We’re back with part three of our four-week series on Pre-Business Expenses. If you missed our previous entries, you can check out part one on Training Certificates and Coaches and part two on Meal and Travel.
Today we will tackle pre-business expenses on tools and supplies. In the beginning stages of starting your own business, its important to know what supplies you will need to run your business. That way, you can accurately plan out your budget and you will have a clear idea of the amount of business supply expenses to write off come tax season.
We will cover the possible tools and supplies you will need to start your business strong before you register and incorporate, and the best ways we’ve found to keep track of business costs.
What Tools Does Your Business Need?
It depends. What type of business will you be operating? An e-commerce business? A service? Knowing the category of your business will allow you to determine what tools you will need.
Here’s a list of some common things new business owners might need:
- Office space
- Equipment and supplies
- Licenses and permits
- Lawyer and accountant
- Employee salaries
- Advertising and marketing
- Market research
- Printed marketing materials
Once you determine what you need versus what would be nice, calculate how much each item will cost. This might seem daunting, but a quick internet search can be really helpful.
What Services or Fees Do You Need to Pay For?
Service fees can definitely sneak up on you later in your business operations, so its important that you account for them during the early stages of your business.
Some examples of services and fees to account for include:
- Branding materials
- Fees for filing paperwork
- Usage fees for payment merchants
- Website hosting
- Shipping costs
- Photo/Graphic creation memberships
- Email marketing
- Ad campaigns
How To Be Smart About Start-Up Costs
In this crucial stage of starting your business, keeping your costs as low as possible should be a top priority. You want to start in a strong financial position if you can.
CorePro8 has the information you need on how to setup your business, including step-by-step guidance on registering and/or incorporating your business online and advice on things like sales tax, payroll, and bookkeeping. Your investment in the CorePro8 program will be considered a business expense, so you will be able to write it off come tax season!
If you are in need of extra funding to get your business up and running, there are people who are excited and prepared to help you! Two great resources that we recommend you check out are Alberta Women Entrepreneurs (AWE) and ATB Bank.
You are in charge. This is YOUR baby so you are the best person to determine what you need and how to get it. There are so many free tools online that are great for starting a business. Use them!
Thankfully, you are starting at a time when small-business owners are cheering each other on and the cultural attitude toward businesses is shifting. It’s by no means easy, but you can do this! You have the tools.