How Much Does It Cost to Start Your Own Business?
If you want to start your own business, one of the first things you'll need to know is how much it will cost. But the problem is, not all businesses cost the same amount of money to start-up. If someone asked me how much does it cost, I really couldn't answer that without first knowing what type of business they plan to start and other factors like how big their company will be when it's first starting off.
But I'd give them a basic run-down of things they may or may not need for their business and the average costs for these things. So if you're wondering how much it will cost to build your own small or large business from scratch, here's a few prices and things that can give you a basic idea of what you're looking at.
The first thing you'll need to spend money on to get your company off the ground is property for rent or lease. You'll need a location to conduct business, unless if all your transactions happen to take place solely on the internet. You may even want to buy some property outright, but few business owners choose to do that.
The main reason why it's better to rent your business property or building instead of leasing or buying it is because you want to be able to pack up and move to a different area or city if business slows down or your company doesn't do as well as you thought it would. A property or building rental could cost as little as $500 per month to as much as over $1 million, depending on many factors.
For a small shop in a rural area, I would estimate the price to be between $700 per month to $1,500 per month. For the same sized shop in the heart of a big and busy city like New York, the monthly rent would probably be in the range of $1,500 to $3,500.
It's probably better for you to rent an existing building rather than rent land build a new building. Construction rates can vary greatly and the same goes for remodeling.
As mentioned already, some people prefer to run their businesses entirely on the internet. But even if you have a physical property, such as a rented building, you may still decide to have a website as well since it's an extra source of advertising and cheap to maintain.
If you choose to design your own website, then the site itself is free. But if you hire a designer to create a site for you, then the costs will generally range from $100 to $2,000. Once you have a fully designed website, you'll need a domain name and hosting.
A domain name shouldn't cost more than $10 per year and hosting will usually cost between $5 and $25 per month, depending on how much space your site needs and what types of activities and visitors it will be used for.
I'll estimate and say that about 99% of business websites shouldn't cost more than $10 per month. Only a rare few here and there need so much memory or extras to where they would have to pay more than that. For a basic 4 or 5 page website, your host shouldn't be charging more than $5 to $8 per month.
Equipment and Supplies
If you're running a physical business or plan to have an office or headquarters to handle all administrative functions, then you're probably going to need to buy equipment or supplies.
This is another one of those things that can vary too widely in costs, so I can't give you any price quotes, but make sure you write out a business plan and list all the things you think your business will need.
Then, you should shop around and if you need lots of equipment or supplies, especially on a regular basis, then you should try to start a contract deal between your company and a reliable supplier.
A person I once knew owned a coffee shop and purchased all the equipment in used condition, which cost him about $10,000. Some companies need millions of dollars worth of equipment, so make sure you write everything out and take your time when shopping for deals.
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