Start Up Costs Calculator

Published on March 2017 | Categories: Documents | Downloads: 54 | Comments: 0 | Views: 323
of 5
Download PDF   Embed   Report

Comments

Content

Start-up costs calculator
When
When analysing
analysing ifif you
you should
should develop
develop aa new
new idea
idea or
or not,
not, then
then there
there is
is no
no point
point going
going any
any further
further ifif
you
you cannot
cannot make
make any
any money.
money.
Many
Many businesses
businesses make
make the
the mistake
mistake of
of coming
coming up
up with
with aa really
really good
good idea
idea to
to add
add to
to their
their business,
business,
only
only to
to never
never work
work out
out ifif they
they can
can make
make aa profit.
profit.
Often
Often the
the new
new idea
idea drains
drains your
your cash,
cash, time,
time, employee
employee time
time and
and other
other resources.
resources. Remember
Remember that
that
locking
locking in
in core
core business
business should
should always
always be
be aa priority.
priority.
There
There are
are two
two key
key financial
financial areas
areas that
that you
you need
need to
to address.
address. These
These are:
are:
1.
1. The
The potential
potential revenue
revenue
How
How much
much you
you can
can possibly
possibly make
make depending
depending on
on your
your capacity
capacity and
and pricing.
pricing.

1.
1. Enter
Enter Capital
Capital costs.
costs.
2.
2. Enter
Enter Monthly
Monthly costs.
costs.
3.
3. Go
Go to
to Revenue
Revenue calculator.
calculator.
4.
4. View
View the
the Summary.
Summary.
Use
Use the
the sheet
sheet tabs
tabs at
at the
the
bottom
bottom of
of the
the screen
screen to
to
navigate
navigate to
to these
these sections.
sections.

2.
2. The
The costs
costs
The
The cost
cost of
of purchasing
purchasing the
the required
required equipment,
equipment, obtaining
obtaining licenses,
licenses, stock,
stock, training,
training, research
research etc.
etc.
What
What you
you need
need to
to spend
spend to
to produce
produce or
or deliver
deliver the
the new
new idea
idea into
into the
the market.
market.

Please note that this is a guide only and should neither replace competent advice, nor be taken, or relied upon, as financial or
professional advice. Seek professional advice before making any decision that could affect your business.

In association with The Small Business Company Limited. www.tsbc.com

Copyright © The Small Business Company Limited. All rights reserved.

Estimating your start-up costs
Life span
(years)

Equipment & assets
Extra equipment e.g., vehicles, cleaning equipment

$

-

1

Extra office equipment, e.g., computer, photocopier

$

-

1

Fitting out, e.g., fittings, interior and exterior design

$

-

1

Initial stock, e.g., merchandise, components

$

-

Initial lease payments (new equipment etc)

$

-

Licence fees

$

-

Stationery e.g, letterhead, pens, pencils, paper

$

-

Initial promotion costs, e.g, web design, signs, brochures

$

-

Public relations fees

$

-

Adviser fees, e.g., consultant charges, accountant fees

$

-

Training costs. e.g., TAFE course fees

$

-

Additional insurance

$

-

Other

$

-

Purchase cost of existing venture (include legal fees etc)

$

-

Franchise and other fees to be paid

$

-

Total Capital costs

$

-

Other 'one off' costs

Start-up
Start-up costs
costs
Complete
Complete the
the details
details in
in the
the boxes
boxes to
to calculate
calculate your
your
start-up
start-up costs.
costs.
This
This spreadsheet
spreadsheet calculates
calculates the
the set
set up
up costs
costs of
of your
your
idea.
idea. These
These are
are what you
you will you
you need
need to
to buy
buy or
or
pay
pay for
for before
before you
you can
can get
get your
your idea
idea to
to the
the market.
ItIt is
is important
important to
to estimate
estimate these
these as
as realistically
realistically as
you
you can.
can. ItIt may
may be
be that
that you
you need
need to
to go
go away
away and
and
research
research some
some of
of these
these costs
costs before
before you
you can
can
complete
complete the
the table.
table.
Many
Many of
of these costs
costs listed
listed may
may not
not apply
apply to
to your
your
idea
idea -- in
in which
which case
case just
just leave
leave the
the field
field blank
blank or
or
change
change the
the descriptions.
descriptions.

Please note that this is a guide only and should neither replace competent advice, nor be taken, or relied upon, as financial or professional
advice. Seek professional advice before making any decision that could affect your business.

In association with The Small Business Company www.tsbc.com
Limited.

Copyright: The Small Business Company - www.tsbc.com: All rights reserved.

Your additional monthly business running costs
Equipment and assets (from Capital costs calculation).
These items have a limited life and will need to be replaced eventually. We have calculated the monthly cost of these items from your entry
in the previous Capital costs form. If you wish to ignore this factor indicate below:
Ignore replacement costs (select)

Ignore?

Additional
Additional running
running costs
costs

Equipment and assets replacement cost

$

-

Additional wages (do you need extra staff?)

$

-

Packaging

$

-

Advertising

$

-

Freight

$

-

Telephone - incl additional mobile phones etc

$

-

Electricity

$

-

Insurance

$

-

Postage, printing, stationery

$

-

Rent, rates

$

-

Hire purchase payments

$

-

Additional lease payments

$

-

Loan repayments

$

-

Repairs and maintenance

$

-

Payments to subcontractors

$

-

Other

$

-

Total Monthly costs

$

-

Each
Each month,
month, your
your business
business will
will
possibly
possibly incur
incur certain
certain additional
additional costs
costs -irrespective
irrespective of
of whether
whether you
you make
make any
any
sales
sales or
or not.
not.
Enter
Enter the
the extra
extra costs
costs you
you will
will have
have in
in
the
the boxes
boxes (exclude
(exclude any
any existing
existing costs
costs
of
of running
running your
your current
current business).
business).
This
This form
form will
will calculate
calculate your
your total
total
additional
additional monthly
monthly running
running costs.
costs.
You
You can
can alter
alter any
any of
of the
the expense
expense
categories.
categories.

Please note that this is a guide only and should neither replace competent advice, nor be taken, or relied upon, as financial or
professional advice. Seek professional advice before making any decision that could affect your business.

In association with The Small Business Companywww.tsbc.com
Limited.

Copyright: The Small Business Company - www.tsbc.com: All rights reserved.

Potential Revenue Calculator (Yearly)
Revenue

Example

Potential Revenue calculation
calculation

Your data

Maximum number of possible customers (day)

80

0

Number of days open (per year)

300

0

Total potential customers / year

24000

0

Percentage of customers who make a purchase

40%

0%

Actual number of customers (per year)

9600

0

Average sale per customer $

25

$

-

Average cost per customer $

5

$

-

$

192,000

$

-

Less additional overheads (from Monthly costs) $

12,000

$

-

Revenue Potential $ 180,000

$

-

Total potential annual revenue

1. Enter
Enter your
your estimates
estimates for
for your
your
new idea of the number of
customers and average sales you
could expect into the boxes.
2. Try
Try experimenting
experimenting with
with the
the
figures to see what impact they
have on your final net revenue
amount.
Note:
Average cost per customer field.
In some cases businesses (for
example service businesses) may
not have a cost per customer. If
this is the case for your business
then leave this field blank.

Note: This calculation includes an allowance for OVERHEADS.

Please note that this is a guide only and should neither replace competent advice, nor be taken, or relied upon, as financial or
professional advice. Seek professional advice before making any decision that could affect your business.

In association with The Small Business Company www.tsbc.com
Limited.

Copyright: The Small Business Company - www.tsbc.com: All rights reserved.

Summary of new idea assessment

Prepared by:

Date:

{Enter your name or business name here}

6 December 2015

Summary
Concept

To
To conclude
conclude
The
The value
value or
or number
number of
of sales
sales will
will
be
be affected
affected by
by the
the direct
direct cost
cost of
of
each
each sale
sale and
and the
the margin
margin you
you are
are
able
able to
to apply
apply to
to each
each sale.
sale.

Description

{Enter a description for your concept here}

Capital costs. To set up you need: $

-

Monthly costs. Your idea will incur Monthly costs of: $

-

Potential revenue. Additional revenue (after deducting annual
$
expenses) for this idea is:

-

A
A mistake
mistake businesses
businesses often
often make
make is
is
not
not including
including enough
enough profit
profit to
to cover
cover
the
the opportunity
opportunity cost
cost of
of being
being in
in
business
business -- or
or in
in other
other words
words making
making
sure
sure you
you get
get compensated
compensated for
for not
not
only
only your
your time
time in
in your
your business,
business, but
but
also
also for
for the
the investment
investment you
you have
have
made,
made, and
and for
for the
the risk
risk you
you are
are
undertaking
undertaking (as
(as opposed
opposed to
to having
having
aa relatively
relatively secure
secure job).
job).

Please note that this is a guide only and should neither replace competent advice, nor be taken, or relied upon, as financial or
professional advice. Seek professional advice before making any decision that could affect your business.

www.tsbc.com
In association
with Business
The SmallCompany
BusinessLimited.
Company
www.tsbc.com
In association
with The Small
Limited.

Copyright: The Small Business Company - www.tsbc.com: All rights reserved.

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close