Starting your entrepreneurial journey?
Starting your own business is exciting, but if you’re not careful costs can spiral out of control before you’ve even started!
You’ve decided to take the leap, great! But how much is it going to cost to get your business operational? The short answer is, it depends on what your business is. That being said, most businesses can be separated into 2 categories: Product based and Service based.
If you’re planning on producing a product to sell, then you can expect to have higher set-up costs (in most cases) compared to those offering a service based business. However, while these business types typically differ in overall start-up cost, a lot of the start up ‘cost categories’ are the same, or similar.
So what are some of the costs you might incur when starting your own business?
Business Market Research
- You might want to buy a market research report or hire someone to perform an analysis of your potential market(/s).
- Attending a trade show could help you to identify competitors and think about how you could make your product or service stand apart from theirs and develop your USP.
- If you are creating a product, you could buy some of your competitors’ products to compare with yours and, in doing so, also gain insight into their ecommerce platform/purchasing systems and customer service.
- Having the right type and level of business insurance is crucial. Talk to an insurance professional to identify the best package for you. Don’t just buy business insurance on the internet!
Office Type Equipment etc
- Printer, photocopier, scanner
- Office essentials like paper, pens, folders, staplers
Production Equipment, Tooling etc
- If you plan on manufacturing a product, the kit required could be very expensive and may take a several weeks to arrive.
- Consider exploring Asset finance options for equipment. There are specialist companies that can help you to buy essential equipment and spread the cost over several years.
- If you plan to manufacture products, you will need to purchase required materials. Most material suppliers have large Minimum Order Quantities (MOQ’s).
- Consider where you’re going to store your materials – do you need to rent somewhere.
- Consider the recommended/necessary storage conditions for your materials – these may generate further costs.
- Web-domain, website, branding, brochures, business cards, leaflets, pull-up displays, published articles, advertisements and attending trade shows. All these marketing methods (while valid) cost money. Ask yourself, do you need them all at the start?
- Visiting potential customers is a great way to market your product and demonstrate your passion and commitment, but the associated travel costs can quickly mount up. Consider carefully who you will visit (and why) as part of an overall marketing strategy.
Office / Production Facility
- Do you really need an office/premises straight away, or is it possible to operate from home for the first period?
- If you’re planning on manufacturing products, you might need a large space to support all your processes. If this is the case, don’t forget that you’ll need to have it well insured and that you will also have additional heating and electric costs.
Some businesses can get started with only a couple of hundred pounds, while others can cost a lot more. You can’t avoid the fact that starting a new business costs money, but the key thing is to ensure you get value for money.
To help ensure you’re getting value, why not reach out to people who’ve been through the various stages of starting a business? Not only could they potentially provide you access to their supply chain and business network, they could also help generate your first sales by recommending you to their colleagues as well as providing you business mentoring and important guidance on your entrepreneurial journey, for example Negotiation methods, sales skills, resource planning and business funding.
Pinnacle offer a range of monthly business support packages to our clients across the UK and Ireland that focus on:
- Business Owner & Executive Team Mentoring / Coaching
- Commercial Strategy and Implementation
- HR & Staff Management / Development
- Marketing & Communications
- Product / Service Cost Modelling and Planning
- International Trade and BREXIT Preparations
Recognising that new-start businesses require different levels of support, advice and guidance compared to an established business, we have taken our selection of monthly support packages and developed a range of packages specifically tailored to new-start businesses up to 18 months old. We have also costed our new-start packages to take into consideration the fact that in all new-start businesses, cash flow and outgoings are critical.
Why not talk to Pinnacle about partnering with you on your business journey and together we can ensure you achieve and even exceed your business goals and your entrepreneurial journey is not only enjoyable, but also profitable.Contact Us