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Recently Vertex 42 released another fee Microsoft Excel Template that you can download to assist you if you are establishing a small business. The spreadsheet is to help you estimate your business start up costs.
Whether you plan on starting a small business or a larger company, you may be surprised at the total start up cost. Nearly all new business owners underestimate the cost of starting their business, leaving it exposed to the risks of being underfunded.
The template is pre-populated with expense categories common to many small businesses and home-based businesses including an online internet marketing business. It can be very useful in helping you identify all of your start up costs, including many you may not have considered.
An internet marketing based business may be one of the least expensive businesses to start, especially if you can do the web development work yourself. Use the basic template and decide which expenses apply to you – simply delete the rest. You may also want to consider some items not listed, such as custom web page design and development work, custom database development and scripting, search engine optimization (SEO) and advanced hosting services to name a few.
The nice thing about a home based business is that you can forgo many of the typical expenses of a start up. Things like internet, office space, furniture and utilities are already taken care of. Do check to see if you qualify for the home office deduction, now you can write some of these items off as business expenses.
To view a sample of the Excel template click the provided link.
Many small business owners 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 as well as how many months it will take you to move from the red to the black.
As you collect revenue/income and begin to spend money, record the actual amounts next to the estimated numbers. The spreadsheet will calculate whether you are running over or under you estimated numbers so you can make adjustments as you go.
Don’t place yourself in a position that you spending money on unnecessary expense items. It is better to allow income from the business to fund future expenses. Good luck and have fun.
Daniel Iuculano, AAMS CMFC
Financial Planner
