Starting a business in Ventura County takes plenty of determination and capital. For enterprises that require office space, equipment and staff, chances are they will also need to pay for legal fees, payroll and administrative costs.
These costs can add up for a brick-and-mortar business in Ventura County. Maintaining a realistic perspective will help avoid overestimating revenue or underestimating costs, which is a common equation for business failure. Here’s a look at some of the fundamentals in planning and funding your investment in Ventura County.
Operate Within Your Means
Ideally, the funding for your business is driven by revenue. However, a carefully planned investment in business usually means taking the time to address scenarios that may cause you to borrow or raise money. Keeping expenses within the budget will allow for more accurate forecasting and help to avoid falling into a debt spiral. The common microbusiness, according to the U.S. Small Business Administration, costs about $3,000 to launch.
Separate Short-Term and Long-Term Costs
Your budget planning should divide expenses into short-term and long-term estimates. Short-term expenses include one-time costs, such as the cost of installing new equipment. Long-term costs include a subscription to a cloud service or running marketing campaigns. Separating the two will help you track and manage your business’s cash flow.
Differentiate Between Essential and Optional Costs
You can run a lean small business when you focus on essential costs and limit optional costs. Differentiating essential and optional costs helps you prioritize spending. Businesses that have adequate funding can consider whatever optional costs they believe will give them a competitive edge.
Identify Fixed vs. Variable Costs
Fixed costs tend to be for monthly services such as IT support, while variable costs can be for different kinds of unplanned maintenance. Identifying fixed and variable costs will help you make accurate forecasts of future expenses for your business investment in Ventura County.
Business Resources Available in Ventura County
The current pandemic has affected businesses on an unimaginable scale, but the good news is that multiple COVID-19 resources are available for businesses in Ventura County.
- Loans from EDC Loan Program
EDC or the Economic Development Collaborative offers loans for businesses of all sizes operating in Ventura County. With six distinct loan programs, EDC aims to help create greater job opportunities and increase economic activity by providing easy access to affordable capital.
- Workforce Development Board of Ventura County (WDB)
WDB offers valuable resources to both employers and workers, creating a readily available pool of employment opportunities and top-notch talent. Employers can benefit from services offered that include employee recruitment and on-the-job training. Likewise, job seekers can enhance their skills via WDB programs that can be availed for free through America’s Job Center of California locations in Ventura County.
Would you like expert help in setting up your business in Ventura County? At Business Forward Ventura County, we help businesses get on their feet so that they can enjoy the commercial delights of Ventura County. That is why we aim to be your local resource center for help. For more information on getting started, contact us today.