You have the idea and the vision for your own business. Now the question comes: "How much money will I need to start a business?"
For entrepreneurs who are eager to open the doors of their own company, answering that question requires careful consideration of many factors.
No two businesses are alike, but there are many resources, as noted in the recent article Top 20 Web Resources for Business Newbies, to help business owners make the right assessments.
This article examines some of the factors entrepreneurs must consider when embarking on a new business venture.
Different Expense Types
There are other start-up costs, many of which are tax-deductible, to consider:
If you are purchasing a franchise, there are special costs to consider as well, including an initial franchise fee, which gives you rights to the names, business processes, service marks, and trademarks. You will also pay a portion of your monthly revenue to the franchisor.
Franchise start-up costs vary widely depending on the franchisor and, often, the population density of the area of business.
With all of these costs, it pays to shop around. Suppliers and vendors may offer package deals or new-business promotions. They can also help advise you on what you really need and can forego, at least at first. Also consider buying gently used fixtures, furniture, and equipment, which can save you money.
When you are starting your own business, you also need to account for your personal expenses. A clear understanding of your personal finances, including savings and retirement assets, is important to ensure that you can meet your monthly expenses, especially in the early months or years of your new business.
Planning can go a long way toward choosing the right business to open and the right time to open it. Finding the capital is where Benetrends can help.
Benetrends pioneered the use of using existing 401(k) or IRA funds to finance small business startup loans. By structuring the business as a C corporation, owners can use retirement funds to provide much needed capital to open those doors. To learn more about how Benetrends can help your business dreams become a reality, download The Definitive Guide To 401(k)/ROBS Business Funding.
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Information provided by Benetrends Inc. is not intended to be used as legal or accounting advice, or as the sole basis for investment decisions, nor should it be construed as advice designed to meet the particular needs of an individual investor. Please seek the advice of legal or tax professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
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