The Cost of Starting A Business – Let’s Be Serious Here
OK; it’s time to be serious. You see many, many ads – and even articles – stating that you can start a business for less than $100. Some say $500. Some are generous with their statement and say under $1,000. I really wish people would stop saying this – or at least tell the whole story. It’s time to be serious about what it costs to start a business. It is a lot more than $1,000.
We receive many inquiries from people wanting to start a home inventory business and are surprised when they find out that our business package requires quite a bit more of an investment than they expected. They are under the assumption that it will cost them only around $500. Now, to be fair, you can start a business for $500. But start is different than create, establish, grow, etc. Just to get started, you’ll need to register your company name with the state (this can be less than $100 or as high as hundreds of dollars). Your immediate needs will be to buy supplies, business cards, equipment, and insurance. You are now already at that $500 mark – most likely over it. After this money is gone, many don’t have any more to put into networking, advertising, brochures, a website, etc.
What about network marketing? That can be started for less than $500, right? Often you hear that you can enroll in an MLM for less than $200. This is true. MLMs are a great business model, but there is still a continuing cost involved. Some require you to pay for your business cards, website, and training. All (as far as I know) require that you use/purchase their product on a monthly basis to prove you are in business. Some call this “qualified” and others call it “active membership.” No matter what the term is, it means you must purchase product to receive revenue. Rightly so, the premise is that if you don’t use the product, how can you sell or represent it properly? This can easily total more than a a couple hundred dollars a month.
I’m not trying to discourage you. the point of this post is to stress the difference of starting a business and being in business. After all, why start one if you can’t do more than just start it? In addition to the cost of networking, marketing materials, websites, advertising, equipment (computer and printer at minimum), licenses, certifications, and continually replenishing your office supplies, most successful business owners state you need a business coach. There are more expenses to consider, but you get the message – the cost is much higher than $500 or even $1000 to start and keep your company running. Added to the expenses, if you don’t have a quick start-up, you also will face months and months of little or no revenue.
Starting a business isn’t easy. If it’s your passion, you will find a way. Just know that it will cost more than just $500!