How big the establishing costs get depends on what kind of company you want to start.
If you want to start a consultancy firm working in human resource development you might only need a telephone, a computer and education/skills in human resources. You probably have the education/skills and if you start the business from home; the only expenses you need to start is a PC and a telephone. The start will then be rather inexpensive.
On the other hand if you want to start a production making electronic devices your establishing budget will be high. Before you can start selling your electronic devices you need a production building, machinery, packing facilities, skilled staff, a stock of electric components, office equipment and...this may cost millions.
Below you find some of the most usual expenses when starting a business. In your business plan you delete the ones you do not encounter in your new company.
Purchase before start
All the costs you get in the establishing budget will at a later stage be
transferred to your operating budget. Bigger investments will be transferred to
the company´s balance sheet.
The establishing budget is a snapshot of the cost you get before you can start operating your company.
He knows not his own strength that hath not met adversity.
- Ben Jonson, born 1573