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10 Steps Before Starting a Small or Home Business

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8 of 10

Step 8: Determine Your Startup Costs
Calculate your startup costs - the amount of money it's going to take to get up and running. At this point, many of your items are going to be nothing more than estimates, but do the best you can.

By completing the previous steps you should have a much clearer picture of your startup costs than before you started this exercise. Here are some additional questions that may help you not to overlook something:

  • Will you need to hire specialists, like a lawyer or an accountant?
  • Will you need to buy some office furniture or equipment?
  • What supplies will you need on hand for Day One? Do you need to purchase a beginning inventory?
  • Are you going to buy a business or franchise?
  • Will you have construction costs, and if so, how much needs to be done by professionals and how much can you do yourself?
  • What can you do to lower your costs?

Take your time with this step. Do some price checking and look for legitimate bargains. You're bound to think of things and adjust your estimates all the way up to your opening day.

The closer you get to opening day, the more accurate your estimate will be.

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