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Revision BookletUnit 2. Finance for Business What costs must be considered when setting up a business and how does a business make profit?1Learning Aim A: Understand the costs involved in business
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Make a list of all expenses related to starting the business such as equipment, supplies, rent, marketing costs, etc.
02
Research the estimated costs for each item on the list to get an accurate idea of how much to budget for
03
Add up all the estimated costs to get a total startup cost
04
Consider adding a contingency buffer of 10-20% to account for unexpected expenses

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Startup costs refer to the expenses incurred during the process of setting up a new business. The amount varies depending on the type of business.
Individuals or companies starting a new business are required to file their startup costs.
Startup costs can be filled out by keeping track of all expenses related to starting the business and organizing them into categories such as equipment, marketing, and legal fees.
The purpose of startup costs is to determine the initial investment needed to get the business up and running.
Information such as the amount spent on equipment, marketing, legal fees, and other expenses related to starting the business must be reported on startup costs.
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