Calculating your startup costs when starting a business

by Startacus Admin
In this new-normal you can be guaranteed that plenty of people are going to get inventive and consider starting their own business. Is that you too?
In this quickfire post we outline some of the key startup costs that you are going to have to consider when starting that business.
Assets and expenses
First up, try and pipeline what costs when starting a business will be assets and what be expenses. Without being too accountancy technical here, assets can be considered as things that you buy that are an investment into the business with some future sell on value if need be - a laptop, your intellectual property, company van, and so on, whilst expenses are costs that you will have to pay back each month / year - accountancy services, a loan, insurance, seo services, subscription services, website hosting costs etc.
Be frugal
It’s easy to overspend when setting up a business and over think what you might need. The best thing to do is wait until you need it - and then consider if you have the budget. In your costs when writing a business plan for setting up and sustaining your business, have a contingency plan for additional costs, but don’t go out and buy everything at the very start. Be frugal and wait!
Incorporation
There will always be some costs to incorporate your business (registering it officially as a business), and once you have decided what type of business it will be (Ltd, social enterprise, Charity etc) pencil in how much it costs to make sure everything is official! Incorporating your business will vary depending on where you live in the world of course.
Employee costs
Taking on staff? There is of course an expense to add in there! Paying tax and employee contributions? Add that in too. Paying yourself a director wage? Don’t forget that!
Advertising and Promotion
Need to promote your new potential global business empire via more than just goodwill and word of mouth? Consider costs for digital advertising, social media ads, and even physical adverts and signage. Every business will be different, but promoting your business, and at the right time, will surely be key!
Office space / shop front space
Unless you and your new workforce will all be working remotely (which in this new normal, is more likely to be the case) consider how much it will cost to set up shop / be based in that glossy co-working space.
Monies borrowed
Apart from friends and family lending you money which you will need to pay back (unless they are an investor into the company and don’t want the monies back), consider what other costs you are in debt to. The credit card, the loan, the company car insurance etc, are all costs that you will have to pay for each month.
Now you’ve pencilled in all of those costs (and most likely other additional costs too that we’ve not mentioned) workout how much money you’re going to have to make each month to at least break even. All good? Great good luck!
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Tobin Capital continues to expand its portfolio by investing in pop-up marketplace Sook, the startup on a mission to revolutionise the high street.

Sodexo and L Marks open call for applications from innovative startups and scaleups to join their inaugural Sodexo Healthcare and Seniors Accelerator.

The lowdown on FuturePlus, the startup that's on a mission to make sustainability accessible, achievable and affordable for all businesses.

John McLachlan, author and co-founder of Monkey Puzzle Training & Consultancy examines the differences between action-oriented and reflective leaders and which approach is best.

The fitness app that's not just about physical fitness; GoJoe helps employers to engage, motivate and connect their people across all pillars of wellbeing.

Now in its fifth year, North West England water firm United Utilities opens call for Innovation Lab, its pioneering ideas incubation programme.

Not-for-profit OneTech has spunout from Capital Enterprise to expand its offering and continue its mission of creating a more equitable, diverse and supported startup ecosystem.

London-based startup Deep Render tackles the internet’s data and bandwidth challenges via its innovative AI-powered file compression technology.

The lowdown on Dublin-based startup and NUI Maynooth spin-out Neuromod Devices and its innovative evidence-based bimodal neuromodulation treatment for chronic tinnitus.

With the clear shift towards generative AI, Richard Hayes, search director at digital marketing agency Catalyst explores what it means for SEO...
Published on: 9th August 2020
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.







- Startup Sook Receives Investment from Tobin Capital 24th May 2023 Tobin Capital continues to expand its portfolio by investing in pop-up marketplace Sook, the startup on a mission to revolutionise the high street.
- L Marks Seeking Startups and Scaleups for Sodexo Healthcare and Seniors Accelerator 23rd May 2023 Sodexo and L Marks open call for applications from innovative startups and scaleups to join their inaugural Sodexo Healthcare and Seniors Accelerator.
- United Utilities Innovation Lab launches call-out for innovative ideas for fifth programme 18th May 2023 Now in its fifth year, North West England water firm United Utilities opens call for Innovation Lab, its pioneering ideas incubation programme.
- OneTech Spins Out from Capital Enterprise to Support Underserved Communities in Tech Across the UK 18th May 2023 Not-for-profit OneTech has spunout from Capital Enterprise to expand its offering and continue its mission of creating a more equitable, diverse and supported startup ecosystem.