How Do you - Detail Startup Costs for new Business


Start up costs are the costs a business incurs while it is setting up operations in order to begin trading. Start up costs relate to all the assets you need to buy, all the equipment you need to secure to set up the operation, as well as the initial costs in organising such things as insurance, promotions and rent etc.

It will also include an amount for what is known as working capital, which is the money required to run the business from day to day.

Examples of each are:

  1. Fixed Costs: Stock at the beginning, plant and equipment, office equipment, furniture and fittings, initial stationery, motor vehicles, cash in the bank for working capital.

  2. Expenses: Includes such things as insurances, initial accountant’s fees, electricity bond, internet connection, rent and rates initially, basic starting wages for employees, starting promotions and advertising.

  3. Working Capital: Working capital consists of available funds that can be called on for the day to day running of the business. This is absolutely essential at the start of a new business because it generally takes some ...

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