New Business Start Up Costs

gbh

I've had a look back and there seems to be quite a few threads from people looking to start there own business.

Just wondering would anyone with experience of starting a business, successful or otherwise, care to share with other people such as myself who are interested in starting a business, a breakdown of the costs of setting up a business up to and before the stage where it starts trading?

democrates

It starts at zero if you start small:
Sole trader so no company incorporation costs.
Business name includes your personal name so no need to register one for €20.
Use your existing personal banking account, credit card etc.
Work from home, use existing pc for books, online research etc.
Use contacts and cold call for customers.

I'm running since feb and still haven't any business cards, my domain bought but website not built, I'm too busy building websites for paying customers!

Effectively everyone's a sole trader already, except most don't trade. If you do trade you just have to download and submit a BP1 tax return that year instead of the normal one.

You may want to spend on market research, company incorporation, legal advice, insurance, accountant, tax advisor, advertising, website development, office, recruitment, hardware, software, machinery, raw materials, goods for resale, land, livestock, etc. Regulations for health and safety etc may apply to your business area and compliiance may be expensive, eg getting a ce mark for a new electrical device. So there's no upper limit, no shortage of appetite for your money out there.

The real financial question for starting small is more often how much your personal/family monthly outgoings are, and how long you can coast without money coming in if the business needs you full time, and remember 60 days credit waiting for revenue and sometimes longer, if at all.

If you know what things you need then google, eg 'company formation site:.ie', very often there are prices on websites or call and get a typical price. Stick em in a spreadsheet and add em up. Cashflow is critical starting out so do a projection per month of income, expenses, and cash at bank for the first two years. Doesn't have to be down to the euro but it's better than flying blind.

PostCelticCub

Hi there,

I'm new to boards and I'm not sure if this is the right place to post questions but I have a few anyways...

Im thinking of starting a business that requires me to have storage space. I have a concrete shed out in my garden that is roughly 15ft by 6ft in lenght and width and 7.5ft high, it is in need of repair as it is but I'm wondering would I need planning permission to make it bigger? I was thinking about expanding it to 15ft by 12ft in lenght and width and keeping it 7.5ft high, I would be building into my garden. Also would I need planning permission to fit a steel door into the shed from a common area behind my garden. The council maintains the grass behind my house?

Another Question I have is that I am planning to purchase a van and I understand that I can claim back VAT if I'm registered? Could someone explain how this works whether I can save money when buying the van or do I claim back at a later date...

Sorry if these questions should have obvious answers to someone thinking of starting a business... Thanks

If ya don't ask You'll never know!

antoinolachtnai

Sounds like serious planning permission stuff to me. If it is grass at the back, not a lane, you are extremely unlikely to get what you have in mind. If you got it, you could find yourself with a rates bill and a bill for 10 grand or 15 grand for services when you change to commercial use.

You would probably be better getting a premises if things get busy at all. Maybe you could hire a corner in someone else's space to start with?

Is there any way you can avoid holding stock or avoid paying for it?

Is there any way you can avoid the cost of having your own van? There are plenty of gentlemen with vans and courier firms out there already.

There is a lady in another thread here, who does deals on GBP 35m of cars a year, and holds no stock and never even actually sees or handles the cars she sells.

Have you thought about marketing/sales/promotional expenses and plans? These are really important.

Tax planning stuff is important in its own way, but it really isn't the most critical thing. You should get advice from an accountant on that part of it for sure.

FusionNet

I started my business with 20 euro, so as suggested it can be as small or as big as required... With regard the shed, its different in deifferent counties but here in Kerry you can build a 400 square foot extension be it a shed or an extra room onto the back of your house without planning. But before you do anything, just make the 2 minute call to the council to find out. On the VAT thing, if you are registered for VAT you can claim all VAT back from a van in one go but the price of the van is not tax deductable in one lump sum.

CompanyBureau

Start-up costs will vary widely from business to business. For web design, stationery, etc. your looking at at least the 1k mark.

xxlplease

There is no rule. It all depends what kind of business you are thinkig about. I would advise to keep your business account separated from the personal one - It will help to keep things simple and clear from the beginning. Consider staring "Setting-up your own business course" (not FAS, courses recommended by Enterprise Boards are much better)