Business Plan Startup Costs

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However, if you are organized and thorough, you can plan out your financing and keep your startup budget on track.In the tech arena, for example, Sposato says he’s seen legal fees range from ,000 to ,000, depending on such variables as the company’s legal structure and whether the owners have intellectual property to protect through patents.If you hire people to work for your business, your additional expenses will include not only their salaries, but also things like recruitment costs, payroll taxes and training.You may not need to hire a lawyer to help set up your business if you’re doing a sole proprietorship.But you’ll probably need that expertise if you’re forming a partnership, a limited liability company, a C corporation or an S corporation.“But I think the key is to have something thoughtful and dependable to get a potential investor to move (your proposal) from the left side of the desk to the right.” If you’re considering a personal loan to help you get your business off the ground, compare rates at To arrive at a number that an investor will find credible, you’ll need to take marketplace averages into consideration, says Jonathan Sposato, CEO of Pic Monkey, a Seattle-based company that created a photo-editing application for the Web.Sposato is a serial entrepreneur who sold 2 of his startups to Google, and he’s an angel investor in other technology companies.Speaking of salaries, don’t forget to take into account paying yourself as the business owner, says Candace Klein, chief strategy officer for Dealstruck, an online lending platform.Lenders expect entrepreneurs to include their own salaries in the profit and loss statements they present as part of their loan application packages, or else the documents won’t be seen as realistic financial assessments.Better yet, you learn to get to revenue-neutral or revenue-positive faster. You get to channel your talents and ingenuity to create an organization you believe in. It requires time, dedication and – you guessed it – money.

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