Owning a small business may be one of your big dreams, but getting started can also be a bit of a tough (but definitely not impossible) process. It just takes creativity, dedication, a lot of research, and often, a hefty business loan. But which businesses need small business loans to match start up costs?
While it is a lot of work to get your business up and running, if you take it a day at a time, your goals for getting your start-up off the ground will be realized in no time. To help you out, here are some details on various starting costs for common small businesses including salons, restaurants, dental practices, physician practices, and hotels.
To start a salon, you will need approximately $10,000. This includes start-up costs products, marketing, inventory, furniture, and leasing for the first month. After the first month, costs will go down, and your main expense will be your lease, and how much you plan to pay your stylists. You can collect money by either renting a booth to your stylists, or you can hire them as staff, and take a cut of their earnings.
Click here for more information about start-up costs for Salons.
The costs of starting a restaurant can vary widely. As a general rule of thumb, if you are opening a franchise, you can expect to need $500,000 to get started. On the other hand, if you are opening a fine-dining restaurant, you can expect to double that price, as you will need closer $1 million before your doors open. Some restaurateurs have spent as little as $13,000 to start their business. Costs depend on the type of restaurant you will open, and how savvy you are at cutting costs.
If you’ve just graduated from dental school, and are looking to start your own practice, don’t get too excited about getting free of debt right away. To start a dental practice, it can cost nearly $450,000. The good news is dentists typically make a lot of money, so you’ll be able to pay off the dental practice business loan rather quickly.
Like recent dental school grads, medical school graduates aren’t unaccustomed to debt. However, the one difference is it is a lot less expensive to start a physician practice than it is a dental practice. To start a doctor’s office, it can cost anywhere from $70,000 – $100,000. Keep in mind you will also need to find appropriate insurance coverage, and you will need to factor in money for hiring competent staff. For more information on how much it costs to open up a physician practice, view our Medical Practice Business Loans page.
Hospitality is another great industry where you can make a lot of money. However, it is also one of the most expensive small businesses to get off the ground. In fact, it can cost millions of dollars in start-up costs, and the ongoing costs are complicated. Rather than stamping a flat rate on how much you will need, consult our Hotel Business Loans page for a better idea on how much you will need for the type of hotel you want to open.
These are just some of the basics of how much money you will need to apply for with your small business loan start a small business. For more guidance, please contact us at Shield Funding today!