Every business is different and has its own specific cash needs at different stages of development; therefore there is no generic method for estimating your startup costs. Some businesses can be started on a shoestring budget, while others may require considerable investment in inventory or equipment. It is vital to know whether you will have enough money to launch your business venture.

To determine your startup costs, you must identify all the expenses your business will incur during its startup phase. Some of these expenses will be one-time costs, such as the fee for incorporating your business and the price of a sign for your building. Some expenses will be ongoing, such as the cost of utilities, inventory, insurance, etc.

While identifying these costs, decide whether they are essential or optional. A realistic startup budget should only include those elements that are necessary to start the business. These essential expenses can then be divided into two separate categories: fixed (overhead) expenses and variable (related to business sales) expenses. Fixed expenses will include figures like the monthly rent, utilities, and administrative and insurance costs. Variable expenses will include inventory, shipping and packaging costs, sales commissions, and other costs associated with the direct sale of a product or service.

The most effective way to calculate your startup costs is to use a worksheet that lists the various categories of costs (both one-time and ongoing) that you will need to estimate prior to starting your business. The following tools will assist you in performing that task:

• PaloAlto Startup Cost Estimator
• Business Know-How Startup Calculator

2. The same applies to hours of work – plan to work a set number of hours each day and stick to your plan. Don’t be tempted to do jobs around the house when you should be working.

3. Keep complete and thorough records of everything you do, preferably in a page-a-day diary. Without a boss looking over your shoulder it’s easy to let discipline slip.

4. Perform regular backups of your entire system. If you don’t then all of your emails, internet favorites, correspondence, articles, logon information, web templates, and all your software are at risk.

5. Keep accurate accounts – keep a complete record of what you are spending and where. It can be very easy to lose track of your expenditure and it is easy to overlook monthly subscriptions. You will need all this information anyway for tax purposes.

6. Stay focused – set out you plan of what you are trying to achieve, using realistic timescales, then stick to it. Don’t be blown off course by other business ideas.

7. However-it is important to be aware of new ideas and new thinking. Set aside a planned period once or twice a week to consider and research new ideas and opportunities.

8. Take a break from gazing into your screen periodically, make a coffee or something. At lunchtime get out of the house for half an hour to get some fresh air and refresh yourself for the afternoon, the worst time for losing momentum.

9. Don’t sit on the sofa working in your pyjamas. Get properly dressed for business and sit at a desk. Your whole mind set will be more professional if you are properly attired.

10. Strive for efficiency – don’t repeat tasks unnecessarily, keep a document containing things you need to type regularly such as your address. The simply copy & paste when you need it. And if you need to brush up on your typing skills then do so, you’ll probably be doing a lot of typing so time spent achieving good speed and accuracy will pay off in the long run.