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Start-up costs calculator

Please note that this is a guide only and should neither replace competent advice, nor be taken, or relied upon, as financial or professional advice. Seek professional advice before making any decision that could affect your business.

1. Enter Capital costs.

2. Enter Monthly costs.

3. Go to Revenue calculator.

4. View the Summary.

Use the sheet tabs at the bottom of the screen to navigate to these sections.

When analysing if you should develop a new idea or not, then there is no point going any further if you cannot make any money.

Many businesses make the mistake of coming up with a really good idea to add to their business, only to never work out if they can make a profit.

Often the new idea drains your cash, time, employee time and other resources. Remember that locking in core business should always be a priority.

There are two key financial areas that you need to address. These are:

1. The potential revenueHow much you can possibly make depending on your capacity and pricing.

2. The costsThe cost of purchasing the required equipment, obtaining licenses, stock, training, research etc. What you need to spend to produce or deliver the new idea into the market.

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Estimating your start-up costs

Equipment & assetsExtra equipment e.g., vehicles, cleaning equipment $ - 1

Extra office equipment, e.g., computer, photocopier $ - 1

Fitting out, e.g., fittings, interior and exterior design $ - 1

Other 'one off' costsInitial stock, e.g., merchandise, components $ -

Initial lease payments (new equipment etc) $ -

Licence fees $ -

Stationery e.g, letterhead, pens, pencils, paper $ -

Initial promotion costs, e.g, web design, signs, brochures $ -

Public relations fees $ -

Adviser fees, e.g., consultant charges, accountant fees $ -

Training costs. e.g., TAFE course fees $ -

Additional insurance $ -

Other $ -

Purchase cost of existing venture (include legal fees etc) $ -

Franchise and other fees to be paid $ -

Total Capital costs $ -

Life span (years)

Please note that this is a guide only and should neither replace competent advice, nor be taken, or relied upon, as financial or professional advice. Seek professional advice before making any decision that could affect your business.

Start-up costsComplete the details in the boxes to calculate your start-up costs.

This spreadsheet calculates the set up costs of your idea. These are what you will you need to buy or pay for before you can get your idea to the market.

It is important to estimate these as realistically as you can. It may be that you need to go away and research some of these costs before you can complete the table.

Many of these costs listed may not apply to your idea - in which case just leave the field blank or change the descriptions.

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Copyright: The Small Business Company - www.tsbc.com: All rights reserved.

Your additional monthly business running costs

Ignore?

Equipment and assets replacement cost $ -

Additional wages (do you need extra staff?) $ -

Packaging $ -

Advertising $ -

Freight $ -

Telephone - incl additional mobile phones etc $ -

Electricity $ -

Insurance $ -

Postage, printing, stationery $ -

Rent, rates $ -

Hire purchase payments $ -

Additional lease payments $ -

Loan repayments $ -

Repairs and maintenance $ -

Payments to subcontractors $ -

Other $ -

Total Monthly costs $ -

Equipment and assets (from Capital costs calculation).

These items have a limited life and will need to be replaced eventually. We have calculated the monthly cost of these items from your entry in the previous Capital costs form. If you wish to ignore this factor indicate below:

Ignore replacement costs (select)

Please note that this is a guide only and should neither replace competent advice, nor be taken, or relied upon, as financial or professional advice. Seek professional advice before making any decision that could affect your business.

Additional running costs

Each month, your business will possibly incur certain additional costs - irrespective of whether you make any sales or not.Enter the extra costs you will have in the boxes (exclude any existing costs of running your current business).

This form will calculate your total additional monthly running costs.

You can alter any of the expense categories.

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Copyright: The Small Business Company - www.tsbc.com: All rights reserved.

Potential Revenue Calculator (Yearly)Revenue Example Your data

Maximum number of possible customers (day) 80 0

Number of days open (per year) 300 0

Total potential customers / year 24000 0

Percentage of customers who make a purchase 40% 0%

Actual number of customers (per year) 9600 0

Average sale per customer $ 25 $ -

Average cost per customer $ 5 $ -

Total potential annual revenue $ 192,000 $ -

Less additional overheads (from Monthly costs) $ 12,000 $ -

Revenue Potential $ 180,000 $ -

Note: This calculation includes an allowance for OVERHEADS.

Please note that this is a guide only and should neither replace competent advice, nor be taken, or relied upon, as financial or professional advice. Seek professional advice before making any decision that could affect your business.

Potential Revenue calculation

1. Enter your estimates for your new idea of the number of customers and average sales you could expect into the boxes.

2. Try experimenting with the figures to see what impact they have on your final net revenue amount.

Note: Average cost per customer field.In some cases businesses (for example service businesses) may not have a cost per customer. If this is the case for your business then leave this field blank.

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Summary of new idea assessment

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Prepared by: Date:{Enter your name or business name here} 22 April 2023

SummaryConcept

Description

{Enter a description for your concept here}

$ -

$ -

$ -

Capital costs. To set up you need:

Monthly costs. Your idea will incur Monthly costs of:

Potential revenue. Additional revenue (after deducting annual expenses) for this idea is:

Please note that this is a guide only and should neither replace competent advice, nor be taken, or relied upon, as financial or professional advice. Seek professional advice before making any decision that could affect your business.

To concludeThe value or number of sales will be affected by the direct cost of each sale and the margin you are able to apply to each sale.

A mistake businesses often make is not including enough profit to cover the opportunity cost of being in business - or in other words making sure you get compensated for not only your time in your business, but also for the investment you have made, and for the risk you are undertaking (as opposed to having a relatively secure job).

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