Money Needed to Start a Small Business

by Pat Fontana

Overview

Starting a small business does not have to be an expensive venture, but there are certain costs involved that cannot be avoided. To ensure you are in compliance with local and state requirements, you will need to first register your business with the appropriate filings. There are also costs involved in running and promoting your business.
Licenses

You will need a business license from your city or county, as well as all of the appropriate permits and registrations. For each of these types of applications, there is a filing fee. If you incorporate your small business, the fee can be in the hundreds of dollars for filing the articles of corporation with your state.

Communications

You will need a business phone and a website with an email address. There is a charge for securing a website domain name as well as for the hosting service. You may also need the services of a Web designer to create your website.
Location

If you are operating a retail business or are not set up to run a business from your home, you will have to secure an appropriate site. There will be rental fees and utility bills to pay. Your business will probably also require signage in front of your store front or office site.
Marketing Materials

To promote your business effectively, you will need--at the very least--printed business cards. You may also need letterhead, envelopes and pre-printed invoices. Flyers, brochures and other printed material will involve a cost to print and possibly produce, if you hire an outside marketing consultant to create them for you.
Networking

Although networking is free, networking events and association memberships are not. There will be a charge for meetings, usually involving a meal, and for joining a business association such as your local chamber of commerce.