Frequently Asked Questions
What expenses are included in startup costs?+
Startup costs include registration fees (company registration, GST registration, Professional Tax), equipment and computer systems, office setup, initial marketing and branding, and working capital for the first few months of operations. These are typically one-time or initial setup expenses.
How much working capital should I plan for?+
Working capital should typically cover 3-6 months of operating expenses. This ensures you have cash flow to run operations while waiting for revenue to come in. It depends on your business model—service businesses need less working capital than retail or manufacturing businesses.
Can I reduce my startup costs?+
Yes! Consider: starting from home instead of renting an office, purchasing refurbished equipment, using open-source software, partnering with others to share costs, and starting with fewer employees. Many successful startups begin lean and scale gradually as revenue grows.