Launching a startup doesn’t have to be as daunting as it sounds. As a new entrepreneur, there will be loads of things to consider when it comes to setting up your new startup office space, and it’s likely the biggest question on your mind is, what do startup costs include?
There can be a range of startup costs to consider, and you’ll need to start drafting a thorough business plan to estimate your business startup costs. By establishing a solid base for you and your new team, you can set yourself up for success. A serviced office space can offer heaps of cost-effective benefits when looking for a startup office.
We’ve created a useful guideline on some of the most important startup costs to factor in when building your plan.
What are startup costs for a small business?
Drafting a business plan is an ideal way for mapping out all of the business startup costs you’ll need to consider. Within this plan will be financial projections estimating revenue, profit and expenses for the next three years at least.
It’s a good idea to be able to cover at least six months’ worth of your total expenses in advance. This way, you’re not relying on revenue to fund anything, so it can help ease costs and allow you to focus on growing your business to a more profitable state. From office space costs to payroll, here’s a good place to start when considering business startup costs.
Here are some startup cost examples:
Insurance
First things first, your business needs the same protection you provide to other aspects of life such as health, home or car. Each new business will have different priorities in terms of risk protection, so you’ll have different types of business insurance to choose from.
The type of insurance your new business startup needs will vary depending on your industry, number of employees and other risk factors. Compose thorough research on cover to find suitable insurance for your business.
Professional fees
Take into consideration the legal aspects of launching a startup. Hiring an accountant, solicitor, lawyer, or other expert professional may be needed to deal with certain aspects, from copyright protection or drafting partnership agreements.
Office space costs and utilities
Finding a startup office space will involve monthly expenses you’ll need to factor into your fixed monthly fees. Renting a shared office space is a fantastic way of keeping costs low.
The benefits of business essentials from superfast broadband, admin support, and meeting rooms to luxuries like onsite showers and coffee shops are all included in your monthly rental fee. With utilities bills also included, a serviced office is an ideal option for a startup space, as you have less to worry about when setting up.
Staffing and payroll
You’ll need to take into consideration the number of staff you’ll have on your payroll. Will you be hiring employees on a full-time wage, or will the flexibility of freelancers be more suitable?
More staff means you will need a bigger startup office space, but you will need to decide which option is the best financial fit for your business. When hiring full-time staff, don’t forget to consider payroll extras, such as net pay, bonuses, overtime, and annual leave. Typically, an employee will cost 1.25x to 1.4x their actual salary after factoring in payroll tax costs and insurance.
Equipment and technology
Office furniture and supplies can add up surprisingly quickly. With every employee needing a desk, chair, phone as well as kitchen appliances, it can become a big cost. This is another reason why a serviced office space is an excellent investment for startups. With most of the equipment you could need to get set up cost-effectively, you’ll also be able to make a swift move into your new startup office since everything is already ready to go. It’s a no brainer.
Marketing
An essential for any business, you will need to ensure the marketing budget is included in your business plan. The best thing about marketing is how many channels there are to explore. You can utilise free tools like social media and organic search to boost your visibility to your customers or clients. However, don’t underestimate the power of paid advertising, influencer marketing and PR agencies that will have a cost but a strong return on investment.
Find your new startup office space
Now that you’ve established that a startup office space is a strong investment in your startup future, where do you begin looking for the right startup space for you? We can connect you with a huge range of attentively designed workspaces providing flexible and effective working environments to suit your business. With an incredible range of inclusions, from superfast WiFi, staffed receptions, IT support and professional yet innovative breakout spaces, you’ll be fully taken care of with a serviced office space.
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The working environment has drastically changed over the past few years. Many major businesses are giving up their private office space altogether and looking for more flexible, hybrid options. Coworking spaces and shared offices provide that level of flexibility whilst providing a professional, kitted out base for your team.
Speak to the Easy Offices team today to let us know your requirements, and we’ll match you up with the perfect startup office space.