Building a successful business starts from before you begin trading. Having thorough and comprehensive planning and budgeting can make the difference between a company that treads water, and a business that is truly successful.
Failure to plan properly will only set you up for a fall. And if you have not managed to get a workable business plan and budget together, then you will find that your business will suffer as a result.
There is no value in setting yourself a starting budget that is too low. This is especially true if you are looking for outside investment to be able to start your business. When you take your business proposition along with your financial forecasts and budgets into an investment meeting, you will be talking with people who look at business plans daily. They will be able to tell from looking at numbers on paper whether a business is likely to be a success, or if there are gaps in your planning that will cost you everything that you will have put into the company.
If you have not accounted for everything that you may need, then you will also find that if you do not budget high enough, then you will run out of money before you even get yourself off the ground.
Your business may have very diverse setup needs. These may include everything from the rental of your premises to fitting costs such as getting warehouse flooring from Impact Floors. You will most likely need to get computers to work from, and office furniture.
You’ll need to include marketing costs such as setting up your website, paying your domain registering fees, as well as web-hosting, and social media expenses.
Recruitment can be a costly affair, and you need to think about where you are going to get your employees from, and how you will recruit them. This should be included in your budget, along with the actual wage costs for the opening period that you are budgeting for.
There will be lots of administration related fees that you will need to pay too such as registering your company, as well as any business and liability insurance policies that you need to take out.
Added to this, you will then need to factor in the cost of any stock or supplies that your business may use, as well as any packaging.
Plan For Things To Go Wrong
When you start a new business you will inevitably come to a situation that you had not, or could not have planned for. The unforeseen circumstances can often end up being costly, so including a contingency buffer within your budget will ensure that you are able to handle these unplanned expenses as they arise. Think about including an additional five to ten percent to cover anything that you cannot account for. If you are prepared for the worst to happen, you will save yourself a lot of headaches later on down the line.