Introduction
On average, startup and first-year costs often fall between $30,000 and $40,000. However, it is possible to start a business with an initial investment of $0, $100, $1,000, all the way up to millions of dollars. The cost of starting a small business depends on the type and size of the business you’re opening and your industry.
Cost Breakdown
- Before you can launch your business, it’s important to understand the costs associated with starting a small business. Start-up costs refer to any money spent before the business is up and running, such as equipment purchases, legal fees, and office supplies.
- Common business startup costs to consider: Legal costs to register a business or incorporation costs. Even if you use an online service instead of hiring an attorney, you can expect some fees to file articles of incorporation. Moreover, if you include trademarks or patents, this expense grows further.
Industry-specific Costs
- According to most studies, the figure is approximately $30,000 for startup costs. However, start-up costs can vary widely based on industry and scale of business. Read on to learn the average cost of starting a business in your industry.
Startup Cost Calculation
- How to calculate startup costs: There are two main types of business startup costs: business assets and expenses. Startup costs can be defined as the assets business owners need to get started, and the projected expenses it will take to launch a business. Fixed costs are business costs that do not change as sales increase. Office Space (Recurring) is an example of a fixed cost.