How much money do I need to start a business?


Estimating costs and income is key for any new business. These numbers will help you decide if your business is viable or not.

The amount of money it takes to start — and to stay in business — will vary greatly from business to business. This page sets out common steps to work it out.

It’s a good idea to add 20-30% for costs you haven’t thought of — unforeseen bills or price rises can quickly add up.

Can you afford it?

Assessing whether you can afford to start a business takes careful consideration. The first thing you should do is analyse your own expenses.

Go through your personal spending with a fine-tooth comb. Add up your:

  • mortgage or rent,
  • vehicle expenses,
  • food,
  • insurance,
  • rates,
  • school fees
  • other optional spending (outings)

Add up your personal expenses to find out how much income you personally will need to generate each week/month just to “stay alive”.

Running a business can be incredibly fulfilling, but the early days in particular can be a financial squeeze.

Is your business idea viable?

Just keep in mind that starting a business generally costs more and takes longer than you think.

Tally up running costs

Once you’ve gotten to grips with the impact on your personal finances, it’s time to focus on how much it will cost to get your business up and running.

One-off costs to start up

These include:

  • purchase of tools/equipment/vehicle
  • initial compliance costs
  • branding/marketing
  • a website and domain name

Fixed costs

These are bills you need to pay on an ongoing basis, i.e. each months:

  • insurance
  • electricity and internet
  • rent or mortgage payments
  • wages/salaries.

Variable costs

These include:

  • materials
  • consumables
  • stock orders

Try break even calculator

Use this tool to analyse your figures and find out how much you need to sell to break even and meet your overheads.

Our office has welcomed a number of start-up businesses and we encourage you to give us a call on 07-575-3790 or send us an email to so we assist you with the initial set up.