Hello everyone! I hope you guys are having a good day thus far. Today, I wanted to stop by and share this article from our Resource Center pertaining to essential startup expenses and unnecessary ones. Here are some essential startup expenses they mentioned:
Business plan
According to 69% of small business owners in a QuickBooks survey writing a business plan is the best first step. This can typically range between $1000-$20,000. This investment can be costly, but it is worth it.
Business permits, license, and insurance
This is an investment that is needed. Because of unforeseen circumstances, it is essential to protect yourself and your business and ensure your business is compliant. This cost ranges from $500–$30,000.
Equipment
There is a high chance that everything can't be done with just your hands. There are other equipments need to help with your business. This could be simple as using an internet connection to assist with a consultation. A way to look at this is that it is a worthwhile expense. The typical cost range can be from $1000-$100,000.
Here is a list of unnecessary startup expenses:
Expensive branding and marketing
The writer advises not to spend so much money on logos, paid ads, and so forth right away. They urge us to rely heavily on social media and word of mouth to stir some traction.
Large staff
You don't want a situation where you have a large team and can't pay them. In some instances, it would be best to outsource with different freelancers or independent contractors to avoid paying consistent wages or benefits.
Travel and perks
The aim here is to spend money on what is needed and not what is in style. For example traveling business classes, having parties and celebrations, or catering lunch when starting up. Once there is a form of stability and better cash flow, then these perks can be enjoyed.
Could you add to the list some necessary and unnecessary startup expenses to help assist upcoming entrepreneurs? Feel free to let us know by commenting below! We love it when you interact with us. Until the next time, be safe and take care.
