Your goal for 2021? Offering unique products and services, capturing a share of the marketplace, and becoming your own boss.
Yes — you’re going to be an entrepreneur. And according to research, you’re in good company: The world features more than 580 million entrepreneurs. In addition, the United States has nearly 32 million small businesses.
The reality is, there are many reasons to create your own company. But before you make the leap, it’s critical that you understand the cost required to start a business.
This begs the question: How much does it cost to start a business?
Here’s a rundown on everything you need to know about business startup expenses in 2021.
Let’s get started!
How Much Does It Cost to Start a Business?
As a general rule of thumb, starting a microbusiness in the United States costs about $3,000. A microbusiness is any company with small-scale operations. These types of businesses typically have two employees at the most.
That $3,000 may go toward the cost of creating a website or covering marketing expenses if you’re offering services online. In addition, your startup capital may be used to ship goods if your business offers products to the masses.
Keep in mind that in addition to having a few thousand dollars on hand, you should also have half a year’s worth of capital on hand to cover your fixed costs. This capital may help you to stay afloat as you work on building momentum for your business.
Additional Considerations
Even though $3,000 is a base startup cost amount, note that startup costs may be higher depending on the industry you’re operating in.
For instance, although $3,000 may work for a home-based business, it’s not nearly enough to run a restaurant. Buying into a restaurant franchise can easily cost you as much as $125,000.
Meanwhile, if you’re interested in starting your own retail shop, you can expect to pay more than $30,000. This cost includes expenses such as operating and rent costs, inventory, and information technology. It also factors in marketing and public relations expenses.
However, no matter what type of business you start, shopping around for the best deals on essential equipment and other resources can help you to minimize your costs. Sites like Price It Here make it easy for you to research and compare the costs of various business services and products.
How We Can Help
In addition to answering the question “How much does it cost to start a business,” we offer a wide range of tips and insights for anyone interested in honing their leadership skills.
For instance, through our site, you can learn about the seven habits associated with highly successful people. In addition, you can explore some of the most inspirational quotes from the world’s most impactful leaders.
Take a peek at our site to learn more about how to excel in business and leadership in the months and years ahead.
