Carry The Three…: Tips For Calculating Start Up Costs
You can’t create a realistic business plan without knowing how much it will cost to get your business up and running. If you don’t have an idea of your startup costs, you won’t know how long you’ll have to bootstrap, how much funding you’ll need, how quickly to scale. In other words, without calculating your startup costs, you don’t really know where you’re going — or how you’re going to get there. And your company could fail before you even hit the break-even point.
Some entrepreneurs believe that calculating their costs is all about listing and tallying their cash outlays. This is an essential step, of course, but calculating startup costs is much more than a simple exercise in addition. Equally important is to set some milestones and build your financial plan around hitting these goals.
#1: Identify Your Milestones
To determine the major milestones for your company, you need to assess where you are and where you want to be.
To continue reading this step and four more in Black Enterprise’s guest column click here.