COSTING

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COSTING
“A good accountant is a good poet. He appreciates the true value
of things.” -Robert Frost
 ) ) ) ) ) ) ) ) ) COSTING
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COSTING?
Costing in a startup involves tracking and
managing both one-time and ongoing expenses
to ensure financial sustainability. Key costs
include startup expenses (legal fees, equipment,
website development), fixed costs (rent, salaries,
utilities), and variable costs (marketing,
commissions, materials). Proper cost
management helps startups budget effectively,
forecast revenue, and achieve profitability.
Balancing expenses with revenue is crucial to
avoid financial strain and ensure long-term
success.
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IMPORTANCE OF COSTING IN
STARTUPS

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Accurate Pricing Strategy Budgeting and Financial Planning
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Types of
costs
TYPES OF
COST

VARIABLE SEMI VARIABLE

FIXED
COST COST
COST
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DRAWBACKS OF MISCALCULATING COSTS IN
STARTUPS

PROFITABILITY
INACCURATE CASH FLOW
MISUNDERSTANDIN
PRICING PROBLEMS
G
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TABLE OF CONTENTS
CASE STUDY
Contents
DOODHWALA (2015– HOUSING.COM (2012–
01 2020) 02 2017)

IMPORTANCE OF
What What
Happened:is What Happened:
COSTING IN STARTUPS
Doodhwala promised a
Costing? Housing.com burned through
modern milk delivery over ₹120 crore on
solution but underestimated marketing campaigns,
03
the complexities and costs of
04 Drawbacks
including of
a massive
Types
cold-chain Of Costs
logistics and thin miscalculating
rebranding costs ain
effort, without
profit margins in the dairy startupsmodel in
sustainable revenue
sector. place.
 WHAT IS COSTING?
Costing in a startup involves tracking and managing both
one-time and ongoing expenses to ensure financial
sustainability. Key costs include startup expenses (legal fees,
equipment, website development), fixed costs (rent, salaries,
utilities), and variable costs (marketing, commissions,
materials). Proper cost management helps startups budget
effectively, forecast revenue, and achieve profitability.
Balancing expenses with revenue is crucial to avoid financial
strain and ensure long-term success.
 IMPORTANCE OF COSTING IN
STARTUPS
Financial Stability Profitability Management

Informed Decision Making Cash Flow Control

Attracting Investors Resource Allocation
Drawbacks of miscalculating
costs in startups
WRONG STRATEGIC
INACCURATE PRICING DECISIONS
CASH FLOW PROBLEMS
.
INCREASED FINANCIAL
RISK
PROFITABILITY LOSS OF INVESTOR
MISUNDERSTANDING CONFIDENCE