Enterprise// Business: How much money?..

After researching into all the costs we would need to consider each month, year and for starting up the business, I have worked out (approximately) how much we would need to borrow, how long it would take to repay it, the monthly costs of running out business and how much we would charge an hour.

Over head costs//

Business insurance: ~ £12pcm
Professional and product liability: ~ £34pcm
Public liability: ~ £12.50pcm

Premises costs:

Rent/ business rates/ electricity/ gas/ repair/ security

Rent: £750pcm/ £9000pa

Utility bills: ~ £130pcm

Total: ~ £10,560pa

Telephone: ~ £20pcm
Mobile phone: ~ £25pcm

IT costs:

Software: ~ £1810 (Adobe creative suite, one off) x2
Computer: ~ £1250 iMac x2 (two team members already have laptops with software)
Repair: ~ £300pa

Research costs:

Books and magazines/ materials for research/ travel for research

~ £1000pa

Professional advice/ accountant and solicitor: ~ £500pa

Promotional costs: ~ £2000pa

Studio equipment: ~ £600 (one off)


I worked out that in order to get the business up and running we would need to borrow around £25,000 from a bank. The bank we looked at was Barclays, they would charge a 5% interest rate over the amount we borrow over 5 years. Meaning that we would borrow £25,000 but pay back £30,000 over the 5 years. This means that our monthly repayments would be £500.

This makes our monthly payments for all of the above:

~ £1785pcm

Meaning each day we would need to make ~ £60 to break even

After working out how much we would need to make to break even, we decided on an amount of which we would like to be paid per day and our hourly rate as a business.

For example if we wanted to earn ~ £25,000pa each, we would need to charge £125 a day each. Making our hourly rate ~ £18.