Stage 1: What are your start-up costs?
Sit down and list what you will need to pay for before you start generating any business. Some examples are given in the table below.
 
Cost Item
Estimated Cost
Office equipment (desks, pens and computers, etc.) excluding application software
£1,000
Office lease deposit
£2,000
Sales and marketing literature
£1,000
Your salary – for the period while you set up the business. Your salary then becomes a fixed cost once the business is running.
£2,000
Website construction
£5,000
Guarantees and trade association memberships (as per section 4 on regulation and legalities)
£5,000
Software, such as back office booking system
£5,000
Legal costs
£500

As you work through the rest of this section, you may well decide to defer whatever start up costs you can. If this is the case, consider the following:

  • Leasing rather than buying. While this is almost always more expensive in the long run, it will lower initial cost
  • Negotiate every deal you can as a 'pay as you go' monthly charge rather than a start up cost
  • As you will read in the section on regulation and legalities there are some significant start-up bonding costs to creating a travel business. The trust account system run by TTA reduces these costs significantly