Invoice Bazaar Blog

What are the various costs to be incurred while setting up your new business?

By Invoice Bazaar | September 10, 2021

As an entrepreneur, you may find it quite exciting to start a new business venture, but right at the inceptions stage, you will have to consider several costs that will have to be incurred before it can get up and running. First and foremost will be the expenses related to researching the competing products and services, studying and understanding the market potential, as well as developing and launching your own products and services to cater to the needs of your target audience. One-time costs will comprise payments to be made for the incorporation of your business entity as well as for acquiring workspace, warehouse, or office space, including down payments, brokerage fees, and registration fees. 

Then you may have to pay HR agencies to hire employees. You will also have to buy new office equipment and furniture, workshop machinery, as well as inventory and starting stock. Furthermore, you will also have to spend money preparing the much-needed promotion material, logo, trademark, company website, business cards, brochures, etc. Meanwhile, the recurring expenses to be incurred will include rent, taxes, insurance premiums, fees for legal services and accounting services, and payments to be made for utility services, conveyance, phone bills, website hosting, office stationery, etc. 

If you are dealing in physical goods, logistics and shipping charges will have to be incurred regularly. Meanwhile, staff wages will also form a significant chunk of your regular costs. Then you will have to spend money for marketing and sales-related activities such as setting up advertisement hoardings and kiosks, releasing ads online and in print & electronic media, social media marketing, etc. Finally, depending on the nature of your business, you may have to incur some technical expenses for setting up e-commerce portals, business e-mails, buying software programs as well as for developing online applications, and for creating the required digital infrastructure.