Business licenses and permits Certain legal fees Advertising for the grand opening If you were opening a restaurant, you would have many start up costs. And these are just a few. Think of all the other start up costs you would have. Operating expenses come after the business has been started. They are necessary to run the business.
Many businesses take a few months to maybe a year or longer to begin to show a profit.
Once your restaurant is open, you will have regular operating expenses. You will continually have to buy food, pay the cooks and waitresses, pay sales tax, make monthly rent payments, and much more. It is important to determine how much money is needed each month to operate the business. Personal expenses are those costs that are necessary for you to live. The money you need to start and operate the business is important.