Ryan Gair, Co-Founder and CEO, Rate Money

“In my experience, there are five costs to look out for. There are the obvious costs to expect such as your start-up capital and your wage bill if you decide to employ staff, as well as their super. You will also need to account for the GST on the business you’re bringing in as well as different insurances you need depending on the industry you’re entering. Next is location, whilst you may be able to start from your garage, some businesses require a retail space, some require an office space.

“Most commercial spaces are not only expensive but 9 times out of 10 require a bank guarantee and that’s before you’ve turned your space into an environment people want to work in. If you’re moving into retail you’ll need merchant terminals, software and hardware, and then further down the line you are going to want a CRM to manage and market to your newfound clientele.

“As for accounting, there are two options – DIY (e.g., Xero/MYOB) or an accountant. One will cost more than the other, but one will also save you more than the other in the long run. Lastly, you have to create your brand, you’re just starting up so that can be as simple as some signage and a website but then you have to work out how you’re going to drive people to your newly created brand.”

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