Calculate your startup capital
A question that arises from any aspiring business operators is “Do I have the available funds to start the business and if not, how will I fund the startup costs?”
If you don’t have the funds available, you will need to borrow money, traditionally done through a financial institution. However there are other options: family, friends, or maybe bringing a partner into the business.
Another cost item you should consider is a contingency. This is an amount for those unexpected costs you will incur. Maybe that computer you brought into your business stops working and you have to replace it. Your contingency will help you replace the item even though you had not planned for it.
You can now bring all the associated costs together into a summary sheet, which enables you to list all costs and your contingency to show the total startup capital required.
What unexpected changes or costs do you think could happen for a small online business that might need to use a contingency amount?
Post your thoughts to the Comments area below.</bockquote>
© RMIT University 2016