Small Business Coaching on
How Much It
Would Cost to Start a Business
By Allison Babb
You
are starting a small business and before you take the leap, you want
to know just how much you should plan on having for a business
budget.
I
wish I can tell you a ballpark figure of how much it would cost.
Without knowing your specific business venture, it's virtually
impossible to say exactly how much it would cost to start your
business. But I do know a variety of things you should
consider in determine what that cost would be for you.
Type of Business:
One of the first things is to decide what type of business you are
going to be in.
Brick and Mortar
? that means you have a physical place that you rent or purchase to
start a business. Startup costs are much higher for this type of
business and typically require loans to get started.
Internet Business
? most of your business happens online as is true for me. Startup
costs can be darn near zero, but there some things to consider
nonetheless. More on that below.
Bricks and Clicks
? Your business happens both offline (in a physical location) and
online. Startup costs will depend on which side of the business you
start with.
There are others like MLM (multi-level marketing) where you sell
other people's products etc. which I won't go into here.
First, do Your Research:
Before you start any business, I would recommend talking with
someone who has already been down that path:
Find someone who has already started a business such as the one you
have in mind. Ask them what costs are involved.
Check out your local Small Business Association and they can
probably help estimate the costs or help you find someone in a
similar business who can help you estimate the costs
Libraries and web sites are great sources of information on the
business you would like to start.
Brick & Mortar Expenses:
If you are venturing into a brick and mortar type business, meaning
a physical location that you are purchasing or renting, then you
will need to consider things like inventory, capital loans, employee
wages, equipment, utilities, licenses, permits, office supplies,
insurance, signs, lease or mortgage, etc.
Other Expenses: Remember, you don?t need all of this to get
started, but I figured it would be good for to you begin thinking
about the different cost aspects. Most people start their
businesses while still employed as I did so that they can fund their
startup costs comfortably:
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