It can be expensive to start a new business. The average new business costs $30,000 to start, says the Kauffman Foundation, but many businesses cost far less – or far more. A freelancer or home-based business might be practically free to set up, while other small business can cost hundreds of thousands of dollars before opening. A start-up can have many different types of costs:
- Operations Expenses: travel, payroll, rent, office supplies, marketing materials, legal fees and state incorporation fees
- Capital Expenditures: inventory, property, vehicles and equipment
Business startup costs are incurred before a business starts. According to Bplans, you should anticipate the following startup costs:
- Startup expenses: These are expenses that happen before the beginning of the plan, before the first month. For example, many new companies incur expenses for legal work, logo design, brochures, site selection and improvements, and other expenses.
- Startup assets: Typical startup assets are cash (in the form of the money in the bank when the company starts), and in many cases starting inventory. Other starting assets are both current and long-term, such as equipment, office furniture, machinery, etc.
- Startup financing: This includes both capital investment and loans. The only investment amounts or loan amounts that belong in the startup table are those that happen before the beginning of the plan. Whatever happens during or after the first month should go instead into the Cash Flow table, which will automatically adjust the Balance Sheet.
Technology to run your business can be pricey, and technology can create headaches and problems. But technology can also solve problems and stretch the budget for small business owners and entrepreneurs, especially when you’re just starting out. Here are some ways that smart technology decisions can save you money.
Bonus: 10 ways Alexa can improve your productivity.
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Tech Hacks That Save Money