On Wednesday, October 20th, we hosted a #StartupChats all about Managing Startup Costs for Your Business. We wanted to share insights and knowledge about the true costs of starting a business.
We were joined by two great experts;
Jason Charlebois, Senior Vice President, Small Business Banking and Canadian Banking at Scotiabank
Jasmine Williams, Founder and CEO of Jasmine Williams Media
What are startup costs for business owners?
A1 – You typically divide into variable and fixed costs.
Variable (one time costs) – licenses, permits, incorporation fees, website design, equipment, etc
Fixed – Rent (aside from downpayment) taxes, professional services, utilities etc#StartupChats
— Colin McGuire (@realColinMac) October 20, 2021
A3: Different industries can have unique startup costs. For example, a business service may include computer and office equipment, software and connectivity.
For a manufacturer, these could also include complex machinery on top of software and computers. #StartupChats https://t.co/VO5bXGrzHO
— Scotiabank (@scotiabank) October 20, 2021
A1 They’re the costs of setting up a business. For my online business, initial costs included a laptop, website (hosting, domain, etc.), software (e.g. GSuite), business registration, and professional services (e.g. legal and accounting consultations). @Scotiabank #StartupChats https://t.co/PGAUOjmi7r
— Jasmine | Copy + Content Strategy (@TheJasWilliams) October 20, 2021
How do startup costs differ across industries?
A3: It depends on the industry and the needs of the business. Even the entity you choose to incorporate as can factor in startup costs. #StartupChats
— MyCorporation (@MyCorporation) October 20, 2021
A3: Different industries can have unique startup costs. For example, a business service may include computer and office equipment, software and connectivity.
For a manufacturer, these could also include complex machinery on top of software and computers. #StartupChats https://t.co/VO5bXGrzHO
— Scotiabank (@scotiabank) October 20, 2021
A3 For an online biz, you might not need office space or furniture. For a product-based biz, there’s the cost of inventory + fulfillment. Compared to other biz types, a freelance online biz is relatively cheap to start, esp. if you already have a good computer. #StartupChats https://t.co/k0ZMBU6zvl
— Jasmine | Copy + Content Strategy (@TheJasWilliams) October 20, 2021
How can entrepreneurs reduce their startup costs?
A5 Do your research! Ask around for recommendations, don’t just go with the first option you find. Also, remember that you can always upgrade. E.g., you can test out the free version of software vs. investing in a full-year subscription. @Scotiabank #StartupChats https://t.co/ALnQKVtjkF
— Jasmine | Copy + Content Strategy (@TheJasWilliams) October 20, 2021
A5. Don’t rent an office before you absolutely need to. Manage multiple parts of your businesses by yourself, or start by hiring freelancers. Shop for best raw material prices #StartupChats pic.twitter.com/3cpsNKWkj6
— Naina Kansal (@kansal_naina12) October 20, 2021
A5 – No job is too big, nor too small. Most founders want to hire prematurely, when they need to be taking on most jobs themselves.
Likewise, new equipment and office space, etc those are luxuries. Earn your way to upgrades, do what you can with what you have.#StartupChats https://t.co/4UQpFRBUJk
— Colin McGuire (@realColinMac) October 20, 2021
You can continue to learn from these experts and entrepreneurs by viewing the entire transcript of this event. As always you can join us for #StartupChats on Wednesdays from 12-1pm ET!