Let’s explore a list of 15 startup costs every founder should know and track. Then we will dive into a few examples of how to add these in Finmark.

General & Administrative Startup Costs

1. Office Space

2. Equipment & Supplies

3. Legal Fees
4. Finances

5. IT
6. Human Resources

7. Insurance

Sales & Marketing Startup Costs

8. Your Sales Team

9. Inbound Marketing

10. Advertising

11. Agencies

12. Customer Success

Research & Development Startup Costs

13. Software Engineering

14. Quality Assurance

15. Design

Tips to Manage Startup Costs and How to Add Them to Finmark:

Determine your Fixed Costs:

Most startups will have fixed costs such as;

  • Office Space

  • Equipment & Supplies

  • Utilities

  • Insurance

It's good to understand how much you should budget for each of these fixed costs.

For example, a fixed expense could be your Office Space budget. Here is how you can add your Office Space budget in Finmark:

For this example, we entered the following details:

  • Expense Department: Administration

  • Expense Name: Office Space

  • Recurring

  • Expense Type: Amount

  • Amount: ~$3,000.00

  • Start Date: 10/01/2021 (MM/DD/YYYY)

  • Frequency: Monthly

Now repeat this process to add all of your forecasted expenses.

Budget Fixed Onboarding Expenses For New Employees:

Whether you’re hiring for a new role or replacing someone who left, budget at least $4,000-$5,000 for every new employee to cover “hidden” expenses like:

  • Background checks

  • New equipment (computer, desk, swag, etc.)

  • Any new software/tools they’ll need

To do this in Finmark, we will start by creating the variable for onboarding costs in the fX Variables section. See Below:

For this, we created a custom variable called "Onboarding Expense Budget for new employees" and set the budget to be $4000.

Then, we went back to our expenses section and manually added a new expense. We started by entering the following details:

  • Expense Department: Administration

  • Expense Name: Onboarding Expenses for New Employees

  • Recurring or One-Time: Recurring

  • Expense Type: Custom Formula

  • Start Date: mm/dd/yyyy

  • Frequency: Monthly

From here, we were able to use our Custom Variable and System Generated Variable to build a formula to forecast our budget for onboarding new employees.

This formula will take the new headcount each month and multiple the new headcount by the Onboarding Expense Budget set.

Fx: Headcount.New*Custom.OnboardingExpenseBudget

Did this answer your question?