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How Much Does it Cost to Start a Online Business

Updated on March 13, 2012

Many individuals are turning online to try and earn an income. Many that are searching for jobs have come to find them scarce if available at all. The internet is one way people have heard to make a reasonable deal of money. However, to make money it is going to take money, at least a little to get started.

The reason many turn to online business is because they are the cheapest to start. They have the same risk as any business in regards to time and money that you spend investing in it. Although not as expensive you still need to weigh the cost and time investment to determine if it is worth it.

START-UP COSTS: Here are the basic cost associated with an online business you many need to consider before starting.

•Hosting Fees: A website needs a hosting provider. Many prominent providers provide a basic host for about 10.00 per month

Domain Registration: When purchasing a domain name there are a lot of available options. A .com registration is roughly 10 dollars a year while .info can be just a couple of dollars. They all add up quickly so make sure you get the names you want.

•Website Design: Website designs cost vary. If, you are skilled with designing a basic website with word press or other free software then go for it. If, you want a professional website with all the ins and outs it can run anywhere from 1500 to 5000 to be up and running.

•Inventory: If, you are selling a product are you keeping the inventory? If, you are using a drop shipping company you do not need to worry about inventory control.

•Office Supplies: Office supplies cost can vary, from reputable bookkeeping software to one creating invoices or receipts for your customers. Some prices can range from a couple of hundred to a few thousand depending on what you are trying to do.

ON-GOING COSTS: Once you have figured out your starting cost you are going to need to keep in mind the on gong expenses of keeping it running.

Once your open, there are other necessary costs involved to running your business.

•Website Maintenance: Website software requires regular updates and patches to security holes that are found, new features being added, among other things.

•Marketing: This is probable the biggest single expense to online marketing. You can do it for free there are many techniques to generate traffic without spending a dime in money only time. However, if you want consistent traffic the best way to do it is through regular advertising. So, it could be PPC, article marketing, banners or other forms but set aside at least 200-500 a month just to cover those fees.

Income Cushion: there is always a risk to starting a new business. Having a small economic cushion while you get things started is an excellent start. Have at least 3 months minimum, so you can devote all your effort in getting the business running. Six months or more is ideal, but it is different with everybody. No, matter what any advertiser tells you, making money online is never a get rich quick opportunity.

•Software Costs: There are many software packages out there that make your life a lot easier and cut down on the mundane tasks that can be automated. If, you can automate certain task then take the time to invest in the software to help you do it.

•Office Expenses: Although these are minimal, items such as printer ink, paper, etc. should be included.

•Accounting Services: all business pay taxes and yours will be no exception. So, plan to pay out yearly to have an account do your business expenses and taxes that you may owe form year to year.

This should give you the perfect starting point to know where you stand with getting your business online and ready to start selling. Your cost will vary from month to month and the more you do yourself the less you will spend.


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  • Kadmiels profile image

    Kadmiels 5 years ago from Florida

    your welcome

  • Kadmiels profile image

    Kadmiels 5 years ago from Florida

    Every busness needs a little start up capitol, online business is no exception. Thanks!

  • livingpah2004 profile image

    Milli 5 years ago from USA

    Yes, you are right people think that doing business online from home is free. Great information! Voted up!