7 Expenses You Must Absolutely Consider When Starting a Small Business
You probably already know that you are going to need a considerable chunk of money to start your small business—but how much are you actually going to need? Whether you’re looking for investors or applying for a small business loan, you need to have a firm idea of what sort of things you’re going to need to pay for and how much those things are going to cost. When you know what you need, then you will know approximately how much seed money you need to get off the ground. Here are 7 of the most important expenses that almost all businesses need to get off the ground.
- A website – Whether your business is entirely online or not, you need a website—and you’ll need a professional website. If you don’t know how to find and buy a domain, build a website, and launch it, look into farming those tasks out to people who do know. Whatever you do, don’t just go without. Here is a quick resource that will help you get your domain name, blog, and website up and running in no time, and you can do it all yourself.
- Marketing – A marketing budget should be very near the top of your list. How much money you need to allocate towards marketing will depend on what platforms you plan on using or if you plan on hiring someone on the outside to do this task.
- Inventory – Unless you offer services, you want a stock of your inventory on hand for when the orders start rolling in. Even if you offer a product that is made by hand after someone places an order, you still want to have the materials ready so you don’t spend as much time acquiring materials as actually making your product. This will usually take a large chunk of your seed money.
- Administrative costs – Running a business takes time and money, especially if you are renting a space to run that business in. Packaging your products, postage, utilities, phones, desks—these things all cost money.
- Professional fees – If you want to set up your business the right way (with the right business licenses, etc.), many of those things cost money to obtain. To understand exactly how much a business costs to start, visit your state online business registration website (varies from state to state).
- Technology – If you don’t already have a computer or other device that will enable you to run your business from just about anywhere, you’re going to need to buy one. You may also have to pay for security.
- Wages – If you employ someone else, even just to answer the phone can keep your files in order, they are going to need to be paid. If you are an incorporated business, you will usually have to provide a range of benefits for those employees, too. And don’t forget to factor in wages for yourself. You might not be turning profit yet but you do still need to survive.
For more helpful small business tips, check back on our blog weekly!
- Business Loans for CoronaVirus Affected Small Businesses - March 21, 2020
- Top Business Resources for Women Veteran Owned Businesses - March 5, 2020
- Small Business Borrowing Success Stories - February 5, 2020