Nationwide business applications were above 430,000 in November according to the U.S. Census Bureau, marking the 11the consecutive month of numbers above December 2020. Approximately a third of businesses fail in the first two years, which means planning ahead is imperative to gain every advantage possible.

To keep from being surprised by unexpected expenses, engaging experts can keep these industry-specific costs at the forefront of the planning process. From state and local permitting and licensing costs to stay compliant to the more obviously costs of equipment, rent, utilities and staffing, there are many factors that play into early-stage success.

Here are some costs we consider when consulting with new clients:

• Market research: Set-up costs, operating costs, product/service pricing, and how long it will take to make a profit must be determined prior to launch.

• Equipment: Back to technology, some businesses need barely more than a laptop and great product idea. We put together the right mix of tech and apps and work closely with reporting and permissions. However, other types of industries require additions like expensive equipment and a physical office or warehousing; doing proper research will let you know how much to save initially.

• Registrations and incorporations: If you are incorporating your company, paying fees will most likely vary from state to state, and it also depends if your registration is federal or state and operating in more than one state.

• Inventory: Industries like production, wholesaling, and retail have to make budgeting decisions regarding inventory. Starting your business and running out of stock or overbuying inventory can be equally detrimental in the initial stages of going to market.

• Employee’s salaries and consulting: Whether to business is generating profit or not, employees have to be paid, including yourself. There are ways to offset full-time employee salaries by using outsourcing for functions like accounting and payroll. This is often much more cost-efficient that hiring a full-time CFO and staffing each department. Some processes are simply better when handled by professionals.

Not only do experts need to be a part of the original planning process, we help clients accurately estimate how much capital is needed, if outside funding is an option, and even if your idea is feasible in the current climate. Bottom line, the strategy behind starting your business dictates success or failure. Knowing how much money is coming in and going out through data-backed analysis provides accountability when spending.