In the initial phases of your business you need to spend time drawing out a list of the costs that you will be incurring while setting up your business.You will also have to estimate the amount that you would be spending under each head.The most common start up costs that you will be most likely to incurr are listed;
If you are planning to operate from home then this cost will be minimal for you,however for those planning to rent an office space should be prepared to shell out more. Remember to consider factors like the rent ofthe building,the distance from competition( this may be crucial to your success or failure)and size( whether there is scope for future expansion) while deciding on location.
If you are renting a space then every space will not be totally ready to suit your needs and you will be required to spend on making improvements to the space. you should definitely set aside money to build a proper signage to display the name of your interior decoration business.
If you are palnning to operate from home then you might not have to spend on a desk,chair,filing cabinet,chairs for your customers etc.However these will have to be bought if you are setting up your own office.Equipments that will be common to both and will be essential are a printer,scanner,copier and a computer.
You can either buy or lease all this equipment,but do keep aside money for a security deposit if you plan to lease.
Once again people operating from their homes will not require to spend on utilities such as heating,electricity,water and garbage but people who rent out an office space will have to incur these costs.You will need to put down a security deposit here too.
Very essential cost that will include your telephone,cell phone and internet.Compare and pick out plans that are the cheapest.
You will require to get your business registered and get a valid business registration number for yourself.Also small businesses have to up certain licences and permits for which certain amount of fees is payable.All the information you need regarding legal formalities can be found out from the central office of your area or from the city and county clerk and the local chamber of commerce.You could also get this work done by an attorney who will charge a small fee for his services.
There are many types of insurance that a business needs to have.The most common insurance covers will range from liabilty and property to workmens compensation insurance.You need to check out the offers made by different insurance companies to select one that suits your needs and pocket best.
8.Accounts and taxation
Another area where you will be spending is on an accountants fees and on all formalities relating to taxation that you need to complete for your new business.
Another very important start up cost since a proper research will be the key to your future profitability.The market research can be done by you or you can hire the services of many small firms that will do the job for you. Needless to say the costs will be less if you do it yourself.
10.Reference books and resources
A very important investment for you initially would be to buy good resource books on interior designing business and on the various aspects of design. You should also invest in buying books which can provide you with new design ideas. This will help you to understand the business better and will come in handy when you begin to get orders.
11.Advertising and marketing.
This is very important in your start up stage to let people know of your business. This expense can include money to be spent on printing business cards,brochures,pamphlets,Fliers advertising your business and also in holding meetings and arranging for free presentations on interior designing and promoting your business in offices,among suppliers and in clubs and associations.
Today every business has a website since this is a very effective tool to promote your business and reach out to clients.A website can reach out to many more people than traditional advertising and will also serve as a channel for sales.Associated costs may include website design, web-hosting fees, implementing ecommerce software, registering a domain name and setting up a merchant account.You will not need a very high profile site design and the job can be done by a web designer for a small fee.
These are some of the common costs that you will incurr at the time of starting your business.This is an indicative list and you can add on more costs if you feel teh need to do so.