Starting a business venture is a thrilling experience especially if you are pursuing something that is your dream and passion.
But having a business is not all about the fun and thrill because it also poses a challenge. One important challenge will be the expenses involved in starting a business. Here are the common costs of starting up a business:
BUSINESS REGISTRATION AND LICENSES:
When you are starting a business, you have to be sure that it is legal so that you won’t have future headaches.
This cost includes registration fees with the Securities and Exchange Commission (for partnerships and corporations), DTI (for sole proprietorship), BIR, Mayor’s permit, and other related government agencies. Also, many of these papers and documents are renewed annually.
Also, as a part of making your business legal, you may also need to pay attorney’s fee for notary and necessary contract of agreement.
OFFICE SPACE AND BUILDING IMPROVEMENT
When you are just starting a business you can try opening a space in your house or garage. But if you own a building space, you need to improve it and prepare it for your business.
If you don’t have any space readily available, you may need to rent. This will add to your monthly expenses, and thus one of the major costs when opening even a small business.
This cost includes the following: VAT, annual income tax, local taxes. These taxes will depend on the amount of your initial capital or gross sales.
FURNITURE AND EQUIPMENT
It is true that when you are just starting a business you must utilize the things that you already have. But if you want your clients to treat your business seriously, then your business place should look professional with complete basic necessities such as chairs, tables, computers and any necessary items in line with your business.
ELECTRIC AND WATER BILLS
This cost will be a part of your monthly expenses. You cannot operate a business without water and electricity.
TRAVEL AND TRANSPORTATION
If you are doing business in Metro Manila, transportation costs not only the money for buying fuel but also it will cost you your time due to heavy traffic congestion.
INTERNET AND COMMUNICATION
This cost will include your monthly internet consumption and telephone bills especially if you are trying to market online. You can cut down these expenses by choosing a reliable phone and internet package.
EMPLOYEE SALARIES AND BENEFITS
When you are starting a small business, you may prefer to start it alone. But there are certain businesses where you need to hire employees. You also need to enroll them in SSS, or Philhealth in accordance with the law.
Those are the basic cost when you are starting a business. Are you ready to take the challenge?