What Does it Cost to Set Up a New Business?

Looking to set up a business? You might already have a fantastic idea and be keen to get started, but before you do it’s important to consider the financial aspect. Here are a few things to consider. 

Getting started- the overhead costs

When it comes to business, the phrase ‘it takes money to make money’ does ring true. To get your company set up and running in the first place, there will almost always be expenses to cover, even if you’re starting small and working at home to begin with. Before jumping in, sit down and work out everything you’ll need to spend to get your business to a stage where you can start selling. Work out if you’ll need to take out a loan, or if you have savings to cover these initial costs. For some kinds of businesses, you might be able to get a grant or you could look into investors to see if there’s any additional help out there- check out Fundamental Global for more information. Regardless of what you plan to do or sell, starting off on the right foot with an understanding of what you’ll need to spend initially, and where those funds will come from is a smart move. 

Website and app development

Having a website isn’t optional this day in age. Even if you’re a business that sells locally rather than online (such as a baker or florist) or mainly use other platforms and marketplaces to sell, you still need a website. This gives customers the chance to find all of your information in one place, makes you look more professional and can help you to stay competitive with other similar businesses. In some cases, you may want to go further and have an app set up as well. Check out the costs involved in having a website built by a professional, hosting and domain name costs and IT support. 

Marketing and promotion

Marketing your business is expensive, it’s something that many businesses overlook when they’re first starting out. Your marketing strategy should involve a mix of white hat SEO tactics to improve your website listing in search engines, social media promotion and schemes such as Google Adwords which will all improve your visibility over time and get you seen by the right customers. Get in touch with a marketing agency if this isn’t your area of profession, and get some quotes to work out what you’re likely to need to spend.

Use a direct mailing campaign to reach out to local customers and be sure to include promotional materials in any order sent out. The reason why this is so important to get right from the start is that you’ll need to budget for it over the longer term, and plan ahead. But rather leave it to professionals, as you’re likely to get a much greater return on investment. Don't forget to spend a bit of money on updating your logo or other branding elements. Professional graphic design might be needed to make sure you look the part online.  

Operating expenses

Finally, you’ll need to consider your operating expenses. What will it cost you to buy materials, how much will you need to pay staff or pay for premises hire and insurances? Consider things like accountants to do your tax return, software and more. Creating a detailed breakdown of all of the costs that your business will need to cover to operate means that you wont overlook anything important and can stay ahead with your money. 

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