You’ve got an amazing idea for a business! All you need to get started is some equipment, employees, a building to rent, a business license, and insurance. Okay, you need a lot of stuff.
To get the stuff, you’re going to need money that you don’t have. This is the case for most start-ups. There’s not a lot of people who can pull thousands of dollars out of their pocket without a little help.
How much money does it cost to start a business? You’ll need to have the answer to this question before you start shopping around for company essentials. Keep reading to learn more.
You can’t arrange business capital until you know what to ask the bank for. The first thing you’ve got to take into account is your structure.
The most common structures are LLC, proprietorship, corporation, and partnership. Each one comes with a filing fee and an annual cost that you have to take into consideration. Expect to spend about 700 dollars or more.
Most states require you to have some kind of worker’s compensation insurance. It will cover your employee’s medical bills in the event they are injured while on the job.
Liability insurance should also be a part of your business startup fees. It will protect you if an employee or customer tries to sue you for damages. After all is said and done, you’ll dish out over 2000 dollars for this expense.
Renting Your Building
How much you spend on renting a building when starting a business all depends on what kind of company you want to be. If you’re going to be primarily selling things online, for example, you won’t have to put aside money for this expense at all.
If you’re going the brick and mortar route, you’ll probably dump ten percent of your overall revenue into your rent. The price doesn’t stop with having your building secured.
You’ll also spend thousands of dollars in furniture and maintenance costs.
Creating a business that’s successful is difficult if you don’t have employees to help you run the place. Since people like getting paid, you’ll need to factor labor into your costs.
On top of their salary, you’ll also have to account for benefits and employment taxes.
No business is complete without the right equipment. Your expenses will look a little different depending on what kind of business you’re running.
If you don’t have enough money to buy expensive machinery outright, you might be able to save some money by leasing it.
How Much Money Does It Cost to Start a Business and Get Your Doors Open?
Do you have a great idea for a business? Chances are, you’re not going to have enough cash to buy the things you need outright. How much money does it cost to start a business?
We’ve given you some basic numbers, but the truth is, prices fluctuate. The answer is going to be a little different for everyone.
Once you’ve gotten all the expenses out of the way, it’s time to start running your company. Check out the Business section of our blog for advice on how to get started.