A fifth factor to consider: Start-up costs. How much money will you need to get going? Each expense factor is important because they eat up capital and need to be closely monitored by you.
A list of potential start-up-cost categories includes: inventory, facility rent or purchase, facility renovation and remodeling, utility deposits, prepaid insurance, vehicles, licenses and permits, tools and supplies, furniture and fixtures, equipment, travel, working capital, payroll, and professional services, such as legal and accounting.
These are all one-time costs to get your business up and running.