Having a business idea is great! You’ve got an inkling of a worthy product that’ll take the market by storm, and you’re ready to put a business plan into action – it’s one of the best feelings in life. However, the cost of trying to turn your dream into a reality may be a little too dramatic for you right now.
After all, the market changes and new businesses carve into it. When you weigh up all the factors, that can leave you with an overstretched budget and not much to show for it! And that’s why this post is here.
If you’re aware of roughly how much you’ll pay to get into the business world, you’ll be far better prepared.
The Cost Of Opening A Company
Opening a company is the first step in becoming a business owner, naturally. But the costs associated with doing this are often misrepresented. Even just filing to register company name will cost you! This cost may different depending on the kind of company you’re setting up, but the point remains the same.
You’ll also have to decide on your share amounts, shareholders and the liability involved in potentially needing to pay them off. Along the line this can be costly, so it’s best to try and minimise share values in your early days. You’ll then need to think about admin costs, such as internet service and/or phone lines. All in all, you could be looking at an opening cost of at least £100 or more.
The Price Of Running A Website
Companies that operate online, and companies that operate both online and in person, will both need to open up a website. Now, a ‘website’ can count for as little as just your Facebook or Instagram page, which should cost you nothing to set up. But for longevity, you’ll need a website of your own.
For a subscription based website, the cost can be as low as £10. But for a professionally made, entirely customised website, you can be looking at costs of over £200 to get started. On top of that, you’ll need to carry out regular maintenance, which could cost at least £50 a month ongoing.
Do You Need Physical Premises?
If you’re online only, not necessarily. You can work from home and register your home address as your business address. However, if you want to set up a brick and mortar store, or you want to run your own office, this is another big cost you’ll have to factor in early.
You’ll need office equipment, such as desks and chairs, computers and printers, and even servers and various other IT infrastructure. You’ll also need to account for the cost of keeping the lights on, as well as how much the premises will be to heat every month. Scout out some potential locations early on and get the lowdown on their average rent and utility.
A business idea is priceless in theory, but it’ll soon cost you!