Corporate financing executive Edward Espinal is the founder and CEO of Cash Flow Partners, a New Jersey-based lending company. Edward Espinal helps entrepreneurs find the money they need to start new businesses.
According to data from the Small Business Administration, the average cost of starting a home-based franchise ranges from $2,000 to $5,000. However, these averages are not consistent, and many companies require more capital depending on location, their marketing plan, and the industry.
Usually, the total cost of starting a business consists of capital expenditures and expenses. Capital expenditures are one-time costs that usually may be written off through depreciation over time. Property, vehicles, and inventory are examples of capital expenditures.
Expenses are all the costs of operations in the start-up phase, including rent, travel, office supplies, state incorporation fees, and legal fees. Ideally, these costs are kept to a minimum and extra funds are left to cover unexpected costs.
