How to account for all of your costs

Today we look at how to ensure your business plan has accounted for all the costs you may accrue before your start and as you develop your business.

Any start-up costs

These costs can be quite substantial depending on whether you are buying a business or developing a brand new business.

Here's a list of costs to gather.

• launch marketing communications
• research fees into market potential
• insurance (business, public liability, vehicle)
• connection fees for utilities
• registration fees for your business
• any special certification you may need (health and safety, professional, legal)
• legal fees

All ongoing costs

You will find you will have variable and fixed costs in your business.

FIXED COSTS are those that do not change if you sell one more product or service item.

These are likely to be rent, rates etc.

These will be in your business whether you are having poor sales or booming sales.

Some fixed costs will increase if your volume of business develops past a certain point.

Calculate your fixed costs then you'll be able to later work out how many units of product or service you need to sell simply to BREAK EVEN.

Fixed costs will include: