Chapter 9: The Cost
Business cost is inevitable, startup costs, materials, stock, salaries, insurance, rent, power & phone the list goes on and on. An understanding of these costs is required before you start.
Counting the cost
Counting the cost of doing business sounds daunting, but it need not be. Time will need to be spent to know and understand your business costs and you will be required to do basic financial projections before you start.
It would be a good idea to read the articles on business cost and budgeting at http://arcos-creator.com/business-budget-planning/ and http://arcos- creator.com/managing-cash-flow/
"Counting the cost of doing business sounds daunting, but it need not be"
Do you intend to borrow finances to start then, preparing a cash flow budget is critical?
You will need to list and detail the following;
• How much do you need to borrow
• List out where the money is to be spent and how much for each item
• Your current financial standing
• How will you repay
• Projected cash flow for the following year
Bank accounts are a necessity, make an appointment with your bank's business banking manager and discuss with them your requirements they will assist in tailoring your banking needs.
You will also require a bookkeeping system consult with your account what is best for your business and will cover taxation and financial management budgets and forecasts.