the cost of setting up a business
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The cost of businessPresented by xx, xx Date xx May, 2012
Overview
What is the true cost of setting up a business?
What are the key expenses in launching a business?
Is there a way to control your costs?
Year one – Key business costs
Set-up and Registration
Accountancy and Tax
Premises
Staff costs
Running the business
Website and Marketing
Cash management & Factoring
Competitors
Customers
Suppliers
Copyright Patents
Staff
Tech
Skills
Finance
Marketing
Cash flow
The Business Plan
Set-up and registration From £250
Company Formation
• Private limited company (Ltd)
• Partnership
• Limited liability partnership (LLP)
• Sole trader
Requirements
• Unique name
• Preparing the memorandum and articles of association
• Filing incorporation docs
• Registering for country tax
• Signing up for employers’ liability insurance
Accountancy and tax Allow £800
Book keeping
Annual Tax Returns
Payroll
Audit
Accountant
Premises
Home working
Long lease office space
Serviced offices
Mobile working
From £200
Staff
+
Wages Cost considerations
Cos
t of s
taff
Holiday pay
Absences
Employers tax
Insurance premiums
Administrative costs
Maternity/Paternity pay
40-100% additional cost
From £2500
Running the Business
Office Furniture
Legal
Health & Safety
Direct mail
Marketing
ITPhone support
Data Recovery
Security
Cleaning
Maintenance
Software
Hardware
Systems
Approx £1000
Stationery
Reception
Website and Marketing From £500
Brochures
Stationery print costs
Promotion
Website costs
Advertising
Cash management & Factoring
1 in 3 start-up business failCash flow problems key cause
Fees: 1.5 - 3% over base rate
Admin: 0.75 - 2.5% turnover
Cash flow solution includes:
InvoiceFactor/ Bank
85%
Collects debt
Invoice Bank
Up to 90%
Collects debt
From £200
Fees: 1.5 - 3% over base rate
Admin: 0.2 - 0.5% turnover
Invoice DiscountingFactoring
And finally…Remember
Watch out for the up sell
Don’t spend money on things you don’t really need
Factor in the cost of your time