One of your biggest outlays, of course, will be the cost of setting up your physical space: your storefront, your office, your plant, or the room in your home.

Here's a look at the costs associated with your physical space:

• Lease payments — include amounts that will need to be paid for equipment and facility leases before opening. Determine this amount by bids and contracts. Expect to pay several months' worth of lease payments before you open the doors.
• Fixtures and equipment — include in this amount all fixtures and equipment needed for your new business. Finance this amount on a long-term basis if possible.
• Installing fixtures and equipment — this should be the amount necessary to make all the fixtures and equipment ready for use. This should also be able to be bid in most cases.
• Decorating — this will include cosmetic improvements to the new business facility. Usually it is possible to get bids and ideas from interior decorators. Even if you are able to perform the decorating yourself, the bid will give you a good estimate of expected cost.
• Remodeling — if your new business location will require any remodeling, include it in this category. Obtain bids from contractors for your remodeling. Contractors will usually provide free bids after you have the plans drawn up.
• Signs — signage costs will vary from a small amount to a very substantial cost. Obtain bids from sign companies. Finance this amount through long-term borrowing, if possible, or it will hurt your short-term cash flow.
• Supplies — include all office, cleaning, and employee supplies in this amount.

See also our discussion of equipping your business for more details on facilities and equipment. If you intend to work from home, your costs will be much less than if you rent space outside the home. For more information on home-based businesses, see our discussion of setting up your home office.