Anticipating start-up needs is an important step in the business creation project. The objective is to establish an exhaustive list of all the expenses that will have to be made even before starting the activity, and also to provide enough new money to ensure the effective start of the activity.
Business start-up needs the right person to lead and build a scalable business. These leaders are driven by their passions, experience & skillsets that allow them solve complex problems with confidence. They will also have great networking opportunities at local meetups, webinars or workshops around Silicon Valley. All founders must be ambitious in pursuit of making something awesome – which is why they require passion over money!
Business start-up needs to become as transparent about how it earns its money and can be accountable for the costs,” said Brad Smith, a managing partner at KPMG. “Companies that do not understand or acknowledge their financial success are more likely than others in our society.”
Start-up needs are part of the financing plan, to be drawn up for any business project.
- Start-up needs are mainly investments, pre-launch or launch expenses, money needed to finance working capital requirements, and start-up cash.
- Start-up needs should be distinguished from fixed charges, which are recurring (water, electricity, insurance, social charges, remuneration, taxes, external services, etc.).
The start-up needs can be listed as follows:
- Establishment costs: these are the costs of setting up a business:
- 0 $ for a sole proprietorship if you do not seek help from the formalities center ( 60 $ otherwise),
- $ 300 for a company if you take the necessary steps yourself, and up to $ 1,500 if you call on a chartered accountant or a lawyer,
- Cost of opening meters (water, electricity, gas),
- Compulsory or non-compulsory training: some activities require training. Example: installation preparation course for craftsmen.
- Trademark, patent, design or model filing or registration fees,
- Entry fee (for example to join a franchise network),
- Cost of buying a business or a company,
- Right to lease,
- Security deposit or security deposit,
- Purchase of premises,
- Notary or lawyer fees,
- Works and fittings, decoration,
- Acquisition of equipment, tools, machines, vehicles,
- Acquisition of office equipment, supplies, computer, printer,
- Cost of building up a stock of raw materials, finished or semi-finished products,
- Cost of the sign and communication elements (business cards, brochures, custom logo designs, website, graphic elements),
- Cost of launch events and advertising,
- Working capital requirement: this is a sum of money kept in anticipation of the start of the activity, in order to cover any discrepancies between the inflow and outflow of money, for example if customers pay more lately that suppliers are not paid.