When starting a Business, you have to first create a budget. Questions that should be addressed are the following:
Product Costs:
What products are you selling?
What material will be needed to create the product or how much will it cost to purchase the product?
If you are creating the product, what type of man power and how many employees will be need to create the product?
How many hours will be needed to create the product?
Do the employees needs to be part time or full time?
Service Costs:
What services are you providing?
What type of job position is required to provide these services (job description) and how many?
What are their salaries and will they be part time and fulltime?
What days and times are they available?
How many people can be served by each employee and how many hours will it consist of?
What activities are created to provide the service?
Will you be responsible for creating the activities or will the employees be responsible for creating the activities.
How long does is each activity and what will be accomplished once the activity is completed?
If the goal is not accomplished what back up plan has been created to further assist those that needs it.
Administrative Costs:
What positions are needed to run the administrative part of the business? Director, Secretary, Treasurer, marketing etc.
Do they need to be full time or part time?
What specific job duties will they be responsible for?
How much salary are they expecting?
What days and times are they available?
Overhead Costs:
How much is needed to cover the rent and utilities?
How much is needed to cover the supplies needed to provide the services that is offered.
How much will it cost for the marketing material?
Once these questions are answered, you can then take that information and come up with a price for each service or product so you know the realistic cost per product or service offered. You need to create a realistic budget so you know how much funding you will need to start it and maintain it. Having a budget will breakdown the amount of products or services you can provide for x amount of people.
If you would like to learn more about this topic, please feel free to take our “ Profit or Loss/Human Resources & Accounting ” Workshop.