This topic discusses the estimated startup costs for this business idea. Startup costs are what you need to pay in order to be ready to begin business operations. The amount of these costs also helps you decide if the idea suits you.
List of items in startup costs
Note: I am only showing one month for certain expenses. You should be able to get your first job or two in a month. Then these items become operating expenses, not startup costs.
The assumed startup costs for this business idea, using a frugal style of business operations, consist of the following items:
Advertising and promotion (1 month) -- Small classified advertisements or flyers delivered to likely neighborhoods.
Business insurance (1 month) -- Business liability insurance. (Talk to a local insurance agent to see if you need this coverage.)
Governmental requirements -- Local fees and business license. (Note: You might also be subject to state and federal deposits and registration fees, but these will vary. So I have not included them in these startup costs.)
Job supplies -- Marking pen or pencil and trash bags.
Office equipment -- Business telephone; desk accessories (stapler, paper clips, pen and pencils, etc.); and listing adding machine.
Office supplies -- Check blanks for business checking account, file folders or large manila envelopes (for filing papers), lined writing tablets, pads of accounting journals and ledger, and pads of standard job bid forms.
Other operating expenses (1 month) -- Business telephone expense.
Reference book -- Bookkeeping for Dummies (Paperback) available from Amazon.com or other online bookstores. (Note: The "for Dummies" series of books are easy to read manuals for normal people, not dummies.)
Here are the dollar amounts for a frugal business operation:
Note: See the Planning costs and expenses subtopic in the Business Plan on another page for ways to reduce these startup costs.
This topic satisfies the Starting business operations subtopic in the Business Plan page.
Preparing for business operations
Completing the startup requirements -- This is the last step needed just before you start business operations. See the Listing the startup requirements subtopic in the Business Plan for the items remaining to be completed.
As a minimum, you should have discussed the business idea with your family, set up your business entity, and satisfied all governmental and insurance requirements.
Local information needed -- You need the location of local dumpsites, fees charged for dumping, restrictions on materials allowed to be dumped, and rules for hauling trash.
You need a list of storage organizers (including components, dimensions, and prices) that are available from local building supplies or "big box" stores.
You also need to see if a building permit and/or contractor's license is needed before you start working on a job in your local area.
Operating the business
Soliciting customers -- Place classified advertisements in your local newspaper and/or the newsletter of the local property owners association. You also might want to deliver flyers to likely neighborhoods (where rich people live). Use a simple, honest description of your services. Once you become well known in the community, you should benefit from word of mouth advertising from satisfied customers.
For additional ideas on soliciting customers, see the Sales Methods page in another section.
Getting jobs -- Hopefully, some of the people who read your advertisements will inquire about your services. During this initial telephone conversation, you should determine if you are willing and able to provide the desired services. If so, you may want to discuss the tentative cost of the job. However, in most cases you probably want to inspect the job site before quoting a price.
I recommend that you meet with customers in their homes or offices, or at the job site. Your neighbors may object to having a stream of strangers arriving at your home. Also, meeting with customers in your home may violate the zoning rules in your town or city.
Preliminary job activities -- After greeting the customer at the job site, you need to discuss the type of storage organizers wanted. The customer may already have decided on what type of organizers they want. Or, they may need your assistance in selecting suitable organizers.
Then you can take measurements at the desired locations for the storage devices.
The customer may be in a hurry and want you to work on a holiday or weekend to get the job done soon.
You can use your job bid forms to estimate the costs of installing the storage devices. The cost of materials can be estimated, subject to actual retail cost. This bid should include the fees for any extra services to be performed, such as working on weekends or at night, and hauling away any trash. The bid probably should include a completion date, subject to availability of materials. If the customer accepts your bid, you both can sign the bid form.
Obtain any needed building permit or contractor's licenses before doing any work.
You need to set the time and date for starting work, and arrange for access to the property. You also may want the customer to pay you for part or all of the estimated costs of materials before starting the job.
Main job activities -- See the Main procedures topic below.
Final job activities -- Inspect the premises to verify you have finished all required tasks. Remove all your equipment and supplies. Gather up all the trash.
Collect your agreed upon fee from the customer. Haul the trash away, if part of your agreed upon services.
Job equipment -- Typical items needed: aluminum step ladder, assorted drill bits and screw bits, assorted screw drivers and nut drivers, broom and dust pan, claw hammer, crescent wrench, electrical extension cords, heavy-duty 1/4 inch and 1/2 inch electric drills, levels (2 feet, 4 feet, and 6 feet long), pliers (regular and side cutting), portable work light, stud finder, tape measure, utility knife, and water container (for drinking.
Job materials -- Typical storage items: cabinets (standard sizes or custom-built), cupboards (standard sizes or custom-built), peg boards, rods for clothes hangers, shelving units, shoe racks or pockets, sliding drawers, wall mounted shelving, and wire baskets.
In addition to the above, you can place various items to hang below the main clothes rod. These could be a second rod, shelving, storage bins, and so on.
Related activities -- Designing and assembling custom-built cabinets.
Installing cabinets -- Use the stud finder to locate the studs inside the wall where you will install the cabinet. Transfer this measurement to the inside back (and possibly sides) of the cabinet. During installation, use wooden shims under the bottom supports to level the cabinet. Then screw it into the back wall, and any sidewalls. Use matching trim to cover any gaps that show.
Installing closet organizers -- Most of the closet organizers come with installation instructions. You would follow these instructions when doing the installation work.
Installing cupboards -- Use the stud finder to locate the studs inside the wall where you will install the cabinet. Transfer this measurement to the inside back of the cupboard. During installation, use temporary props (or a helper) to support the cupboard at its desired location. Then screw it into the back wall. Use matching trim to cover any gaps that show.
Installing pegboards -- Mark the desired location of pegboard on the wall. Use the stud finder to locate the studs inside the wall where you will hang the pegboard. Transfer this measurement to the pegboard. During installation, use temporary props (or a helper) to support the pegboard at its desired location. Then screw it into the wall.
Installing wall mounted shelving -- This shelving uses vertical metal standard with slots, or large metal angle brackets for support. Use the stud finder to locate the studs inside the wall where you will place the standards or brackets. Mark the desired location of the first standard or bracket on the wall where a stud is located. Use a level to transfer this mark to where the next stud is located. After all marking is completed, screw the standards or brackets into the wall. Then snap the horizontal shelving supports into any vertical standards at desired locations. Apply the shelving, and affix to any angle brackets.
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