3 – Start Up Needs
We’ve talked about how your business will make money, but is also takes money to create a successful business. You need things – time, money, people, or supplies – to get started. What will it take?
Your startup needs include the money, people, things, technology, and activities required to get your business off the ground. Some of these things may be physical (service providers, buildings, equipment) while others will not (time, activities, technology). Startup needs are vital to launching your business but will be less relevant once you are up and
running.
Ask Yourself:
- How much time do I initially need to dedicate?
- What sorts of activities do I need to complete?
- What will need to buy to get started?
- What can I borrow initially instead of buy?
- Who needs to be involved at the start?
- Even though some needs won’t cost money, others will. How much money will you need to get started?
- Will I pay the people helping me?
- How much will supplies cost?
- Will I need to buy or develop technology or equipment?
- Will I need to hire service providers (attorney, accountant, graphic designer)?
Because you only need these things at the start, they are one-time costs. One-time costs (also known as startup costs) are paid once and never again, or not for a long time. Examples of one- time costs include special equipment purchases or hiring a graphic designer to create a logo for your business. Others include: website design, intellectual property filings, entity setup, franchise fees, offering document creation, contract creation & review, financing & application fees, etc.
Weighing the Costs
Think about your blueprint. Each part of your business will have costs associated with it and your model as a whole will either make money or not. Always look for ways to make your model better.
Complete the quiz before moving on.