P4 Describe financial aspects that affect the start-up of your business.
Start-up costs
Start-up costs are the expenses incurred during the process of creating a new business. All businesses are different, and can require different types of start-up costs. In order for a business to survive, start-up costs need to be kept as low as possible. Business owner has to make list of start-up costs. Using a list of start-up costs a business owner would then create a personal survival budget.
For my business idea that is in school café I should still keep start-up costs low, but as far as it is in school I don’t have to worry about the equipment for my business, because they already have kitchen to work in and café to sell my products. However I still have to pay the rent and I need resources to start with – stock.
Personal survival budget
In order for your business to survive, you need to have enough money to cover all your start-up costs, the costs of running the business and also for you to live on. This section looks at how to determine your personal survival budget.
I think my business would not affect my personal survival budget too much, because I don’t have to buy all the equipment like ovens, fridges, etc. As far as I have to worry mostly about the stock for my business.
Cost of premises
Choosing appropriate premises is crucial to the success of a business. Business owners then have to decide whether they want to rent or buy premises. For place they have to pay rates as well as insurance. When they are choosing the best place for business they have to make sure that people are actually going to that place. For successful business they need to locate it where it is easy to get to, where the public transport goes, as well as there should be parking for customers with their own cars. However they have to know their competitors.
I think in school the rent is