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Business expenses
Hi, I’m about to start a brand for the first time. Which are the largest expense items I have to count on before launch?
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3 Replies
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Hi Ash,
The major expense post before launch is product development. You will have to spend money on design, patterns, material, and prototype making. Depending on how you source material and where you make your prototypes, you may have to include some travel costs as well.Read this article for more information about where to spend and where to bootstrap: https://memberzone.apparelentrepreneurship.com/tips-for-bootstrapping-your-startup
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Question – just joined and went straight to the budget template. Would you put this membership as an administrative expense line item for the business? Am I tracking every dollar I spend here? I was working on something similar but didn’t have the categories, so just want to be clear. I have expenses like trade shows, hosting for my website, domain names, even other educational expenses as it relates to learning more.
Thanks!
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Yes, I would put the membership as an administrative cost. This template is best used for projections and planning. To track the costs I would use your book keeping software or document. There you will continuously track the exact expenses. After a period in business ( a month, 6 months, or a year) you can pull a report from the book keeping software and check it against your budget. When you have those ”real” numbers, you can adjust the budget for the upcoming period.
Trade shows, events, website, and domain you can put under marketing and sales, since that’s what it typically is about. If you are running a DTC brand only, and have a lot of costs associated with IT, I suggest you create a new section in budget template named ”IT”.//Klas