New business guide: Part 3 – Analyzing cost

New businesses are expensive. They will require a large cash injection, or a steady stream of funds to maintain operations. For most, it is a combination of both. You need to ask yourself; do you have the means to fund your startup, or will you need to borrow money? Will this be a side project, or will it become your sole income? All these finance questions need to be thought out carefully.

Many startups fail because they run out of money before turning a profit. Always overestimate the cost of items to give you a safety net. This will increase the odds of success. It may seem silly, but it always good practice to have more and not need it, than less when you do.

Breaking even.

By performing a break-even analysis, you will determine the startup cost of your business. This is an essential element of financial planning and allow you to determine when or if you will become profitable. 

• Fixed Costs ÷ (Average Price – Variable Costs) = Break-Even Point

This formula will allow you to determine the minimum performance your business must achieve to avoid losing money. It can then allow you to determine the level at which you need to hit to be profitable. 

What can you learn from a breakeven analysis?

1. Profitability.
   Ask yourself: Will my expenses be covered by revenues? Do all of my products or services turn a profit? Or are some sold at a loss?
2. Pricing. Creating a pricing structure that details the values of your products is important. The dollar amount must be instantly comparable to the competition. 
   Ask yourself: Are they fixed or variable costs, what is the total? How much is your labor worth?
3. Stock needs. How much do you need to sell to have your revenues at an appropriate level? 
   Ask yourself: How can I reduce cost? How can I improve sales?

Watch your expenses.

Do not overspend when starting a business. Make thoughtful purchases that add to the true value of your business, flashy items are expensive and are not a good idea at the start. Constantly monitor your expenses and adjust accordingly.

A storage unit is a solution to a lot of your business needs.

Check out some of our key features:

• Drive-up access allows for ultimate convenience
• Heated units let you store with comfort
• Climate controlled units to product even the most delicate items
• Online account management gives you the control
• Packing and moving supplies allow you to tackle any move
• Extended access to storage units, including holidays
• Live chat customer service allows you to get the answers you need
• Month-to-month contracts with flexible payment options
• State-of-the-art lighting to be easy on the environment

If you do not have a storage unit, visit selfstor.ca and book yours today!

For help on what size storage unit you will need, check out our helpful size guide: https://www.selfstor.ca/storage-unit-size-guide/

Talk to your local Self Stor manager by dialing 1-833-523-0453, they are available to reserve units or answer any questions.

Guelph

Self Stor’s Guelph facility is easily accessible from all parts of Guelph and Kitchener, with close proximity to the University and local businesses, featuring storage unit sizes from 5×5 to 20×30. Self Stor Guelph offers a wide range of mini storage options, including heated units, as well as traditional drive-up units. This range of products allows Self Stor Guelph to be the self storage provider with the units that will fit everyone’s needs. Fantastic options for business and commercial storage!

595 Elmira Road North
Guelph, N1K 1G5, Ontario

View Location

North York

If you’re looking for trustworthy self storage provider that offers extensive protection of your valuables, you’ve come to the right place. Here at Self Stor North York, you can leave your precious items in our secure storage lockers with confidence. Knowing that it will be safe and secured in our Toronto East Facility located in North York. Self Stor North York offers a wide range of mini storage options, including heated units, climate controlled units, as well as traditional drive-up units or standard units. Fantastic options for business and commercial storage!

150 Bermondsey Road
North York, M4A 1Y1, Ontario

View Location

Richmond Hill

If you’re moving to a new home around the Richmond Hill area, consider keeping some of your valuables at our Self Stor Richmond Hill facility as we can help lessen the stress and hassle of moving. Self Stor Richmond Hill is a self storage provider with more than a storage space for you. Along with every self storage solution we offer, you will receive security and protection for your belongings, convenience, and the guarantee of outstanding service. Self Stor Richmond Hill offers a wide range of mini storage options, including heated units, and climate controlled units coming in June 2022. Fantastic options for business and commercial storage!

25 Newkirk Road
Richmond Hill, L4C 3G4, Ontario

View Location

Etobicoke

At Self Stor Etobicoke, you will find comprehensive services for the secure safekeeping of your possessions. Our clients’ valuables are secured with our state-of-the-art video surveillance 24/7. Self Stor Etobicoke self storage provider that is conveniently accessible from Downtown Toronto, Mississauga, Brampton, and Etobicoke. Self Stor Etobicoke offers a wide range of mini storage options, including heated units, climate controlled units, secure storage lockers, as well as traditional drive-up units or standard units. Fantastic options for business and commercial storage!

55 Kelfield St
Etobicoke, M9W 5A3, Ontario

View Location