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Your start-up costs are the expenses you’ll incur before your business generates an income.

There are many costs that come with setting up a business and different businesses will have different setup costs. Go through the below steps to work out how much it may cost to start your business.

1. Research expenses

Before you start your business you should conduct market research on your potential industry to make sure that your product or service will be profitable. You'll need to gather information on your market, potential customers and what your cost of production will be.

Through this process, you may identify other costs to start your business, such as staff or marketing costs. Research each element so you can identify and plan for your costs.

2. Identify your start-up costs

Your start-up costs will depend on the type of business you're starting, your business structure and the industry you're entering. Expenses common to all business types, include:

Start-up costs are your one-off costs associated with setting up a business.

Determine your running costs

It's a good idea to make sure you to be able to cover 6 months’ worth of running costs up front when you are starting a business.

Running costs are the day-to-day expenses associated with operating your business. It is the amount of money you will regularly spend on things such as wages, rent and buying stock.

3. Create a start-up costing sheet

Once you have your list of expenses, enter them into a spreadsheet. If you’re using estimated costs, you'll need to label them clearly and state whether your figures are GST inclusive or exclusive.

Download the start-up costing template