Starting a new company requires a capital investment to cover initial operating costs. The amount of money necessary to start a new company will vary depending upon the goods or services to be provided and the other initial expenses associated with getting the organization up-and-running.
It is always best to try to reduce costs when a company begins its initial operations in order to minimize the potential risk of loss. An experienced San Jose corporate lawyer can help you to make an assessment of how much money you will need to start a San Jose business so you can be prepared to secure a sufficient amount of financing. Call the Law Offices of Mike Ross today to speak with a knowledgeable attorney who has helped many startups to open their doors and become a business success.
How Much Money is Necessary to Start a San Jose Business?
The initial cost to start a San Jose business is different for every new company. To determine how much money you need, you must begin by crafting a business plan. The plan should specify exactly what products or services your company will provide; how to reach your target audience; what your company goals are; and what the steps are to becoming profitable. With a detailed business plan, you can make an assessment of the funds you need to get started.
Some of the different costs you may need to pay when you start a San Jose business include:
- Licensing fees for any necessary professional, state or local licenses. For example, there is a cost for a liquor license or a cost to take necessary state-level tests to become a licensed CPA or licensed doctor in the state of California. You will need to pay for these expenditures before starting an accounting business; medical business or restaurant if you do not already have the necessary licensing.
- The cost of office space. While some small businesses are run out of private homes, there may be zoning restrictions that preclude this. If you need separate office space, you must factor in the cost of purchasing or renting a commercial property.
- The cost of manufacturing. If you are planning on selling a product, you need to factor in the cost of paying to have the product manufactured or of purchasing raw materials and creating the product yourself. Because of the high initial costs of setting up the manufacture of a product, product-based businesses usually have higher startup expenses than service-based businesses.
- The cost of hiring employees. You not only must pay for the salary of any employees you need, but must also pay for required benefits; workers’ compensation insurance and unemployment insurance.
- The cost of a website, phone and fax. You must be able to be connected to customers and have a way for people to reach your business.
- The cost of marketing. Customers need to know that your company has opened its doors and begun operations.
These are just a few of the different things you need to budget for when planning how much money you need to start a San Jose business. The Law Offices of Mike Ross has extensive experience helping startup companies to create an operating budget and to prepare to open their business. Call today to schedule a consultation with a San Jose corporate lawyer and learn more.