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Calculate Your Business Startup Costs Before You Launch

One of the most important things that you need to do when planning to start a new business is to Calculate your business startup costs. Read this article to know all about startup costs and their Calculation.

A start-up is a new venture that has been started by entrepreneurs. Startups are usually small and often have limited resources, but they can be very successful if the right strategies are used. A start-up begins with an idea for a new product or service that needs to be developed into something that solves a particular need. The entrepreneur will then hire people who can help make this idea come true. These people may include engineers, designers, marketers, and salespeople as well as financial experts in order to get their business off the ground. If you are planning to launch a startup it is important that you Calculate your business startup costs. This article will help you understand the different types of costs included and tell you how you can manage them.

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Planning a Start-up 

A start-up is a new business, which has not yet been in existence for more than three years. A company that has been in existence for less than three years is known as a ‘start-up’ or ‘new business.

Planning a start-up is the process of developing a business concept, identifying and selecting target markets, designing an organisational structure, and setting goals. Planning also involves evaluating alternatives to achieve the desired results. The planning stage is often overlooked by entrepreneurs because they are too busy with their day-to-day operations or simply do not believe that it is necessary. However, if you want to be successful in your venture you must plan for success from the very beginning!

Business Setup Calculations

Costs included in a Start-up 

Costs are the expenses that you incur in starting a business. They can be broadly classified into two categories: fixed and variable. Fixed costs include things like rent, electricity bills, telephone bills, etc. Variable costs on the other hand include everything else that is not covered by fixed costs such as office supplies, advertising, etc.

The cost of setting up a business varies from one person to another depending upon their personal preferences and requirements for running their own business. The type of start-up depends on what kind of work you want to do; whether it’s an online or offline store etc. 

The costs of starting a business can be narrowed down into three main categories. 

  • Brick-and-mortar costs

Brick-and-mortar costs are the expenses that you have to incur in order to set up your business. These include things like rent, electricity bills, salaries of employees, and so on. Brick-and-mortar costs can be quite high if you start a new business from scratch or if you expand an existing one.

Brick-and-mortar costs are usually less if the business is supposed to be run online. But if you plan to run the business online as well as offline the brick and mortar costs will be more.

  • Service Costs

Service costs are the costs of maintaining and running a business. The cost of providing services can include – rent, wages, travel, utilities, etc.

Service costs largely depend on the area where you live or run a business from. The rents and electricity bills will depend on the location.

  • Online Costs

Online costs include delivery expenses and digital marketing expenses etc. If you plan to run the business online or want to expand it online these costs will be higher initially.

However online costs are usually less than traditional marketing methods and have a very good return on investment.

Want to calculate the total cost of a startup you can use the business setup calculator provided by Vakilsearch. You can enter the details about your startup such as the name of your startup, the business email, the city you are located in, etc, and calculate the business startup costs.

Calculate your business startup costs 

To calculate your business setup costs you can use the business setup calculator provided by Vakilsearch. Here is a step-by-step guide on how you can use online calculators to Calculate your business startup costs.

  • Go to the online calculator website.  
  • Provide the details required. The details will include personal information such as contact number, name, and name of a startup. 
  • After providing this information,  you can move on to the next step in which you have to provide business-related information.  
  • The business-related information includes the industry this startup is a part of, and the activities of the business startup. 
  • After providing the necessary information you have to give information about your business expenditures. 
  • One-time expenses such as security deposit, cost of infrastructure, etc need to be added. 
  • You also have to inform us about the monthly costs such as electricity bills, GST, rent, etc. 
  • The final step will include information about the revenue generated per month. This will include sales estimation. This will help you identify the time limit in which the business will start earning profits. 
  • After you provide all the information, the calculator will tell you about your startup costs. 

This business setup calculator by Vakilsearch will help you assess your business costs so that you can manage your budget accordingly.


Starting a business is the first step towards becoming self-employed and earning money. It also gives you a chance to learn about your strengths and weaknesses, which will help in future ventures.

To calculate the business startup costs you can use online business setupcalculators. One such calculator is available on the website of Vakilsearch. You have to provide basic information about yourself and your business along with different types of costs included and just calculating will help you estimate the amount that will be spent on starting a business. 

This will help you manage your budgets better. Vakilsearch also as a legal team of consultants will help you with all the legal procedures and solve your queries related to it.

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