ESTIMATING COSTS OF STARTING A SMALL BUSINESS!
Emerging business insurance! (Ref: www.santam.co.za)
When starting your own business, you don’t need MASSIVE capital. Take for example The Big Blue retail chain, it started as a stall at a market, USN sport supplements now a billion dollar business started from a kitchen. Estimating the costs and a clear picture of what is needed in a small business is essential to avoid cash flow problems.
List Business Expenses
“When you start a business, there will be once-off costs and continuous monthly expenses. The key thing is to look carefully at each individual expense, make an educated guess about the cost and separate expenses into the lists we detail below. After you’ve completed the items applicable to your business and guessed the amounts you’ll need, add up both lists, and the total of the two is the start-up costs you’ll need. Remember to prioritise what is absolutely necessary – i.e. electricity – versus nice-to-have (e.g. business cards).”
Your monthly expenses
Beware of these hidden costs
“Once you’ve established your start-up costs, it’s also a good idea to keep some funds aside for any surprise expenses such as:”
Additional equipment and furniture
Customers paying late
Interest charges on overdrafts
Support and funding
There are a number of government organisations that offer support to small businesses, for example:
The Small Enterprise Development Agency (Seda) provides support services for small businesses such as how to write a business plan and how to grow your business. Look on their website for a local branch to get in-person advice.
If you are under 35 years of age, you can get training in setting up a small business, advice and start-up funds from the National Youth Development Agency.