1. carefully plan the costs for the start-up
Before a company can get started, various costs are already incurred. For example, for consulting, start-up seminars or software to plan the foundation. These are pre-establishment costs. However, the total capital required to start a business is significantly higher. The entrepreneur-to-be must already think about his investments in the run-up to the start-up. his for example includes, the laptop, the operating and business equipment and possibly the warehouse.
All of this must be reflected in the overall capital planning. However, there are other costs as well. If the entrepreneur starts with a company, i.e. a UG or a GmbH, between 500 and 2,000 euros can quickly add up. Further costs arise if the founder consults a specialist lawyer or a management consultant and possibly registers a trademark. This can quickly add up to several thousand euros in start-up costs.
2. Market entry costs are often underestimated
Apart from these costs, which are connected with the "formal" foundation of a company, the most important thing is still to come, namely the market entry. That is, how the company wants to present itself to the market. This starts with the business cards, which may be created through an agency that accompanies the strategic positioning of the company to be founded and advises the entrepreneur. A keyword/SEO analysis or a competitive analysis are just as much a part of this as a website or market entry campaign via social media such as Facebook and other channels.
These things really go into the money and costs of five, ten, twenty or thirty thousand euros in market entry costs can quickly arise here. If an office or store is to be rented, there are also costs for the broker's commission and the deposit, which can sometimes be as much as six months' rent. Possible conversion measures and space development costs must also be taken into account.
3. the fixed and variable costs also belong in the financial plan.
For many people, the financial planning for the company to be founded ends with the preparation of the market entry costs. However, this does not cover the costs by a long shot. The running costs must also be included in the financial planning. A distinction is made here between fixed costs and variable costs. Fixed costs are the regularly occurring fixed costs such as rent and ancillary costs, electricity deductions, insurance, accounting costs, etc. They must be taken into account in the same way as personnel costs. They have to be considered as well as the personnel costs for employees and other service staff. Finally, there are also the variable costs. These include the ongoing costs for consumed products or goods for the online store, which must be continuously reordered when sales take place.
External service providers or third-party suppliers are also included if the entrepreneur works together with them. Interest for capital services and taxes are also included in this cost block. What remains after deduction of all costs of the incomes is then the entrepreneur salary, which can vary in dependence on the conversion from month to month.
4. everything depends on the sales development
One thing is clear: A laptop, software, office equipment, etc. must be purchased in order to get started in the first place. If you can already plan your sales development, you will know approximately from the sales curve when the company can bear the costs or when the break-even point, i.e. the break-even point, is reached. From this point on, the company generates profits.
If the company can even support itself, then the entrepreneur's salary is already included. Many start-up entrepreneurs make the same mistake over and over again when writing their first financial plan. Although they know their complete capital requirements and the revenue potential of their business idea, they still forget one thing: the company does not generate the revenue to cover its running costs on the very first day after entering the market.