Starting a business invariably involves a series of “obvious” costs such as finding and fitting out business premises, permits and licenses, inventory and equipment, and initial marketing costs.
But according to the experts, there other less obvious costs that every start-up needs to consider.
“Start-up businesses incur many and various costs, and quite often they are caught by surprise when they discover just how much those costs can amount to,” says Marc Peskett.
Peskett is a director of MPR Group, a Melbourne-based firm providing business advisory services as well as tax, outsourced accounting and financial services to small businesses.
“Even when they have identified the costs, timing can be an issue. Finding sufficient cash at the right time in order to meet those costs can be a challenge,” he says.
“Broadly speaking, there are two groups of costs – setup and ongoing costs, and they both need to be planned for.”
“Apart from the financial cost, there’s also the time cost involved in establishing a business.”
“This needs to be factored in by a business owner, especially in those early stages when they are probably trying to do as much as they can themselves in order to save on costs.”