How much does it cost nowadays to start an online business?

Depending on what business you plan on starting, the cost might range anywhere between $0 and millions of dollars. Some businesses need a physical structure, employees, supplies and more to start while others like an online business only need a domain name and website to start. Businesses range in size from small to large. Nowadays, many traditional businesses have a website; this is how they reach a bigger number of people and advertise their products and/or services.

This analysis is going to focus on the run down of the starting cost of a few small businesses to show that it takes less to start an online business.

After securing the right permit, the cost for starting each business depends on how big and fancy it is going to be.

Restaurant

Depending on whether you are starting your business from scratch or renovating an old one, your starting cost can range somewhere from $100,000 to $400,000. This money will go into the infrastructure, kitchen equipments, payroll, sold goods like food and drinks, dining room supplies like chairs and tables, bar supplies, plates, glasses and more.

Bar

Depending on the kind of bar you are interested in opening, the startup cost can range somewhere from $ 30,000 to $ 100,000+. Some bars offer just drinks while others offer entertainment and food. Sport bars for example offer entertainment and some menu options like pizza, sandwiches, and many finger foods.

This kind of bar spends a lot of money on technology, keeping up with the latest. There are usually many TVs placed such that each table has a good view to at least a TV running some type of sport channel.

Bakery

Depending on the location, size, theme and products, it can cost as high as $40,000 to start a bakery business. A lot of the cost will go into the physical structure, securing baking tools like ovens, baking pans, mixers and other necessities. Some of the money will be spent on labor and display tools (shelves, glass cases, stands and more).

 

Coffee shop      

Depending on the type of coffee shop, it can cost as low as $ 20,000 or as high as 500,000 with some franchises. The cost goes into supplies like brewers, cups, chairs, tables and other basic items. If you already have another business like a bakery or dinner, you can lower your start up cost considerably. Coffee shops that provide seating and drive through cost more to start than mobile coffee shops.

Salon

The startup cost of a salon varies widely depending on the type of salon you are starting. If your salon will be a rented section of a bigger business/salon, if might cost a lot less than if you own a whole salon from a popular franchise like ebony. The cost of salon equipments can be as high as $ 40,000. Supplies like perm products, hair sprays and more basic salon products can cost up to $ 30,000. So, your start up cost can be as high as $ 80,000 when you add the rent and payroll.

Boutique

The startup cost for a boutique depends on the location of the boutique and products sold. A clothing store for example can cost as low as $ 30, 000 to start and as high as millions of dollars. The inventory at a designer clothes store cost a lot more than those at a regular clothes store. Supplies like cloth racks, mannequins and other basic supplies can cost up to $ 30,000. Licenses, insurance, payroll and infrastructure also add to the cost.

Online business

Depending on the type of business you enroll in, it can cost anywhere between $0 to a few hundred dollars a month to start an online business. If you want to start a business as an affiliate marketer for example, you will need to enroll with a program that will enable you to buy a domain name, build your website and host your website.

Your domain name is like the address to your site. It looks something like “my domainname.com or .edu, .net, .org and many more dots. After you have a domain name, you need to build a site for that domain. Your site will serve as a place where you will display your business to the world. With the advances in technology, building a site only takes minutes and can be done for free with word press.

Sites don’t float on their own online, they need hosting. Site hosting platforms make sure your site is functioning well and is protected from malicious software and hackers.

You could decide to use word press on your own to build your site but it is easier to go through a program that already has word press properly downloaded and ready for use. There are many programs online that can help you build a website, buy a domain name and host your website for a monthly price ranging somewhere between $0 to a few hundred dollars a month.

Some of these websites can help you achieve one or two of these projects but wealthy affiliate can help you to get a domain name, build up to two websites and host them for free as a starter member. Many people start for free and as they start growing they upgrade to the premium membership. The premium membership cost $ 47 a month. With this membership, you can build up to 50 websites which will be hosted and protected from scammers and malicious software. But that is not all, you get lessons and tutorials on how to build a successful business online.

Affiliate marketing is not the only kind of business you can learn at wealthy affiliate. There is also network marketing, email marketing and more.

What if I want to run both an onsite business and an online business?

Many onsite businesses today have a website where they display their products. Websites help businesses reach a broader market than could have been possible with an onsite business.

Let’s say for example that you are a very crafty person; you make all this unique crafts and sell them at a local store. You will like to make a living making crafts but you don’t have enough customers at the local stores. Now you can create a website where you write and publish content about your crafts.

You can also display your crafts on your site and share your content on all the major social media. You can even advertise with the major search engines to bring more awareness about your product. Doing all this will increase the number of people willing to buy your crafts and before you know it you will be living full time from the income you generate selling your crafts.

In conclusion

It is a lot cheaper to start an online business than it is to start an onsite business. With online business, you can take you office with you where ever you go. There are millions of people online everyday; you can take advantage of this to run a successful online business at a relatively lower starting cost.