A look at the costs you need to consider before your start trading in a new business.

Starting a new business can be both exciting and terrifying. You may have spent years dreaming of working for yourself, managing your hours, and being your own boss. Any new business will come with some costs. You will need to take these into consideration before you commence trading, which is where you might find a Creditfix budget calculator useful – click the link.


Whether you are renting or buying, any property that you don’t currently have will cost you money. The initial cost, or monthly rent, does not reflect the overall cost. You will also have to consider deposits and realtor fees, as well as solicitor and surveyor fees when buying. These costs can add up. You will need to ensure that you can afford your monthly rent or mortgage payments as, otherwise, you could lose your property and, ultimately, your business. You might want to insure your property as well, regardless of your ownership status.


Any new business will come with a need to buy or rent equipment. This could involve tools, work vehicles, or even phones and computers. You may be able to take out a finance plan to pay these off gradually, but they will still need to be paid. The overall cost of equipment and other items should be factored into your start-up budget. You may then also need insurance on your tools and equipment in case of theft, standard insurance and breakdown cover on vehicles, and cover for accidental damage on other items such as cellphones.


For your business to hit the ground running, you might need to get your name out there. Advertising can be fairly costly. You will also need to decide whether print or online advertising will work best for you. Other methods of advertising, such as decals on work vans, are a possibility but will also come at an additional cost. While this is a good way to drum up business, there is no guarantee. It may take several advertising campaigns for you to be able to work out what platform and method will work best for your company.

Employee Wages

You will need to ensure that you can pay your employees at the end of the first month. These wages will all need to be included in your start-up budget. If you are planning on becoming self-employed as a sole trader, the only wage you will need to consider is your own. If you can manage for a prolonged period of time without money, then that may be left out. Bear in mind that income is never guaranteed, so having a few months of wages calculated might be essential to ensure you don’t run into financial hardship when starting out.

Start-Up Fees

In some countries and states, starting a business comes with fees. These may be for company registration, permits, or trademarking. For some types of business, such as premises that serve or sell alcohol, you might also have to pay further licensing fees.

While this should not put you off starting a business, you need to be mindful that there are costs attached. By creating a realistic budget beforehand, you can save yourself financial difficulty later on.

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