You will be able to create a solid budget with the list below and determine how much money you will need to spend. If we add everything up right now, you can expect to pay as little as $2,000 and $25,000 if you go the high-end route.
Many people do not consider payroll when starting an online business. Simply put, you need to earn a living wage. Most recommend that you be financially stable before starting any kind of business. You should be able to pay at least one year's worth of bills with the money that you have saved up.
However, this is not always possible because saving money today has become extremely difficult. Therefore, estimate how much you will need to pay yourself from your new online business to survive.
Calculate how much money you will need per month. Examples include childcare costs, utility costs, rent or mortgage payments, taxes, insurance, vehicle payments, credit card payments, debt, entertainment costs, groceries, clothing, etc.
If you hire a team of people, you need to consider how much you will pay them. In fact, payroll is generally considered one of the largest startup costs for any business.
According to some studies, this can make up 25% and 50% of your total budget.
Hiring freelancers to work for you is a good option. You can expect to pay up to $0.25 per word for content or $25 to even $300 per hour for freelance designers. Web programming and web development could cost between $30 and $150 per hour.
We are talking about setting up an online business in your home. However, this doesn't mean that you don't need supplies. You'll need a desk, a chair, a laptop and maybe a printer. In addition, you're going to need a desktop with a monitor, so you can expect to spend up to $1,500.
A laptop will run up to $1,500, and a printer/scanner will cost around $200. Then, for software subscriptions, such as for Microsoft Excel and Microsoft Word, and a point of sale program subscription, you might pay between $100 and $300 per year.
Moreover, you can expect to spend about $100 per year on security programs that will keep data on your computer safe. Then, you will likely pay $200 to $300 for a good desk, between $50 and $200 for a good chair, and about $50 for a filing cabinet
Web Presence & Marketing + Social Media Accounts
Marketing your products or services is crucial. This means you need to develop a good web presence. This can be one of the highest costs incurred by a new online business in many cases.
In the beginning, you can go the DIY route. You can use your personal network by calling and contacting people you know and even using social media. However, you don't want to spam or annoy people, so this will only go so far. You will therefore want to engage in content marketing.
There are many different types of marketing you can use. As mentioned above, content creation is a big one. Refer to the rates for freelancers that we discussed above for average costs.
You can also hire social media influencers to post pieces that promote your business. For smaller influencers, expect to spend around $25 per post. However, for extremely popular influencers, you might pay several thousand dollars. However, social media, which is often free, is another option.
Another option would be to use something like Google ads, which can cost between $1 and $2 per click on the search network. Of course, using paid advertisements can vary significantly in terms of cost depending on who you are advertising with.