1. Money
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Create a Startup Costs Worksheet


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Facilities Costs for Startup

Facilities Costs
Facilities costs are those related to your location, including your lease, utilities, construction, and costs for preparing the facility for your business use. Assuming you will have a commercial lease, your startup expenditures should include these items:

  • Lease security deposit
    Most commercial leases require an initial security deposit equal to one month or more in rent.
  • Other Deposits
    Include an amount for deposits on utilities and phone service.
  • Tenant Improvements
    Until you have settled on a location and received estimates on the cost to remodel to suit your needs, you won't know this cost, so you will have to estimate.
  • Signage
    Signage includes all exterior and interior signs. Estimate high; they are more expensive than you think.
  • Other Facilities Costs
    There may be other costs related to your facility, such as fees for appraisals or city/county taxes, that you will need to pay.

Note The term "tenant improvements" or "TI" can also be expressed from an accounting viewpoint as "leasehold improvements," and from a construction viewpoint as "build-out." All three terms mean the same thing.

Second, total all equipment and vehicles needed.

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