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Assignment 2 Administrative Costs
Administrative costs that will be required
Before the start of the business, some costs will be unavoidable. Such administrative cost will be office supplies, rent, staff wages and benefits, and utilities. Since the office space as well as space for the business will be rented, costs of rent will be part of starting capital (Scarborough, 2016). Secondly, as time goes by, consulting expenses will be necessary. Since this will be my fast major investment, I will need consultancy services in areas such as legal advice as well as physical planning expenses. Another expense that can’t be avoided will be costs of insurance. As a way of securing the business for any eventualities (Niskanen, 2017).
Will you need to rent a building or will your business be home-based?
I will need to rent a building at the start of the business since my home cannot house all facilities. Another reason for renting is because of the staff who may be comfortable working at an independent place other than my home.
Will you need to advertise?
Since this is a new business in the area and no one has located such business nearby, advertising may not be a priority in the first case. However, based on proceeds of the first few months, the performance will determine whether to advertise or not (Abushama, 2016).
Will you require electricity and other utilities?
Yes, since the business entirely depends on power, I would have to use electricity. All the computers and printers as well as play station monitors will need power. Since blackouts rarely come by, standby power from other sources such as generators may not be necessary.
Will you need a manager to oversee the business?
No, I will not need the manager immediately as I will be available to oversee all operations of the business.
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