Initial Cost
When planning and implementing a new project, investment or business venture, initial costs are often incurred. These initial costs, also known as start-up costs or start-up costs, include all expenses incurred in the early stages of a project to get it up and running and operational. They are a crucial part of financial planning and play a role in determining the long-term feasibility and profitability of the project.
What are initial costs?
Initial costs include various expenses such as research and development, market research, legal fees, equipment acquisition, infrastructure set-up, staff recruitment and training, and other costs incurred prior to the operational phase. These costs are a one-time investment and relate to the initial preparations and steps required to get the project off the ground. Initial costs are not usually considered operational costs since they do not occur on an ongoing basis, but instead occur at the beginning of the project.
