions used in this illustration show how even simple, service-based businesses need some start-up money

Start-Up Costs

Start-up table for a hypothetical home office résumé service.