Have you come up with a new business venture, but you’re struggling to work out how you can go about making your dream a reality?
Or, have you got the plans already in place for your new business, but you’re unsure on how much money you’re going to need to save to fund your new venture? We’ve identified the key steps to starting and running a business, taking into account any costs you might incur, so that you can plan ahead to get your new business up and running. Read on to find out how you can calculate the predicted running costs of your new business.
Spending On Assets
Whilst your exact spends on assets will differ according to the type of business you own – whether it’s catering equipment, power tools, or a vehicle – the money that you use to purchase these assets is an investment. Therefore, it’s worth investing your money in assets of high quality that you will be able to sell on for a high value. If you can’t afford to buy a brand-new cooker, or a brand-new van, there are many business owners selling their old business equipment because they have either upgraded or moved onto a different business venture. This means that you can grab a bargain and cut the costs of initially opening your business. Buying second-hand means that you don’t need to spend extensively when you haven’t yet made any profit!
Spending On Staff
Before putting up job listings and conducting interviews, you should consider how many customers you are expecting to provide your business and services to. Then, think how many staff you will realistically need to meet this customer demand. Whilst it’s a nice idea to have a selection of staff members to instruct to do the tasks that you don’t feel like doing, this might not be financially feasible at the beginning of your business journey. If you can handle running the business yourself, or with a partner to begin with, don’t spend unnecessary profit on hiring people so early on! Once you no longer have the time and energy to run the business solo, hire another employee who can take over in the area of your business that you know you will benefit from having an extra hand.
Spending on Energy Bills
Electricity, gas and internet bills – especially when you are in the catering or retail industry – can stack up. It might be helpful to predict how much energy your appliances, lighting systems and heating use, so that you can try to work out your monthly outgoings that you will spend on average for paying bills each month. Take into account that the winter months may use more energy than the summer months, where there are less daylight hours and the weather is colder. The good news is that businesses can benefit from exclusive discounts on energy rates, and you can find special Business Gas prices here.
Now that you’ve got an idea of what sort of costs you might incur with your new company, the only thing stopping you in your new venture is getting the funds together to actually put in place the structures for your business!