When you start setting up your own company and talk to people who did it before, they talk to you about experiences, mistakes made, successes... But hardly anyone talks to you about How much money do you need to get started and, above all, what amount of expenses you will have during the process and while your business is alive.

When creating a company, it is absolutely necessary to know how much money you need and what monthly expenses you will have in order to, in this way, study the possibilities you have to finance your project.

First of all, peace of mind! Because if you are thinking of setting up your own company, it is normal for you to have doubts and in this article we are going to try to answer them all.

Financial requirements for founding a company

This is a really good question that everyone asks themselves at the beginning. But from now on I want you to know that to get the right amount of money needed to start a business, especially in the first months of life, it's practically impossible.

There are many entrepreneurs, and all of them have one thing in common: almost none of them have been correct in their forecasts. But there are some tips that can help you calculate your expenses and that we are going to explain to you in this article. So... Keep reading!

What expenses will you have when starting your startup or business?

This answer will give you what is known as: investment plan.

Investment Plan

Thanks to him, you can know exactly how much money you need to start your business, as well as where to get investment.

The investment plan serves to correctly define what investments and expenses the company will make for its proper functioning. To draw up this plan, it is necessary to carrycarry out a study that will allow you to know the investment that will entail starting the company's activity.

What should be included in this plan?

• The opening expenses of opening the business
• The expenses of setting up the company
• The necessary machinery
• Staff salaries
• As well as any other type of expense that may occur at the start of your business.

To give you an idea and in an indicative and reliable way:

• Los initial expenses They usually assume the 48% of the costs. What do they refer to? To the expenses that your project needs to start earning money.
• Los monthly expenses Regular correspond to the 12%. These are what are known as fixed expenses and will be charged every month, for example: rent, payments for programs that your company needs, payment for employees... Here are also the costs of supplies, which can vary every month and break your schemes, unless you stabilize them with Polaroo.
• Los supplier expenses Suppose the 14% of the total and are related to products or services that come from third parties.
• Los one-off monthly expenses They are around the 16% of the costs, they are variable and, although it depends on the month, they are independent expenses that you have to control.
• Los variable expenses In time they are around 10% Of the total, you always have them, but they are not always the same amount. The most important thing is that you are prepared for them to go up or down at any time.

Funding plan

After that, it's time to evaluate What are the alternatives for obtaining the necessary money and setting up the company, what is known as funding plan. It will allow you to obtain the best economic resources to start the production and sales of your products or services.

What are the options? Bank credit, family benefits, government grants...

Important! The more detailed the dissection of initial expenditure and potential income, the more chances you have of creating a realistic business plan that will allow you to present your project seamlessly and be able to access an adequate line of funding.

How much money do I need to start my own business?

After reading this article, you probably know the answer: Depends on the business.

But since we know you need a clearer answer, we want to give it to you!

And the thing is that According to the Global Entrepreneurship Monitor report, the average capital required by entrepreneurs for their projects is €55,683.

If we consider those who comply with that measure:

• 50% of projects need an investment of up to €17,810
• 20% need capital of more than €50,000
• And 10% need capital of more than €100,000

What factors cause these quantities to vary? The requirements of your business, if it will be an absolutely digital company, or you will need a physical business to reform...

The important thing is that you know what expenses there may be, you have control and you use services or technologies that allow you to control and stabilize your expenses such as Qonto, Polaroo, etc.