Thinking of becoming an entrepreneur? What is the cost to start a business?

Published on: 17 October 2018 Last Updated on: 02 March 2020

If you’re thinking of becoming an entrepreneur, you probably already have the motivation and guts to do so, but do you have the right knowledge and the right amount of capital?

Many Latinos have the drive and initiative to become entrepreneurs. This comes with many perks including consistency, hard work and an innate ability to be resilient and not stop at the potential of obstacles. But entrepreneurs often lack the proper information about how much it costs to start a business. For example, how many funds will I need upfront? How much do I have to invest from my own savings and how much will come to from a bank loan? How many employees will I have to pay? The cost always varies depending on the field. Usually, the industries with the largest profits are also those that require more expenses and ongoing investments: land, facilities, infrastructure, and major manufacturing equipment. Unless you’re starting a business solo as a freelancer or business consultant, there are a plethora of costs involved with starting a business.

Let’s start with a concrete example. If you are thinking of launching your own Mexican restaurant, what initial expenses should you consider? Well, first off you have to pay yourself. What will your salary look like? Then, estimate your business cost by creating a business plan. How many employees will you employ and at what hourly rate? What is the hourly rate for your state? How much do you have to invest in to make the restaurant appealing to customers including equipment and supply costs? All of these factors should be a top consideration in your mind and in your business plan. Having your own business means having to take care of your employees as well.

You will also have to consider administrative charges such as the fees you need to pay your state for being a business entity. Many companies opt to become a corporation, a process that can cost roughly around $100 – $250 in fees depending on the state. Franchise tax fees can cost an additional $800 to $1,000, with government filing fees adding an extra $50 to $100 to your expenses.

Plus, you cannot forget rent! In pricey areas, you can be coughing up around $50-$60 per square foot. That’s just an example, but the price varies depending on location and state. And, finally, insurance. Insurance is a pivotal part of business as you want to be sure you’re operating from a place in which you’re protected from liabilities. In an atmosphere where so many diners come and go day-by-day, insurance is a must-have.

Is your case similar to the one mentioned above? Do you dream of setting up your own business in a different field? Do you want to work for yourself? Whether you’re in the hospitality industry, the freelance industry, or legal, there are a lot of costs you should become aware of before you start. These are some of the questions you should think about and answer before starting your business.

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Why Your Business Should Care About Social Responsibility

You’ve got enough to worry about trying to make your business a success without having to worry about saving the world as well, right? Wrong. Research shows that incorporating socially responsible policies into your business model can help your business to thrive. From inspiring customer loyalty to attracting investment, social responsibility has huge business benefits. Plus, you can’t beat that warm, fuzzy feeling you get from doing your bit to help the world. In our modern digital society - where consumers have access to both company records and the fast-moving social media grapevine – social responsibility matters more than ever before. Not only do many consumers prefer to buy from ethical companies, they often insist on it. And this demand is going nowhere. Brands need to embrace social responsibility and put it at the heart of their business to have any chance of earning the kind of reputation today’s consumers want. Read on to find out exactly why your business should care about social responsibility. What are the benefits? Making social responsibility a key part of your corporate citizenship policy can have far-reaching effects for your business. Commit to better environmental practices and you’re likely to cut costs as you reduce your waste and save on energy bills. Devote time to helping a charity and you’ll create no end of positive press and PR opportunities. The list goes on and on. Other top benefits include: Better marketing and brand recognition More credibility and customer loyalty More satisfied employees (and that makes for increased productivity) Facilitation of innovation and development through collaboration Increased sales and a boost in profits More opportunities to secure external investment Easier regulatory relationships with local authorities and the law A great reputation and business longevity The chance to leave a meaningful legacy and inspire the next generation How can my business be more socially responsibility? When creating your corporate social responsibility policy, you need to start by identifying the values that are important to your business. Think about your purpose and what you believe in. You should also think about what means the most to your customers. Your policy should cover a range of issues from the environment to charitable donations and, crucially, include an implementation and reporting plan. You could have the best policy in the world but if you don’t carry it out, it’s meaningless. You’ll find loads of useful information on the GRI website. They empower businesses around the world to create socially responsible and sustainable business models. Key policy areas to consider include: Charitable giving Social responsibility often involves working to support a charity or worthy cause. Ideally, you should choose a cause that aligns well with your business and that your stakeholders and employees will be enthusiastic about. Take shoe brand, TOMS. Their One for One campaign helps provide shoes to people in need. For every pair of shoes purchased, they donate a pair – over 75 million at the last count. A great example of a charitable cause that has meaningful synergy with a brand. Collaborative brand partnerships Putting competition aside and partnering up with another brand to work collaboratively can have a huge impact. By sharing resources and expertise, partnered brands can achieve far more than they would alone. And all sides stand to gain when the collaboration has charitable aims. The pre-competitive partnership between luxury online retailer Yoox and fashion brand We Are Handsome is a prime example. Their Yoox Loves the Reef project sees them team up to produce and sell an exclusive line of swimwear and activewear to support the conservation work of the Great Barrier Reef Foundation. Carbon emissions In the face of climate change, more and more businesses are looking to play their part and reduce their carbon footprint. Brands like L’Oréal have even committed to going fully carbon neutral and the hope for the future is that other businesses will follow suit. Begin by identifying your carbon emissions and then look at ways of reducing them. This could include boosting the energy efficiency of your operations, reducing travel miles in your supply chain, investing in sustainable packaging, and offsetting unavoidable emissions. A wide range of brands from IKEA to Unilever are collaborating to fight climate change in the We Mean Business coalition. Human rights Socially responsible businesses should, at the very least, make sure that no part of their supply chain uses unethical labor practices, wherever that might be in the world. On top of that, the most socially conscious brands take active steps to improve the lives of their workers. Sourcing Fair Trade goods, investing in sustainable solutions for local communities, and treating workers fairly and with respect are of vital importance to consumers nowadays. And they’re willing to pay more to shop from a brand with great human rights credentials. M&S are one brand leading the way here, with a range of projects designed to ensure they have a positive impact on human rights and wellbeing. The M&S Global Community Programme aims to help one million people from their supply chain communities build livelihoods and conserve the environment over the next seven years. Read More : Influencer Marketing Tool To Move From Local To Global Market Top 4 Reasons To Outsource White Label PPC For Your Business How To Choose Best VOIP For Small Business 5 Marketing Tips To Help Grow Your Business On Instagram Investing In Machinery For A More Productive Business

Why Automation of The Procure-to-Pay Cycle Is Critical?

Organizations across the world are facing the brunt of rising commodity prices and increasing procurement costs. Executives are hard-pressed to make a tangible difference to supply chain profits. But cost-cutting is adversely affecting investment decisions and chances of expansion across the board. Read further to know the top Reasons Why the Automation of the Procure-to-Pay Cycle Is Critical. Technology enables companies to look offshore for cheaper resources and raw materials. Procurement has become a more important process than it had been before and geographical boundaries to availability are diminishing. The procure-to-pay cycle is considered a crucial strategic operation, in which expenses need to be closely monitored. 10 Reasons Why Automation of Procure-to-Pay Cycle Is Critical Organizations need a comprehensive approach by which operations are aligned to lower procurement costs. Every department needs to be made accountable for its costs and effective use of assets. This is only possible through automation, which includes monitoring of requirements and expense optimization. It helps to procure the assets at competitive prices. Automation of your procure-to-pay cycle can bring immense benefits to minimal investments. Here are 10 of them. 1. Save time Automation means faster cycle times. An Aberdeen Group report found that organizations that have implemented e-procurement initiatives have halved their transaction cycle time. This means faster order processing, instant approvals, and better decision-making. The future belongs to organizations that have automated systems, as speed, efficiency, and effectiveness of procurement solutions provide a competitive edge in the market. 2. Save money Big savings are now possible with manual procurement fading into the future. Shortened procurement and fulfillment cycles reduce administrative costs and improve staff productivity. Employees can use their time more strategically instead of pen-pushing. Consolidation of orders from different departments results in manifold advantages like decreased cost per transaction, reduced maverick spend, increased negotiation power, and volume discounts. 3. Reduce errors Automation ensures better accuracy. Multiple receipts, documents, and bills are no longer in the picture as vendors log in their quotes and departments key in their requirements. Endless matching and re-submission of documents are no more the order of the day. Clerical errors are minimized and you can identify the best and worst-performing assets and other variables to plan for the future. 5. Be compliant Automated procure-to-pay solutions ensured standardized procurement practices, pre-negotiated pricing and real-time data that ensures compliance. Maverick spending comes down to zero as procurement managers look out to established vendors who provide better prices than the rest. Standardized equipment and products are bought only from vendors that ensure compliance across the board. 5. Improve negotiations Large volumes are open invitations for vendors who can provide discounts and still get better profit margins. When there is the consolidation of requirements from different departments, procurement managers and executives are better placed to negotiate stronger terms that deliver profits. 6. Get vendor visibility Automated procure-to-pay solutions provide better visibility to the procurement process and ensure single-window clearance. Vendors do not need to meet multiple stakeholders and fill up diverse forms just to quote the price. All they have to do is log in to the cloud-based system and fill up the electronic forms. 7. Be better informed Procurement policies can easily be accessed and any deviations can be instantly red-flagged. Executives, vendors, and agencies just need to access the procure-to-pay system for clarification about the process and polices to ensure compliance. 8. Communicate completely Procurement communication is never blocked as every transaction leaves an audit trail. The information that can be accessed immediately upon authorization and the entire pipeline is better managed. 9. Enhance control Executives and managers have access to real-time business data that can instantly refer to the financial health of their organizations. With automated procure-to-pay solutions, you can access all spending with the click of a mouse. Minute information that can change purchase decisions for the betterment of the company is available. Detailed control of the process helps limit spending and stick to the budget. 10. Gain the competitive edge Reduced costs, increased accuracy, better control, and transparency give you a smart, streamlined, resourceful supply chain. The smarter purchasing decisions boil down to better financial health that can give you a competitive edge in the market. Automation helps you to build a smarter procure-to-pay system. It is imperative that organizations move on from cumbersome manual operations to cloud-based automation systems to streamline their supply chain and procurement processes. Expensing platforms are easy to use and adaptable automated systems which facilitate procurement, invoicing, and expense management. With Expensing procure-to-pay systems, the procurement process becomes better streamlined, with faster cycle times and better control and visibility. Image Credit: stampli.com Read Also: Reasons to Support Nonprofit Organizations That Help Save the Environment How To Choose A Practice Management Software For Your Law Firm

6 Shameless Examples of Product Placement in Movies We’d Like to Forget

Imagine you're on the edge of your seat in the middle of an action-packed, spellbinding movie. After a few climactic scenes, the main character makes a frantic phone call. He then cracks open a can of soda. Nothing about this scene seems out of the ordinary. The character is simply quenching his thirst after a big police chase or a kung fu brawl. That is until some familiar brand of soda appears on the can in a big, bold, unapologetic font. Talk about a plot twist. But product placement in movies is nothing new. Old school marketing techniques show how far companies will go to advertise. They'll even go as far to pay directors and producers to feature them in films. There have been great instances of advertising that worked well in films. But there have been plenty of others that were so shameless and unnatural, we wish we could forget them. Here are 6 of the silliest, most cringe-worthy moments of advertising in movies. 1. Starbucks (You've Got Mail): 'You've Got Mail' may be the first film to portray online romance. Given that it takes place in 1998, AOL was practically its own character in the film. Without it, Tom Hanks and Meg Ryan's characters would have never "met" and fallen in love. But AOL wasn't the only company to get prime ad space in 'You've Got Mail.' At the beginning of the film, Tom Hanks quips about the obscurity of Starbucks. His character's snarky commentary doesn't serve much to the plot. But it does help to give the audience somewhat of an introduction to his character. All while appealing to pretentious coffee drinkers like his character in the process. 2. Designer Brands (Sex and the City): Curious which movies with the most product placement made our list? It shouldn't come as a surprise that the 'Sex and the City' film featured dozens of fashion labels. After all, fashion was a constant theme throughout the hit TV series. The series has long appealed to women in the 20-30 age bracket. So, when it went to the big screen, tons of the biggest fashion labels came calling. You better believe Louis Vuitton and Chanel made a handful of cameos throughout the film. But some other products made the cut, too. Nike, U-Haul, Apple, and Marie Claire are just a few of many brand name drops in 'SATC'. Producers and creator Darren Starr were clearly not ashamed. 3. Reese's Pieces (E.T the Extra-Terrestrial): Not all instances of product placement in movies are bad. Certain films have done it so subtly we hardly pick up on the smell of advertising. Steven Spielberg's 'E.T the Extra-Terrestrial' is undeniably one of those movies. Who could forget when Elliot entices E.T by scattering Reese's Pieces around the woods and back to his house? Hershey's certainly cashed in when E.T became a box office hit. But this was back in 1982. So, can product placement still hold merit today as an advertising technique? The technique may actually be more effective than ever before. You can discover more about the different ways this technique continues to work. 4. Popeyes Chicken (Little Nicky): Whereas E.T is a good example of subtle product placement, Adam Sandler's 'Little Nicky' is not. It's one of several Happy Madison comedies that wasn't well-received by critics. But it gained a cult following for its ridiculousness and quotability nonetheless. In one scene, Adam Sandler, who plays the kindhearted son of Satan, learns how to eat with the help of a talking dog. What does he learn to eat with? Popeyes fried chicken. And the large takeout box of it sits in the center of the shot. Even a big K-mart bag makes a small cameo, as well. The scene concludes with Nicky proclaiming how awesome Popeyes chicken is. Not subtle in the least, but the scene is something fans continue to quote to this day. 5. "I Will Not Bow to Any Sponsor" (Wayne's World): Is it any less shameful when a movie calls itself out on its attempts to advertise? Few films are able to make fun of themselves about their blatant attempts to advertise. But the first 'Wayne's World' film provided a plot where it was possible to do so. Wayne and Garth sell their public access show to a big-time TV producer. In the build-up to the climax, the producer confronts Wayne and Garth about their contract. They agreed to air an interview with the show's new sponsor, but Wayne insists otherwise. What follows is a satirical scene of obvious advertisements all surrounding Wayne's opposition. While opening up a box of Pizza Hut, Wayne proclaims, "I will not bow to any sponsor." Wayne goes on to explain that he doesn't believe in "selling out" while holding a bag of Doritos and drinking a Pepsi. Garth also gives his two cents on the idea of selling out while clad in Reebok gear from head to toe. 6. Heineken (James Bond Franchise): The character James Bond has always had an affinity for dry martinis. This trait has inspired fans of the franchise to become martini drinkers for decades. But over the years, James Bond has dabbled in other commercial alcoholic drinks. In 1997, the famous film franchise partnered up with the Dutch beer company, Heineken. Heineken has advertised the James Bond films since 1997's 'Tomorrow Never Knows.' The ads have always been over the top, contributing to the promotional side of the Bond franchise. But Bond himself never drank the Dutch beer until 2012's 'Skyfall.' In one scene, while James Bond is in bed cuddled up with his latest love interest, he drinks a Heineken. For any fan who has ever wished to be like James Bond, this scene is definitely inspirational. At least that's the kind of association Heineken had intended to portray. The Power of Product Placement in Movies: If you've ever watched a movie and noticed an advertisement, you may have reacted one of a couple of ways. You may have hardly noticed or didn't care all too much. You could've felt preyed upon as a consumer or felt the ad ruined the experience. Or, you may have thought to yourself, "Wow. That was actually a great instance of advertising." Product placement in movies allows companies to reach a worldwide audience. Depending on how big the film is, these audiences can reach into the millions. When characters we love use certain products, we're more inclined to buy them. But there are other lots of other innovative and clever ways to advertise in movies - and beyond. If you're in need of some inspiration, check out more advertising news and ideas. Read Also: Online Marketing: Selling Your Product And Services Important Things To Consider When Packaging Your Product

Thinking of becoming an entrepreneur? What is the cost to start a business?

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4 Ideas to Bring Your Team Closer Together

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Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Why Your Business Should Care About Social Responsibility

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Thinking of becoming an entrepreneur? What is the cost to start a business?

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Work from wherever you want

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Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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