Business Start-up Costs

Starting a business can be one of the most rewarding things you'll ever do. But it's not without its costs. Costs such as computers, furniture, cars and supplies (not to mention all the hours spent working on your idea) can quickly get out of hand.

In this blog post we've put together a list of business start-up costs broken down by category so that you know exactly what to expect before you dive in.

Table of Contents:

INTRODUCTION

1. COMPUTERS AND SOFTWARE FOR START-UP BUSINESSES – EXPECT TO SPEND UP TO $2000 + (PART 1)

2. BUILDING AND MAKING GOODS – EXPECT TO SPEND UP TO $1000 + (PART 2)

3. PLACES TO START A BUSINESS – EXPECT TO SPEND UP TO $200 + (PART 3)

4. PHONE, INTERNET AND TELEVISION – EXPECT TO SPEND UP TO $510 + (PART 4)

5. RENTING VS BUYING YOUR HOME – EXPECT TO SPEND UP TO $26,000 + (PART 5)

6. ELECTRONICS, GAMES AND MUSIC – EXPECT TO SPEND UPTO $450+ (PART 6)

7. OTHER BUSINESS COSTS – EXPECT TO SPEND UPTO $500+ (PART 7)

8. SUMMARY

1. COMPUTERS AND SOFTWARE FOR START-UP BUSINESSES – EXPECT TO SPEND UP TO $2000 + (PART 1)

Goal: $2000

The first step in starting a business is to find a computer or laptop that will serve your needs. You'll need new software, hardware and any other software you may need to get your business up and running. It's certainly worth investing in a computer with an extra monitor, since you'll have many windows open at once (and have the ability to work on several different projects at once).  You might also consider buying software like Adobe Photoshop, which can greatly enhance your photography skills.

You can get a basic, cheap laptop or netbook for around $300, or pay a little more and get something a little more high-end.  You'll need to monitor your computer use as you're getting started. You won't have much time to work on your business if you're constantly distracted by Facebook, YouTube and email – push yourself to get the most out of each workday.

It's important to remember that the cheaper machines simply won't have the processing power or memory that you'll need to run all your latest software at the greatest speed. Perhaps consider buying an i3 mini laptop which should clock in at around $475 from most companies such as Dell, HP, Toshiba etc..  That price might not get you the most powerful processor, but you'll be able to run your software without significant problems. You'll also need a monitor, and don't forget software and operating systems.  The cheapest software will be available for around $50 for programs such as Photoshop, Office and Quark Express.  

As far as operating systems go, you can choose from Windows 7 or Windows 8.  We recommend starting off with Windows 7 since it's more user friendly than Windows 8. Another major consideration is the security program that will come with your computer (most likely Norton or McAfee).  You'll want to buy your computer from a reputable company such as Dell, HP, Toshiba etc. and opt for the one that gives you the most security features.  This will provide you with many hours of peace of mind.  Plus, if you decide to switch computers down the road, it's easy to transfer all your software over to whatever new machine you're using at the time (since it's probably in the same format).

Besides computers and software, there are other things (such as graphics tablets or paper) that can make it difficult to work on multiple projects at once.  You might consider buying these items if your business will have multiple customers (such as those selling artwork in their storefront). However, our suggestion is to wait as long as possible before buying these items.  Although they can help you develop a variety of skills, these items tend to make it difficult for any one customer to get immediate attention.  Unless your business caters heavily to one type of customer (for example, those who only want black and white prints of their wedding photographs), there is likely a way around the problem.

2. BUILDING AND MAKING GOODS – EXPECT TO SPEND UP TO $1000 + (PART 2)

Goal: $1000+

Your first order of business once you have a computer and you begin applying for software comes with finding out how much the cost will run for everything on your list.  We'll break down the cost of each item from there on, but first let's talk about the basics.

Consider: Software  - $50 to $75 per month.  Add another $25 if you have more than one program, plus at least an extra monitor and a wireless keyboard/mouse.  This will be required to run software such as Photoshop and Illustrator. If you don't already have a graphics tablet (for drawing freehand), it will probably run around $350 to make your life easier.  If you're taking photographs, a $200 camera (or less) will do the trick.  And if your business is very hands-on, you might want to spend an extra $500 on a camera so that you can take pictures of your work as it's being made. Unless you're planning on printing your own business cards and getting mass quantities of stickers, don't even think about spending more than $150 for each item (and make sure your business name is put on both).  However, this price should include envelopes and shipping costs. Consider shelving units or bookcases where all of your supplies will be kept – if needed for extra space for photographing things like furniture or artwork.  We recommend using an old bookshelf or shelf unit and making it look new by painting it, or purchasing one that's already new.  If you're looking for ideas for a free shelving unit, try searching on Google for "free shelves" or "free shelving plans".

You'll want a good computer chair to wear out your butt over the years.  The cost of this item can range from $100 to $400 depending on the quality (leather is usually better and more comfortable than fabric). Chances are, if you want to stay in your apartment, you'll be remodeling the place before long.

Conclusion: After spending up to $1000 on your business, you'll have spent around $1500 to get it off the ground.  That's a pretty good start and it will definitely be worth it.

So now that we've set a goal, how do you go about making this happen? We want you to start by researching what items you need at least 3 weeks before your website and business space are complete.  This will give you plenty of time to research what it will cost and find a good deal on whatever items are missing. You can make this shopping trip as casual or formal as you'd like – with your mother, adult child or best friend along – but try not to shop when you're hungry or tired.