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I worked on a few gaming products during covid lockdown and now I'm presenting my business plan to incubators.

I think my operating costs like rent, electricity, etc. are zero since I'm operating from my house that we own and I'm not hiring any extra staff for the first few months. Should I simply say my operating costs are zero on business plan? I'm going as lean as possible to save money.

Flux
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Mridul
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No mystery here, you just say "minimal".

Your costs are not zero and it would be very naive / newb to use the term "zero".

If you have not yet filled in taxes for a year where you had a business like this, you'll soon realize that you do in fact have costs for devices, internet, electricity, use of a room in the house as an office etc. Also be aware that you'll have $1000s in costs to just set up a corporate entity etc.

Again, no mystery, you just say something like "minimal" and put in a nominal amount. Perhaps something like

  • Basic operational costs 12 months (bandwidth, equipment etc), $1500
  • Corporate setup, accounting $900
Fattie
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  • Thanks, is is appropriate to mention anywhere I'm working from house? – Mridul Apr 24 '21 at 14:58
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    I'd keep it low key. If you think about it pretty much EVERY founder works from their house. From where else would you work? I would say, since it's dead obvious you're not going to be "renting an office!" (which would be 20 grand a year) there's no real need to explicitly mention it, it would be a bit weird. So in short, no need to mention it! Best f luck !! – Fattie Apr 24 '21 at 15:18