Start-up costs calculator

When analysing if you should develop a new idea or not, then there is no point going any further if 1. Enter Capital costs.
you cannot make any money.
2. Enter Monthly costs.
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. 3. Go to Revenue calculator.

Often the new idea drains your cash, time, employee time and other resources. Remember that 4. View the Summary.
locking in core business should always be a priority.
Use the sheet tabs at the
There are two key financial areas that you need to address. These are: bottom of the screen to
navigate to these sections.
1. The potential revenue
How much you can possibly make depending on your capacity and pricing.

2. The costs
The 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.

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.

In association with The Small Business Company Limited. www.tsbc.com

Copyright © The Small Business Company Limited. All rights reserved.

 Estimating your start-up costs
Life span
Equipment & assets (years)
Extra 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' costs

Start-up costs
Initial stock, e.g., merchandise, components $ - Complete the details in the boxes to calculate your
start-up costs.
Initial lease payments (new equipment etc) $ -
Licence fees $ - This spreadsheet calculates the set up costs of your
idea. These are what you will you need to buy or
Stationery e.g, letterhead, pens, pencils, paper $ -
pay for before you can get your idea to the market.
Initial promotion costs, e.g, web design, signs, brochures $ -
It is important to estimate these as realistically as
Public relations fees $ -
you can. It may be that you need to go away and
Adviser fees, e.g., consultant charges, accountant fees $ - research some of these costs before you can
complete the table.
Training costs. e.g., TAFE course fees $ -
Additional insurance $ - Many of these costs listed may not apply to your
idea - in which case just leave the field blank or
Other $ -
change the descriptions.
Purchase cost of existing venture (include legal fees etc) $ -
Franchise and other fees to be paid $ -

Total Capital costs $ -

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.

In association with The Small Business Company Limited. www.tsbc.com

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

 Your additional monthly business running 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) Ignore? Additional running costs

Equipment and assets replacement cost $ - Each month, your business will
possibly incur certain additional costs -
Additional wages (do you need extra staff?) $ - irrespective of whether you make any
Packaging $ - sales or not.
Enter the extra costs you will have in
Advertising $ - the boxes (exclude any existing costs
Freight $ - of running your current business).
Telephone - incl additional mobile phones etc $ - This form will calculate your total
Electricity $ - additional monthly running costs.
Insurance $ - You can alter any of the expense
Postage, printing, stationery $ - categories.
Rent, rates $ -
Hire purchase payments $ -
Additional lease payments $ -
Loan repayments $ -
Repairs and maintenance $ -
Payments to subcontractors $ -
Other $ -

Total Monthly costs $ -

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.

In association with The Small Business Company Limited. www.tsbc.com

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

 Potential Revenue Calculator (Yearly) Potential Revenue calculation

1. Enter your estimates for your

Revenue Example Your data new idea of the number of
customers and average sales you
Maximum number of possible customers (day) 80 0 could expect into the boxes.
Number of days open (per year) 300 0 2. Try experimenting with the
figures to see what impact they
Total potential customers / year 24000 0 have on your final net revenue
Percentage of customers who make a purchase 40% 0% amount.

Actual number of customers (per year) 9600 0 Note:

Average cost per customer field.
Average sale per customer $ 25 $ - In some cases businesses (for
example service businesses) may
Average cost per customer $ 5 $ - not have a cost per customer. If
this is the case for your business
Total potential annual revenue $ 192,000 $ - then leave this field blank.
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.

In association with The Small Business Company Limited. www.tsbc.com

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

Summary of new idea assessment

Prepared by: Date:

{Enter your name or business name here} 16 March 2023

Summary
Concept To conclude
The value or number of sales will
be affected by the direct cost of
each sale and the margin you are
Description able to apply to each sale.

A mistake businesses often make is

{Enter a description for your concept here} not including enough profit to cover
the opportunity cost of being in
business - or in other words making
sure you get compensated for not
Capital costs. To set up you need: $ - only your time in your business, but
also for the investment you have
made, and for the risk you are
Monthly costs. Your idea will incur Monthly costs of: $ - undertaking (as opposed to having
a relatively secure job).
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.

In association
In association with
with TheThe Small
Small Business
Business Company
Company Limited.www.tsbc.com
Limited. www.tsbc.com

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