Knowing the exact costs of starting and running your business is very much important before you take a start. Consulting businesses normally do not require a large capital investment at first. By this very statement I mean you start your consulting business while remaining in budget.
This article will detail you about all possible investments that you need to make initially as well as the running or operating costs. We will also discuss the points through which you can eliminate some huge expenses.
1- Office Setup: of course it depends on the location you select. You may think of starting from home, but if you are able to, must consider operating out of your home.
2- Overhead Expenses: if you are operating from home then of course you don’t have to worry about rent and utilities, but when it comes to a separate office, add these expenses in the list too.
3- Salaries: No matter you are operating from your home or have a separate setup, if you need and have a staff, you need to pay them. We recommend outsourcing as it will save you the setup cost for staff.
4- Other Expenses: of course you will have to travel, i.e. to meet people and to entertain them with tea/coffee if they visit you, so keep a petty cash account for that.
Besides saving lot of costs with a home based setup (till you get a good clientele) there’re lots more benefits of operating from home. Flexible working hours, no rush-hour nightmares, tax-deductible setup etc are some of the most common advantages. So, do consider operating from home if you have limited budget and you are new to the business.