The cost of opening up a business
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 â" including financial plan â" 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's "Small Biz U" eLearning University, visit the following website.