A startup budget includes all of the items you will need to buy for startup, as well as other expenditures, like utility deposits and initial inventory of products to have on hand for the first day of business. The total of all of these items will give you an estimate of how much you will need to borrow for startup. Here is a list of the items you should include in your startup budget:
- Facilities
If you are buying a building, include the cost. If not, include the initial cost for leasing space (deposits), and any leasehold improvements ("build out") you need to make. Also include utility deposits, and costs of signs (interior and exterior).
- Equipment and Furniture
List the costs for all equipment, furnishings, and furniture you will need for your business. Don't forget computers, printers, and other office equipment. Go room-by-room through your facility and consider all costs, to get as close as possible to the full cost of all the items you will need.
- Inventory
If you are selling products, you'll need to have a variety of products on hand when you open the doors. Include the cost of this startup inventory in your startup budget.
- Supplies and Materials
Consider what you will need for initial quantities of supplies and office supplies. Include initial quantities of business cards, stationery, brochures, and advertising materials.
- Other costs
Other costs to include are: local licenses and permits, fees for your CPA to help you set up your business books and for your attorney to set up your legal structure, business insurance deposits, and other fees related to your specific type of business. For a franchise business, include your franchise fee.
Once you have determined your total startup cost, you can then determine the monthly cost for a startup loan by using one of these mortgage calculators.
