Internet Marketing Business Start-Up Costs

Startup Costs: How Much Cash Will You Need?

The process isn’t simple. It requires time, dedication and money.

Do not fall trap to any advertising that says you can start up for free. This is not going to happen.

One reason most small businesses fail is that they simply run out of cash. Writing a business plan without basing your forecasts on reality often leads to an unfortunate, and often unnecessary, business failure.

Without the benefit of experience or actual historical financials, it’s easy to overestimate a new company’s revenue and underestimate costs.

That being said, you will need to estimate your start-up costs in 2 ways. First, the cost in dollars, and second, the cost of time/labor.

This is the reason here at IVD we are advocates of keeping your present source of income (job) until your cash flow from your on-line business begins to meet your financial needs.

According to the U.S. Small Business Administration, most home-based internet marketing businesses cost $2,000 to $5,000 to start.

They are talking about dollars, not time/labor.

So, they gave a ballpark figure, and it might be close, they never seem to explain what they base these numbers on.

The business related essentials that you will need are:

1) Internet Service Provider.

2) Website

3) Website Host

4) Ecommerce Platform

5) Email Service Provider

The above services, excluding the cost of building the website, will run $90.00 to $110.00 a month.

Expect to be spending $500.00 to $750.00 to build a basic 5page website, and you now have your actual start-up costs. And this is not including your labor expense.

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