Have you been thinking about going into business for yourself? Now’s a great time to start your own business, because the COVID pandemic has opened up many opportunities to run their own enterprises.
What some people don’t realize is that it takes money to make money. So how much does it cost to start a business, and what can you expect to invest in funding a business?
Don’t let the upfront costs of starting a business scare you. Check out our quick guide to what you’ll need to pay to get your company going.
How Much Does it Cost to Start a Business?
Guess what. There’s no set answer to this question!
Startup expenses are as varied as startup ideas. The exact amount you’ll need to get your business operating will depend on your line of work.
Keep in mind that you’ll need to pay for a general business license, tax ID, plus specific permits for things like hair cutting or serving food.
On the other hand, if you’re running a simple online craft store or service-based business like lawn care or general delivery services, your paperwork costs could be much lower.
Also, it’s smart to hire a lawyer and accountant to avoid making costly mistakes. So don’t skip this step unless you are sure you know what you’re doing, and figure the cost into your budget.
Can I Start a Business Without Borrowing Funds?
You’ve probably heard about start-up business loans. But what if you want to know how to start a business without going into debt? It’s possible, but may not always be the best route to take.
If you want to get your business going right away, not borrowing can be really inconvenient. It means you’ll have to wait until you either win the lottery or save up for your startup costs.
Still, some business owners want to avoid getting into debt and would rather wait and save up versus borrowing. And that’s totally fine.
But if you don’t want to wait, you could start on a small scale and grow a business gradually, by introducing products and services over time.
Finding Funding for Your Situation
Fortunately, over the years people have realized that business funding needs to be available to everyone. So today there are many programs that offer friendly startup loans and grants, both government-based and private.
If you are a veteran looking into starting a business, for example, check into business loans for veterans. They often come with low interest rates and flexible payment arrangements.
Even if you’re not a veteran, there may be other programs like this that will help you find the funding you need. To learn more, check out your local SBA chapter for tips and advice.
It All Depends on You!
So how much does it cost to start a business? It really all depends on you, how resourceful you are in finding funding, and the kinds of licenses and legal paperwork you’ll need to complete.
If you are exceptionally creative and have a smart business strategy, you may be able to avoid getting into debt, period!
For more tips and advice on finance, business, and more, check out the rest of our blog!