It is vital to determine your start-up costs before taking out loans or investing money into any business. You may find that your potential business is going to cost much more then anticipated and can severly harm your financial situation. In order to calculate realistic and practical start-up costs, you should do market research. Create your research structure around answering the following questions:

  1. Do you need an office space or facility outside of your home?
  2. Where do you want to be located?
  3. What are potential sites of your location?
  4. How much will it cost to rent or purchase an office space or facility in your desired location?
  5. Do you need to hire employees to help you start the company?
  6. How much would you pay your employees?
  7. Do you need to outsource work to other companies?
  8. How much do these companies charge?
  9. Do you need to build a website? Do you want to hire someone to create your website? How much will that cost?
  10. What supplies do you need in order to open your business? (Supplies are everything from pens, paper and computers to business specific equipment like ovens, heavy machinery, or cars)
  11. How much do each of these supplies cost? (You should try and compare the prices of a number of different companies)
  12. How will you market your business?
  13. How much will it cost to market your business?