It is fine to consider starting a business. There are people willing to support your services and entry into the field. Yet, whatever you business, you will probably need to apply for commercial financing to make your small business dream venture a reality. This will require you sit down and compile the items you need to address. It means you have to come up with a concise, yet thorough, business plan. While you are working on the big picture, do not forget some of the little things that are an integral part of any business plan. These, included with the more obvious items such as inventory and machinery, are the start-up costs.
Typical Small Start-Up Costs in Commercial Financing
Start-up costs are capital expenses. They involve the expenditure on both large and small items necessary to make your business function. Among the most common start up items that will cost you, so you need to make sure they are part of any commercial financing loan, are the following:
- Operating Space: You need some place in which to set up your business
- Supplies/Inventory: Of various types depending upon your business.
- Manufacturing Machinery and Equipment: This is self-explanatory
- Electronic Equipment: This refers to not the complex machinery that may form part of your production or service team. Instead, it indicates the necessary business equipment all companies, large and small, need to do business in a timely fashion. These are fax machines, computers, printers, photocopiers, scanners and similar “office” equipment
- Furniture and Fixtures: You need a desk or desks upon which to work, bookshelves, trays and perhaps desk lamps desk as well as other related items
- Office Supplies: This is an obvious category. It consists of copy paper, pens, notebooks, pencils and other similar items
- Reference books: Depending upon your business, you may want to have several reference books. Sample books may also fit in with
- Vehicle: While some people do use their own vehicle, it may be better to purchase one that is for business purposes only. It will also allow you to buy a new van or other vehicle for transportation purposes
Other Start-Up Costs
Do not forget the other items that need to be included
- Advertising: domain name, domain hosting, mailers, website design, etc.
- Legal fees: You will need a lawyer to go over the loan papers, the lease of premises and other matters. Legal fees are also part of many other aspects of a small business and certainly do come into play during the commercial financing phase
- Licenses: There are fees and other costs relating to the various types of licenses. Some are federal, some are state and some are municipal
- Permits: you will need money to pay for the requisite permits you will need to set up and operate your business
When it comes time to consider the amount of commercial financing you will require to start your business, be sure to consider every possible cost. You need to be thorough and precise. You need to look at anything and everything that is involved – all your start-up fees. You need to include them all in a comprehensive business plan to ensure the commercial financing package you receive will cover as much as possible.
At Anchor Banc we specialize in all types of Commercial Financing. We are there to provide excellent advice and expert help as you and your company try to sort its way through the process of getting an appropriate loan. If you want to learn more about how we can help your business find the right financial solution.
