Miscellaneous Startup Costs

There are all sorts of startup costs that don't fit neatly into any category but that still need to be considered if you're to get an accurate picture of how much it will cost you to get your business off the ground. Here's a look at them:

• Deposits — Include in this all amounts required by the various utilities and telephone companies. The utilities will be able to provide you with an estimate based on the type of business. Some estimates could be significant, depending on your business, e.g., if you plan to open a telemarketing company, expect to have a high telephone usage deposit.
• Licenses and permits — This amount will include all fees charged by local, state, and federal agencies. If your new business is in a highly regulated industry, expect these charges to be somewhat high. For example, an elder-care facility or a company that handles toxic substances will have higher fees than a clothing store.
• Miscellaneous and other — This is the catchall for the cash needs that will not fit in other categories. In some instances, your business may have several items that are not included in the rest of the list.
• Unanticipated expenses — A good rule of thumb is to compute the unanticipated expenses as 10 percent of the total estimated cost of your startup expenses.