What Is The Cost Of Starting An Online Business?

What Is The Cost Of Starting An Online Business?

Hi how’s it going?

The other day I came across this post by Angela Banks from Xpand Empire and thought I should share it. note I have hadded my comment in a lighter colour

budget-picture

How much does it cost to start an online business?

Excellent question! There are many financial variables when you are starting your own online business. So here is what I am going to do. I am going to list all of the costs that I encountered when I started up a social media online business. Keep in mind these costs are in AUSTRALIAN DOLLARS. (That is because Angela lives in Australia)

Marketing & Advertising

– Six Figure Mentor Membership Sign Up $200
– Six Figure Mentor Monthly Membership $97
– Advertising $$$

I invested in my personal development in online marketing by joining SFM (Six Figure Mentors). They taught me the basics of online marketing – which is crucial to building a successful online business! If you are interested in learning more about online marketing, click on the banner below to get your FREE online marketing report…this helped me heaps! They have help me with my business as well

My Banner

For me personally, my advertising amount varies. I like to go with the 80/20 rule. Keep 80% of your profits and invest the remaining 20% into advertising your business. This is a good rule to constinually grow and expand your online business!

Legal

– Terms & Conditions $300
– Company & Trust Set Up $1800
– ABN $44
– Legal Advice $500
– Trademark Application $1200

Now if you are a sole trader, you will not need a Company and Trust Set Up. The trademark application is also optional. You will keep your costs down by being a sole trader however I recommend you get legal advice to determine what is the best business structure for you. I also like to get legal advice on any of my online business projects so I can manage any potential risks. For me I already had a trust set up

Finance

– Online Accounting System (per month) $49(NZ I use bank link $25)
– Accounting fees for preparing a yearly company tax return $800

Again if you are a sole trader, and not a company, you wont have to worry about the cost of preparing a company tax return. I personally liked XERO for managing my online accounting system…fantastic and easy to use!

Website

– Yearly hosting $89.88
– Comprehensive Website Development (including logo & social media design) $1400. I got my logo and graphic done on fiverr.com and put it together myself but that takes time. Cost $40
– Internet per month $50
– Domain name purchase per year (.com) $9.99 (.co.nz) $20/yr
– Domain name purchase per 2 years (.com.au) $20
– Tablet & Smart phone design for website compatibility $750

I have my websites hosted through GoDaddy.com simply because they are reliable and they have competitive prices!

General

– Business Cards $60

I had my business cards done through Vista Pring. Some other expenses you may need to consider is purchasing a lap top, portable hard drives (for backing up your documents), printer, anti virus software, etc.

ONGOING EXPENSES

Although the initial outlay of money can be a lot when starting your online business, the maintenance is very cost effective once you are up and running. Ongoing expenses include:

– Any memberships/subscriptions for personal learning & development
– Advertising
– Online Accounting System
– Accounting fees for preparing tax returns
– Yearly hosting
– Internet per month
– Domain purchases

Hope this blog helped you in managing your online business budget effectively!

Cheers

Ange

Thanks Angela

xpand empire

If you need tips on the legaland accounting side of your online business Xpand Empire is  not a professional legal or finance body but can certainly share their experiences in these fields with other people. I also have contacts from a legal firm in Brisbane that can offer my followers/clients excellent discounts in legal services to help the little guys out!

Have a n awesome day

Robbie

What Is The Cost Of Starting An Online Business?