You should ideally enjoy business but the best aim of any business is to make a profit. No profit; no business.

The way to make money is to charge prices which not only cover your costs but also make you a profit.

You can only charge a price customers are willing to pay. But for now, let’s focus on your business costs. Your costs will include:

• Staff costs – including Employers PRSI and any other benefits
• Materials – your costs to provide your product or service
• Premises – are you renting/leasing
• Electricity, heating, telephone, internet access and running costs
• Transport costs – car/van plus running costs – tax, fuel, insurance, loan repayments
• Insurance – public and employers liability insurance
• Other – marketing, advertising, advisory services, licencing etc

Nearly everyone starting up in business underestimates costs and overestimates sales – so you need to think about this. What would your business look like if you only make half of your estimated sales and all of your costs are correct? Could you survive this? Have you enough saved? Can you continue to work while you grow your business?

It’s not unusual for a new business not to make money in its first year. It can take longer than you think for customers to buy from you. It can take time for your name to get established and get people talking about you. But you cannot go on making losses forever; the business must make money for you to survive. You need to know your business will make you enough money to make a profit. You need to know your business will make enough money for you to live on. You need to know you can make enough money to put back into the business so it can grow and survive.

Once you’ve decided that you are going to go ahead – you need to pull together a detailed business plan. This will help get your idea off the ground and keep you on track as you get up and running.

Do you need to speak to an expert about your financial prospects? Call us today on 091-509090 or email info@leo.galwaycoco.ie to arrange a FREE advice session with one of our business advisors.