Bre Breaks It Down: How To Realistically Estimate Your Startup Costs

So, what’s it going to cost you to start you business? Surprisingly, a lot of almost entrepreneurs I meet can’t break this down.

I know you can’t predict your costs to 100% accuracy, but you can get pretty close, and you should put the work in to get there. I’m going to break down how to realistically estimate your startup costs.

What Are Startup Costs?

Startup costs are all the money you need to spend before you can start making money. That old adage you have to spend money to make money is true! Startup costs include your expenses and your capital expenditures, or assets.


Your expenses are anything you have to lay out before you start generating revenue. This can include things such as market research, logo design, rent, payroll, and advertising. Some expenses are tax deductible.

Capital Expenditures

Capital expenditures, or assets, are things you need to purchase to get your business of the ground. This can include things such as property, inventory, vehicles, equipment, and office furniture. Capital expenditures are not typically tax deductible, but can be written off via depreciation.

What Do You Have In The Bank? 

Next, take a look at what you have in the bank, because this is the money you’re going to need to use to get your business off the ground. Consider what you’re going to need to lay out before your business starts generating income.

Make Your Calculations

Your final step is to make your calculations. A little research goes a long way in helping to estimate what you should spend, and here are some of the costs to consider in your calculations, below. Remember, it’s always better to overestimate what you need than underestimate!

One Time Costs

Furniture for your office: $

Computer equipment (hardware and software): $

Installation, setup, and consulting fees: $

Stationary and business cards: $

Remodeling or decorating: $

Fixtures, equipment and installation: $

Inventory, tools and raw materials: $

Professional and legal fees: $

Business permits and licenses: $

Advertising: $

Signs: $

Rent: $

Contingency costs: $

Monthly Expenses

Your salary: $

Salaries for any employees: $

Rent: $

Advertising: $

Shipping costs: $

Deliver fees: $

Supplies: $

Phone: $

Utilities (gas, electricity, water): $

Internet: $

Website maintenance and hosting: $

Insurance (business, vehicle, and health): $

Professional and legal fees: $

Contingency costs: $

Bre is a female millennial go getter residing in New York. One part entrepreneur, one part geek, she obtained her degree in Textile/Surface Design from The Fashion Institute of Technology.

She has held some exciting roles in both fashion as a designer working for brands like Victoria’s Secret and Henri Bendel, as well as in ad tech working for publishers like Ziff Davis.

Today she operates her own luxury label Bre Avery, and is also the Chief Chick at Chipchick.com which reaches millions of women each month.

Bre is passionate about keeping women informed of the latest technology trends and products to improve their lifestyle and believes in providing real, useful information and advice to her readers.