Last week I began blogging about the costs of starting up a new business (http://www.allbusiness.com/blog/WorkingMothers/11535/005616.html). Today I´ll continue with some costs that you might need to consider.
Office Equipment: What you spend on this will depend on your type of business. If you are starting a business from home you may be able to use equipment that you already have; if you are leasing office space, some equipment might be included with the lease, though it is likely that you will have to provide all equipment.
Advertising: Start to think about the places that advertising might get the most exposure for your business. You may decide to place an ad in the yellow pages, run an ad in the local newspaper, attend a trade show geared toward your particular service or business, or purchase advertising space in a magazine (which can be quite costly depending on the magazine and number of subscribers/readers). Flyers hung in strategic locations can also be a great way to advertise. In my doctor´s office, several companies that sell baby-related products have left both samples and flyers in the bathroom, so that when pregnant women stop to visit the restroom they will see advertising from businesses related to the products they need to buy.
Packing Materials: If you are selling a product that will be shipped, you´ll need to purchase materials in which to ship them. For instance, I will need to purchase boxes that will hold the diaper bags as well as tissue paper to wrap them in.
Additional Supplies: You may want to purchase gift cards if your products might be sold to people as gifts. If you are selling a service, you may want to purchase some type of inexpensive but nice "thank you´ item for the purchaser (for instance, a pen with your company´s name on top). If you are selling products in a store you will need to purchase gift bags in which to pack the items that the consumer purchases, along with tissue paper to wrap up delicate items.
These supplies are separate from office-type supplies, which might include photo paper, copy paper, ink, staplers, staples, paper clips, writing paper, and the like.
Labor: If you are offering a service in which you are the sole provider, or a product in which you are the sole designer, then you probably won´t be worried about labor costs for outside workers. However, if you are going to start a service that requires additional help, or if you are manufacturing a product that cannot be done by only you, you´ll need to begin looking into hiring other people. Labor costs can vary, and you´ll need to determine whether you want to hire someone as a contract worker (meaning you are not employing them full time, but only on a per-needed basis, such as a freelance writer) or if you are going to hire them part or full time.
If the person that you are hiring is creating something for you (I have someone doing samples of the diaper bags who will then go on to manufacture them) you will need to include in your start-up fees any costs associated with having samples or prototypes made.
For more info on start-up related costs: