How much cash do you really need to launch a business?

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Getting an ABN and setting up your website are cheap first steps - but there are plenty of costs that come after.

One of the trickiest things about launching a business is that there’s no one price tag for start-up costs.

Council of Small Business Organisations of Australia chief executive Luke Achterstraat says the amount of cash you need to part with to get up and running can vary wildly depending on your industry, space requirements and staffing.“The financial outgoings can be quite significant. It can be thousands of dollars. It can be tens of thousands of dollars. It just depends,” he says.

“We have recently seen big increases in insurance costs, but most businesses will need some kind of insurance.” “Pretty much all new leases will require a bond, and that will usually be four-to-six months’ rent,” founder of business law firm Artemide Law, Olivia Hitchens, says.“In addition to putting up a bond, there are also all the ancillary costs of taking up a lease, including the fit out and levies.”Commercial leasing rates will vary depending on your state and area of operation.

“Work through a detailed budget on your set-up and early operating cost while you build your revenue – and then double it,” he says. He discovered a promising charging technology in the UK that connected to existing kerbside infrastructure, like power poles, and wanted to bring it to Australia.

 

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