Start Up Costs
START UP COSTS, ETC.
Start-Up Costs
With the start-up of any new company, it is very important to get all finances, start-up costs and maintenance costs together before actual start-up. Ample amount of research needs to be conducted in order to be sure that more or less a surplus of funds is obtained instead of not enough. Costs must be carefully researched to justify the amount of money actually being spent on the start-up of a new company. Costs needed to start up my Netflix type service would be, advertising for the grand opening, design of a basic website, building down payments, business licenses and/or permits, computer hardware and software, internet deposit, security deposit, legal fees, machinery, office furniture, insurance, public utilities deposit, security system installation, starting inventory, telephone service, tools and employee wages. These start-up costs alone total to $811,900, which does not include employee wages, are they are subjective at this time. However, to ensure enough money is in the bank for the worst case scenario, it’s good to have at least $1 Million dollars in start-up capital, which is much more than I anticipated for this type of business. Costs are detailed in the accompanied Excel spreadsheet.
Pricing Model The pricing model for my business will be a very simple one with two main focal points. The first point is that my service will be offered at a fixed cost for every single customer that signs up. I will offer my services for a fixed cost of $25.00 per month, including all taxes are surcharges. Everyone will receive the same start-up pricing. Secondly, the risk free 30 day trial I am offering to customers will attract customers since they can try the service free for a whole month before deciding to keep the service or not.
Funding Resources When it comes to starting up my business, especially one requiring as much funding as this one to start-up, I will need to do very in depth extensive research to
Start-Up Costs
With the start-up of any new company, it is very important to get all finances, start-up costs and maintenance costs together before actual start-up. Ample amount of research needs to be conducted in order to be sure that more or less a surplus of funds is obtained instead of not enough. Costs must be carefully researched to justify the amount of money actually being spent on the start-up of a new company. Costs needed to start up my Netflix type service would be, advertising for the grand opening, design of a basic website, building down payments, business licenses and/or permits, computer hardware and software, internet deposit, security deposit, legal fees, machinery, office furniture, insurance, public utilities deposit, security system installation, starting inventory, telephone service, tools and employee wages. These start-up costs alone total to $811,900, which does not include employee wages, are they are subjective at this time. However, to ensure enough money is in the bank for the worst case scenario, it’s good to have at least $1 Million dollars in start-up capital, which is much more than I anticipated for this type of business. Costs are detailed in the accompanied Excel spreadsheet.
Pricing Model The pricing model for my business will be a very simple one with two main focal points. The first point is that my service will be offered at a fixed cost for every single customer that signs up. I will offer my services for a fixed cost of $25.00 per month, including all taxes are surcharges. Everyone will receive the same start-up pricing. Secondly, the risk free 30 day trial I am offering to customers will attract customers since they can try the service free for a whole month before deciding to keep the service or not.
Funding Resources When it comes to starting up my business, especially one requiring as much funding as this one to start-up, I will need to do very in depth extensive research to
References: Richards, Daniel, How to Do a Breakeven Analysis. About.com Entrepreneurs. Retrieved: October 25th, 2011 from: http://entrepreneurs.about.com/od/businessplan/a/breakeven.htm Roggio, Armando. (March 20th, 2009) Ecommerce Know-How: Using a Variable Pricing Model. Practical Ecommerce, Insights for Online Merchants. Retrieved: October 25th, 2011, from http://www.practicalecommerce.com/articles/1020-Ecommerce-Know-How-Using-a-Variable-Pricing-Model Vertex4u. The Guide to Excel in Everything. Business Start up Costs Template. Retrieved from and downloaded on: October 25th, 2011 from: http://www.vertex42.com/ExcelTemplates/business-startup-costs.html