In our Facebook Story of the Day, you wanted to know how much does it costs to start a business.
Small business experts say there is no one figure that sums this up; the answer depends on what kind of business you want to start. The University of Georgia Small Business Development Center say there are a variety of costs to consider, including start up fees and salaries.
Consultants say the first thing to consider is first-time expenses, which are fixed assets (land, equipment, etc.) that are paid once. The next item to consider is working capital: What is the product and how much are they being sold for. Consultants say to estimate sales then take out costs to find a breaking-even point.
They say there are some fees people forget.
I had a client not long ago that didn't consider her utility deposit. Well, it was over $1,000. That's going to be based on the location and the history of that location, possibly on the person's credit. Certain deposits are required when you start up and a lot of times people are shocked by that, says Stacey Conyers, Business Consultant.
The Small Business Development Center also offers classes every month for people wanting to start a business. Classroom lectures cost money but are free online. Students will develop their plan " including financial plan " during the classes.
Conyers says the best thing when starting up a business is planning.
The biggest reason for failure is poor planning or not planning at all, says Conyers.
To get connected with UGA TMs Small Biz U eLearning University, visit the following website.