When starting a business you should know that you will need a substantial amount of money to begin, but how much is that exactly? That price point will depend on the cost of living in the area where you choose to start your business. For example, starting a business in New York will demand a higher price point versus starting up your service in the middle of nowhere Ohio. Also, it will depend, on a lesser degree, on your own taste and preferences.
The first cost will depend on whether you start your business off in your home or if you choose to rent a place. If you are looking to keep your budget on the lower end of things to begin with, skipping out on renting office place is a great place to start. Although you need to keep in mind that if you plan on keeping your business on a smaller budget the events that you plan will follow suit.
The following chart that I found on www.entepreneur.com shows the start up costs of two hypothetical event planning services. Showing the higher and lower end of the business.
|Licenses and Taxes||$250||$350|
|Legal Fees & Accounting||$650||$1,500|
|Insurance (1st Quarter)||$800||$1,700|
A few tips to keep in mind are make sure that you are following all the federal regulations for starting up a business — from applying for a business license to establishing your businesses name correctly. All of these “small” steps can quickly break down a booming business if not taken care of correctly at the beginning. Last, but not least, having a business plan is crucial. Although flying by the seat of your pants may be fun for a while, if you don’t have a plan eventually you will find yourself in a situation that could have been easily avoided.