Download free Business Start up cost Excel template
No matter what kind of business you intend on owning, it is a good idea to estimate your business start up cost prior to jumping in. how much does it cost to start a business?. In case, you plan to start a new business, , you may surprise at the total cost to start business. Nearly all new business owners underestimate the cost of starting their business, leaving it exposed to the risks of being underfund. To help you avoid this common mistake, use our Free Business Start up Costs Template to help you determine how much money you need to get your start up business up and running safely.
How much money do you need to start a business?
Calculating business startup costs should be a part of starting any business. An entrepreneur is usually require to put these costs together as part of a business plan, loan or grant application. They are also helpful when putting together proforma financial statements.
Business Start up costs example
Business startup costs excel workbook will help you put together an estimate of costs and funding required to start your business. It is pre-populated with expense categories common to many small businesses and home-based businesses, so it can be very useful in helping you identify all of your start up costs, including many you may not have considered.
As you add your own costs or expense categories, the start up cost in business plan will help you understand whether you have adequate funding. Once you have your funding secured and you pull the trigger, use the worksheet to track your actual expenditures.
Business start up costs (low)
Starting a restaurant? This free template also includes a customized start up cost sheet with many cost categories specific to owning and operating a restaurant. Perfect for helping you capture all of those Restaurant Start up Costs.
Starting a franchise, web business or home business? Continue reading below for some help with costs specific to these types of businesses as well as links to other helpful resources.
How to use business start up cost template?
The key to putting together accurate numbers is to get into the details. This requires doing detailed research by calling suppliers and providers, searching the internet and listing any and all costs that may be applicable. To help you, the business cost template comes pre-populated with many of the most common expense categories. It also contains additional suggestions and tips for each category to help you make sure you considered everything. Feel free to add additional line items that are unique to your business.
Start by listing the sources of funding that you believe will be available to you in the Estimated column. This would include money supplied by owners and investors, funds available from bank loans or other lines of credit. In some cases you may be pursuing other sources of funds such as grants, endowments or sale of assets.
After all your funding sources have been outline, start putting in the estimated fixed costs. These costs are one-time costs associated with getting your business up and running.
Two key parts to the fixed costs are the Working Capital and a Reserve for Contingencies – these can be significant. Any business with low startup cost having a Contingency Fund as there are always last minute surprise costs and fees. Consider the risks of Business-startup-costs business and set aside sufficient funds accordingly.
Be sure to include enough Working Capital to fund your normal business operations as you grow. Remember that there are significant amount of time between when a sale is done and when you actually receive payment. Sufficient working capital is require to allow you to continue to purchase inventory and pay bills while waiting for payment. More than one growing business has failed because it lacked sufficient working capital.
Monthly Costs – Until Profitable
Many entrepreneurs fail to understand that businesses are seldom profitable the first day. In order to have a clear picture of actual cash required, it is important to estimate your monthly operating costs. The template is setup to assist you in determining these important costs.