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The Cost of Setting up a Business

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The Cost of Setting up a Business

  1. 1. The cost of businessPresented by xx, xx Date xx May, 2012
  2. 2. OverviewWhat is the true cost of setting up a business?What are the key expenses in launchinga business?Is there a way to control your costs?
  3. 3. Year one –Key business costs Set-up and Registration Accountancy and Tax Premises Staff costs Running the business Website and Marketing Cash management & Factoring
  4. 4. The Business Plan Skills Competitors Suppliers Staff Cash flow Marketing Customers Tech Finance Copyright Patents
  5. 5. Set-up and registration From £250Company Formation• Private limited company (Ltd)• Partnership• Limited liability partnership (LLP)• Sole traderRequirements• Unique name• Preparing the memorandum and articles of association• Filing incorporation docs• Registering for country tax• Signing up for employers’ liability insurance
  6. 6. Accountancy and tax Allow £800AccountantBook keepingAnnual Tax ReturnsPayrollAudit
  7. 7. Premises From £200Home workingLong lease office spaceServiced officesMobile working
  8. 8. Staff From £2500 Holiday pay Wages Cost considerations Absences Employers tax Cost of staff Insurance premiums + Administrative costs Maternity/Paternity pay 40-100% additional cost
  9. 9. Running the Business Approx £1000 Office Furniture Hardware Maintenance Legal Security Health & Safety Marketing Stationery IT Software Direct mail Phone support Reception Cleaning Data Recovery Systems
  10. 10. Website and Marketing From £500BrochuresStationery print costsPromotionWebsite costsAdvertising
  11. 11. Cash management & Factoring From £2001 in 3 start-up business failCash flow problems key causeCash flow solution includes: Factoring Invoice Discounting Factor/ Invoice Invoice Bank Bank 85% Up to 90% Collects Collects debt debt Fees: 1.5 - 3% over base rate Fees: 1.5 - 3% over base rate Admin: 0.75 - 2.5% turnover Admin: 0.2 - 0.5% turnover
  12. 12. And finally…RememberWatch out for the up sellDon’t spend money on things youdon’t really needFactor in the cost of your time