by Brandon Boushy
More people are thinking about starting a business than ever before. In fact, nearly 5.4 million businesses were started in 2021, so how much does it cost to start a business?
The answer is different for every business, but many small business owners spend less than $5,000 on startup costs. We’ve talked to a ton of small business owners about how to start a business and we’re going to share what we’ve learned from them.
We’ll break down the business startup costs into upfront costs, one-time costs, and recurring expenses for each type of business. Let’s look at how we classified each type of cost.
Typical business startup costs
We’ve broken down the startup costs into fixed costs and variable costs. We’ll discuss each below.
Fixed Costs
Fixed costs are business costs that do not change as sales increase. The following items are common startup costs that are fixed costs:
- Office Space (Recurring): This includes both rent and utilities. Most small business owners start with home office space and deduct the percentage of space from their taxes as a small business cost.
- Legal Fees (Upfront): These are recurring costs that you have to pay to run a business legally, which usually include business formation, business licensing, and other professional fees to comply with regulations.
- Software Costs (Upfront and Ongoing): These business startup costs include payment processors, websites, CRM, accounting software, and more. You can find some that would be one-time costs, but most are recurring charges.
- Equipment Costs (Upfront): This includes machinery, vehicles, and other costs to meet the mission critical aspects of the business.
- Insurance Costs (Upfront and Ongoing): If your business requires insurance, make sure to keep it continuous. If it doesn’t, you may want to consider it anyway.
As time goes on, some businesses may find that a few fixed costs only remain fixed up to a certain volume. After that, they might see a drastic increase to add more volume and then it will become a fixed cost again. Adding a second service truck is one of the typical costs that work like this.
The other type of small business startup costs are variable costs, which we’ll discuss next.
Variable Costs
There are business costs that vary based on the volume the business does. These startup costs are called variable costs. Common startup costs in this category include:
- Shipping Costs (Variable Expense): Shipping costs are included in variable costs because you only pay for them if you order materials or ship products to a customer.
- Marketing Costs (Ongoing Costs): The Small Business Administration suggests spending approximately 8% of desired revenue on marketing. The advertising costs seem to be one of the defining factors as to whether a business succeeds long term.
- Material Costs (Varies): The time and materials that go into offering a product or service will affect your revenue.
- Supplies and Packaging Costs: Items you use for running the business must be considered early in the game. This startup cost may include computers, cleaning supplies, business cards, packaging for products, and other items that help your business.
- Wages: Most wages will vary with the amount of business you have. You have to pay employees for their time regardless, but you’ll schedule less hours when you have less business.
- Unexpected Costs: You should always leave a little wiggle room for unforeseen events. I’d suggest at least a 10% slush fund for unexpected startup costs and operating costs.
- Other Costs: This is a catch all for spending you can forecast, but are not sure which cost categories to include them in.
Now that you know the costs we’ll be analyzing, let’s look at the average start-up costs for businesses.
How much does it cost to start a business?
I broke down the average costs of starting a business into four different classifications:
- Low Cost: start a business with a shoestring budget and figure out the ongoing expenses along the way.
- Average Cost: start a business with the money to cover the first year of organizational expenses.
- High Cost: business owners interested in the startup costs to guarantee they stay in business for five years.
- Franchise: business owners who want to buy a franchise.
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Store Location with 5 Years Expenses) | Franchise | |
|---|---|---|---|---|
| Office | $0.00 | $1,800.00 | $30,000.00 | $21,600.00 |
| Legal Fee | $500.00 | $2,000.00 | $10,000.00 | $3,500.00 |
| Software | $200.00 | $1,000.00 | $135,000.00 | $1,000.00 |
| Equipment | $300.00 | $3,000.00 | $125,000.00 | $4,800.00 |
| Insurance | $0.00 | $1,200.00 | $25,000.00 | $5,400.00 |
| Shipping | $2.99/item | $6.99/item | $500/item | $6.99/item |
| Marketing | $0.00 | $24,000.00 | $1,440,000.00 | $24,000.00 |
| Material | $0.00 | $10,000.00 | $50,000.00 | $10,000.00 |
| Supplies | $300.00 | $2,000.00 | $10,000.00 | $1,500.00 |
| Wages | $0.00 | $0.00 | $200,000.00 | $0.00 |
| Unexpected | $300.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Other | $0.00 | $2,000.00 | $10,000.00 | $89,950.00 |
| Total | $1,600.00 | $48,000.00 | $2,040,000.00 | $162,750.00 |
How much does it cost to start a small business?
According to the Small Business Administration, one out of every four businesses start with less than $5,000, and over half of small businesses have startup costs of under $25,000. But the median is just over $24,000, and the weighted average would be between $72,000 and $276,000.
| Small Business Start Up Cost Analysis | ||||||
| Low | High | Midpoint | Percent | Low Weighted Average | Midpoint Weighted Average | High Weighted Average |
| $0.00 | $4,999.00 | $2,499.50 | 24.10% | $0.00 | $602.38 | $1,204.76 |
| $5,000.00 | $9,999.00 | $7,499.50 | 11.70% | $585.00 | $877.44 | $1,169.88 |
| $10,000.00 | $24,999.00 | $17,499.50 | 15.10% | $1,510.00 | $2,642.42 | $3,774.85 |
| $25,000.00 | $49,999.00 | $37,499.50 | 12.00% | $3,000.00 | $4,499.94 | $5,999.88 |
| $50,000.00 | $99,999.00 | $74,999.50 | 12.80% | $6,400.00 | $9,599.94 | $12,799.87 |
| $100,000.00 | $249,999.00 | $174,999.50 | 12.80% | $12,800.00 | $22,399.94 | $31,999.87 |
| $250,000.00 | $999,999.00 | $624,999.50 | 8.90% | $22,250.00 | $55,624.96 | $88,999.91 |
| $1,000,000 | $5,000,000.00 | $1,000,000.00 | 2.60% | $26,000 | $26,000.00 | $130,000.00 |
| Source: ABS | Total | $72,545.00 | $122,247.01 | $275,949.03 | ||
How much does it cost to start an online business?
Online businesses are normally some of the lowest in cost to start. You can start most of them for under $1,000 without any educational expenses.They require a computer, internet, business licensing, and some software. Businesses in this category might include:
- E-commerce stores
- Graphic design
- Blogging
- YouTube content creators
- Virtual assistants
- Marketing agencies
- Software developers
- And more
When people ask “how much does it cost to start a business online?” search results will normally provide answers about ecommerce stores. We’ll discuss those next.
How much does it cost to start a t-shirt business?
T-shirt companies are fairly easy to start. For example, you can start with a $30 Shopify, some design software, and a print-on-demand provider. If you really want to make money on it, you have to get good at SEO and marketing, which will increase your costs.
| T-Shirt Business Startup for Revenue of $350,000 per Year | |||
| Low (Just Startup) | Average (1 Year Cost) | High (5 Years) | |
| Office (Homebased) | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $1,000.00 | $5,000.00 |
| Software | $50.00 | $6,000.00 | $30,000.00 |
| Equipment (Print-on-Demand (POD) + Dropshipping) | $0.00 | $0.00 | $0.00 |
| Insurance (Optional) | $0.00 | $1,000 | $5,000.00 |
| Shipping | $5.99/item | $59,900.00 | $299,500.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $20.00 | $200,000.00 | $1,000,000.00 |
| Supplies (Optional) | $0.00 | $0.00 | $0.00 |
| Wages (POD built into material costs) | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $1,000.00 | $5,000.00 |
| Total | $70.00 | $292,900.00 | $1,464,500.00 |
| Content | Throwback NW | Urbanity | Big Frog |
Check out our interview with the owner of Urbanity to learn more:
How much does it cost to start a landscaping business?
We’ve interviewed multiple business owners who have started landscaping companies. It’s one of the easiest types of businesses to start. You can even start a business for as little as $300.
The table below shows the breakdown of the business expenses a small business owner should expect when starting a landscaping business.
| Landscaping Startup Costs | ||||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Store Location with 5 Years Expenses) | Franchise | |
| Office Space | $0.00 | $1,800.00 | $9,000.00 | $0.00 |
| Legal Fee | $0.00 | $2,000.00 | $10,000.00 | $3,500.00 |
| Software | $0.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Equipment | $300.00 | $25,400.00 | $127,000.00 | $4,800.00 |
| Insurance | $0.00 | $1,800.00 | $9,000.00 | $5,400.00 |
| Shipping | $0.00 | $0.00 | ||
| Marketing Costs | $0.00 | $24,000.00 | $120,000.00 | $24,000.00 |
| Material | $0.00 | $10,000.00 | $50,000.00 | $10,000.00 |
| Supplies | $0.00 | $4,000.00 | $20,000.00 | $1,500.00 |
| Wages | $0.00 | $60,000.00 | $300,000.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Other | $0.00 | $15,000.00 | $75,000.00 | $15,000.00 |
| Total | $300.00 | $146,000.00 | $730,000.00 | $66,200.00 |
| YouTube Video | Plan-It Vision | Augusta Lawn Care Franchise | Augusta Lawn Care | |
Check out our most recent YouTube video with a small business owner who started Plan-It Vision with only $300:
How much does it cost to start an eyelash business?
An eyelash business is one of the most commonly searched small businesses. To get started, you may need to go to cosmetology school. Many states require school, but some do not. If you haven’t already gone to cosmetology school, starting a small business will cost more than $20,000.
Most eyelash small businesses run as a combination of brick and mortar business and traveling to their client’s location. We’ve provided you with estimates of how much to expect startup expenses to cost based on the assumption you haven’t already gone to cosmetology school.
| Eyelash Business Startup Costs | ||||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Store Location with 5 Years Expenses) | Franchise | |
| Office | $0.00 | $7,800.00 | $39,000.00 | $100,000.00 |
| Legal Fee | $2,000.00 | $2,000.00 | $10,000.00 | $3,500.00 |
| Software | $0.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Equipment | $300.00 | $300.00 | $1,500.00 | $300.00 |
| Insurance | $1,200.00 | $1,200.00 | $6,000.00 | $1,200.00 |
| Shipping | $0.00 | $0.00 | $0.00 | |
| Marketing | $0.00 | $24,000.00 | $120,000.00 | $24,000.00 |
| Material | $50.00 | $8,000.00 | $40,000.00 | $8,000.00 |
| Supplies | $0.00 | $4,000.00 | $20,000.00 | $4,000.00 |
| Wages (assuming no employees) | $0.00 | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $0.00 | $0.00 | $0.00 |
| Other | $20,000.00 | $30,000.00 | $70,000.00 | $55,000.00 |
| Total | $23,550.00 | $78,300.00 | $311,500.00 | $197,000.00 |
| Schools and Franchise Opportunity | Cosmetology School | Lash Bar Franchise | ||
Subtract $20,000 from any of these numbers if you have already gone to school. I included legal fees and insurance costs in the low cost startup funding because you don’t want your new business to be slapped with a major fine for operating illegally.
How much does it cost to start a cleaning business?
Cleaning businesses are great for startups. You can even start your own business for as low as $300 if you just buy the cleaning supplies. Almost all the costs are variable expenses.
However, you should get the business license and the insurance as soon as possible if you decide to get them after you get started. The ultra low cost way assumes you rent any equipment after booking a job that needs equipment.
| Cleaning Business Startup Costs | |||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Chris Now) | |
| Office | $0.00 | $3,000.00 | $9,000.00 |
| Legal Fee | $0.00 | $2,000.00 | $13,200.00 |
| Software | $0.00 | $2,400.00 | $12,000.00 |
| Equipment | $0.00 | $4,000.00 | $20,000.00 |
| Insurance | $0.00 | $1,200.00 | $112,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $700.00 | $24,000.00 | $50,550.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $300.00 | $15,600.00 | $56,544.00 |
| Wages | $0.00 | $0.00 | $565,448.00 |
| Unexpected | $0.00 | $10,000.00 | $10,000.00 |
| Other | $0.00 | $0.00 | $132,000.00 |
| Total | $1,000.00 | $62,200.00 | $980,742.00 |
| YouTube Videos | Spruce Clean | South Sound Janitorial | Queen Bee Cleaning Service |
Check out our interview with Christopher Mondragon below or sign up for our cleaning business course that covers pricing, business credit, Chris’s marketing scripts, and automation templates:
How much does it cost to start a jewelry business?
Many people enjoy doing arts and crafts like making jewelry. You can start a business out of this fun hobby for less than $100 and build your business as you grow. Premade findings are typically more economical, but creativity is often the joy of this type of business owner, so you might want to make your own pieces.
If you are trying to make gold and silver jewelry, you can expect the cost to be much higher. A troy ounce of gold varies based on market conditions, but has been between $1,000 and $2,000 over the last 15 years. It will only make about five to 16 rings, and you still have to have the tools to melt it.
How much does it cost to start a storage unit business?
The answer to this isn’t particularly clear cut. If you are wanting to buy storage units that are selling people’s stuff to recoup the costs, you should plan to bring at least $500 to the auction. Then, hope you find a gem and recoup your investment.
If you are talking about building storage units and renting them out, you’ll need to:
- Buy land (acres range from $1,600 to millions, with an average of $12K over the continental U.S.
- Build storage space for $25 to $45 per square foot.
- Run the property for $2 to $4 per square foot of operating expenses.
Check out Love to Know’s blog for more detailed information.
How much does it cost to start a food truck business?
You might be able to start a food truck for as low as $10K, but I’d expect to spend more like $20K to get started. You’ll probably need around $156K to make it through the first year and around $670,000 to make it through the first five years.
If you figure out a winning recipe, it can lead to a million dollar business, though.
| Food Truck Business Startup Costs | |||
| Low (Just Get Started) | Average (Full Year Costs) | High (5 Years) | |
| Space | $0.00 | $0.00 | $0.00 |
| Legal Fee | $2,000.00 | $6,000.00 | $30,000.00 |
| Software | $0.00 | $2,400.00 | $12,000.00 |
| Equipment | $8,700.00 | $27,200.00 | $27,200.00 |
| Insurance | $2,000.00 | $24,000.00 | $120,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $3,000.00 | $36,000.00 | $180,000.00 |
| Material | $1,000.00 | $12,000.00 | $60,000.00 |
| Supplies | $2,000.00 | $24,000.00 | $120,000.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $0.00 | $0.00 |
| Other | $2,000.00 | $24,000.00 | $120,000.00 |
| Total | $20,700.00 | $155,600.00 | $669,200.00 |
| Content | Food Truck Blog | Vet Chef | Abyla Grill |
Check out our video below to find out how Saied Samaiel makes more than $600K per year with his food truck:
How much does it cost to start a dropshipping business?
The cost of starting a dropshipping business can vary dramatically because you may have to design a product and purchase inventory. If you are using print-on-demand with dropshipping, it is often fairly cheap.
Expect to spend at least $80 getting started, but if you are sourcing materials and manufacturing, it could be more than $30,000 to make your products. Through the course of a year, you might spend up to $180,000.
| Dropshipping Business Startup Costs | |||
| Low (Just Startup for Print-on-Demand) | Average (Design a custom product, manufacture it, and sell for a year.) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $2,000.00 | $10,000.00 |
| Software | $50.00 | $2,400.00 | $12,000.00 |
| Equipment | $0.00 | $0.00 | $0.00 |
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $5.99 | $6,000.00 | $30,000.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $20.00 | $140,000.00 | $700,000.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $1,000.00 | $5,000.00 |
| Total | $75.99 | $177,600.00 | $888,000.00 |
| Content | Shed Defender Blog | Shed Defender YouTube | Beard Head |
Check out our interview with Casey about how he created and dropships Shed Defender:
How much does it cost to start a candle business?
You can start a candle business for less than $200. The materials and a Shopify account are all you need to get started. The numbers below are from our interview with Jazmin who started the company in 2020 and is making more than $150K per year.
| Candle Business Startup Costs | |||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $2,000.00 | $10,000.00 |
| Software | $30.00 | $1,000.00 | $5,000.00 |
| Equipment | $0.00 | ||
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $0.00 | $24,000.00 | $120,000.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $10,000.00 | $50,000.00 | |
| Supplies | $80.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $6,000.00 | $30,000.00 |
| Other | $0.00 | $0.00 | |
| Total | $110.00 | $68,200.00 | $341,000.00 |
| Content | BLK Sunflower Blog | BLK Sunflower YouTube | BLK Sunflower |
Check out our interview below:
How much does it cost to start a towing business?
A towing business can be started for under $10,000. It has special licensing requirements that raise the cost and most people don’t own a tow truck. You can typically make around $100,000 per truck––if you do it right.
| Towing Business Startup Costs | |||
| Low (Just Startup) | Average (3 Trucks) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $2,000.00 | $3,500.00 | $17,500.00 |
| Software | $300.00 | $3,600.00 | $18,000.00 |
| Equipment | $6,000.00 | $25,000.00 | $125,000.00 |
| Insurance | $1,000.00 | $12,000.00 | $60,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $109,500.00 | $547,500.00 |
| Unexpected | $0.00 | $6,000.00 | $30,000.00 |
| Other | $100.00 | $10,000.00 | $50,000.00 |
| Total | $9,400.00 | $193,600.00 | $968,000.00 |
| Content | K.O. Towing Blog | K.O. Towing YouTube | Sant Lines LLC Podcast |
Check out our interview with a towing company business owner to learn more:
How much does it cost to start a painting business?
You should expect to spend $5,000+ to start a painting business because you’ll need a contractor’s license in most states to start a painting business. Contractors’ licenses have financial requirements that make them more expensive. States may require:
- Background checks
- Surety bonds
- Multiple years of experience
- Licensing exams
| Painting Business Startup Costs | |||
| Low (Just Startup) | Average (1 Year Cost) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $4,000.00 | $4,000.00 | $20,000.00 |
| Software | $100.00 | $6,000.00 | $30,000.00 |
| Equipment | $300.00 | $5,000.00 | $25,000.00 |
| Insurance | $1,000.00 | $2,000.00 | $10,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $100.00 | $10,000.00 | $50,000.00 |
| Supplies | $100.00 | $500.00 | $2,500.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $0.00 | $0.00 |
| Total | $5,600.00 | $52,500.00 | $262,500.00 |
How much does it cost to start a detailing business?
You can start a mobile detailing business for as little as $300, but you should probably expect the annual costs to approach $53K to really grow. That includes licensing, insurance, a vehicle, upgrading your website, and spending $2K per month on marketing. Check out the breakdown below:
| Detailing Business Startup Costs | |||
| Low (Mobile with Car to Get Started) | Average (Mobile, Vehicle Purchase and 1 Year Expenses) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $1,200.00 | $6,000.00 |
| Software | $0.00 | $5,000.00 | $25,000.00 |
| Equipment | $200.00 | $6,000.00 | $30,000.00 |
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $100.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $5,000.00 | $25,000.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $10,000.00 | $50,000.00 |
| Total | $300.00 | $53,400.00 | $267,000.00 |
| Content | Attention 2 Detail Blog | Attention 2 Detail YouTube | Slide In Mobile Detailing |
How much does it cost to start a trucking business?
Trucking businesses will normally cost around $10,000 to start in-state or $20,000 for interstate operations, but you can expect to spend $100K to $250K per year to run a trucking business.
Make sure the truck you buy is less than 10 years old because most companies require a newer vehicle when hiring you to haul their products.
| Trucking Business Startup Costs, Making $10K per Week | |||
| Low (Just Startup) | Average (1 Truck, 1 Year) | High (1 Truck, 5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $3,000.00 | $3,500.00 | $17,500.00 |
| Software | $300.00 | $3,600.00 | $18,000.00 |
| Equipment | $6,000.00 | $41,500.00 | $41,500.00 |
| Insurance | $4,500.00 | $20,000.00 | $100,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | |
| Unexpected | $0.00 | $6,000.00 | $30,000.00 |
| Other | $5,000.00 | $250,000.00 | $1,250,000.00 |
| Total | $18,800.00 | $348,600.00 | $1,577,000.00 |
| Content | Attention 2 Detail | K.O. Towing YouTube | Sant Lines LLC podcast |
Check out our interview with Mikael Sant. He averages $75K a month running Sant Lines LLC:
How much does it cost to start a taxi business?
Taxis are a dying business in most places. The business structure is antiquated. You have to register with your city’s transit authority, hire dispatch, and buy a bunch of taxis. We’ve provided an estimate for starting with five taxis running 24 hours a day.
If you already have a car, you can start driving for Uber or Lyft. All you have to do is get a business license, pass a background check, and have a current car inspection. You can run a successful business fairly easily. The startup costs for this kind of business is around $300.
| Taxi Business Startup Costs | |||
| Low (Lyft or Uber) | Average (Taxi with Dispatch and 5 Vehicles) | High (Taxi, 5 Years) | |
| Space | $0.00 | $700,000.00 | $875,000.00 |
| Legal Fee | $300.00 | $4,500.00 | $22,500.00 |
| Software | $0.00 | $3,000.00 | $15,000.00 |
| Equipment | $0.00 | $45,000.00 | $225,000.00 |
| Insurance | $0.00 | $40,000.00 | $200,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | |
| Wages | $0.00 | $438,000.00 | $2,190,000.00 |
| Unexpected | $0.00 | $20,000.00 | $100,000.00 |
| Other | $50.00 | $116,343.75 | $581,718.75 |
| Total | $350.00 | $1,390,843.75 | $4,329,218.75 |
How much does it cost to start a laundromat business?
Starting a laundromat can cost nearly $1 million to get started and about twice that over the first five years. The building, equipment, and utilities are most of the cost.
| Laundry Business Startup | |||
| Low (Go to people’s homes and do their laundry for them.) | Average (Laundromat, 1 Year Expenses) | High (Laundromat, 5 Years) | |
| Space | $0.00 | $700,000.00 | $1,100,000.00 |
| Legal Fee | $0.00 | $1,200.00 | $6,000.00 |
| Software | $0.00 | $3,000.00 | $15,000.00 |
| Equipment | $0.00 | $45,000.00 | $45,000.00 |
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $100.00 | $5,000.00 | $25,000.00 |
| Wages | $0.00 | $62,400.00 | $312,000.00 |
| Unexpected | $0.00 | $20,000.00 | $100,000.00 |
| Other | $0.00 | $200,000.00 | $200,000.00 |
| Total | $100.00 | $1,061,800.00 | $1,929,000.00 |
| Content | Laundromat Blog | Ferndale Laundry YouTube | Rosie Wash Express |
Check out our interview with Justin Pike of Ferndale Laundry:
How much does it cost to start a photography business?
You can start a photography business for as little as $500, which includes the price of the camera, a website, online photo gallery, and Adobe Photography Suite.
If you want to upgrade to a higher end business with better equipment and a good marketing budget, you should expect to spend around $45,000 the first year. It’s even higher if you want a good studio, however.
| Photography Business Startup | |||
| Low (Low End Camera) | Average (High End Camera, Full Year Expenses, Full Licensing and LLC) | High (5 Years) | |
| Space | $0.00 | $3,000.00 | $15,000.00 |
| Legal Fee | $0.00 | $1,000.00 | $5,000.00 |
| Software | $100.00 | $2,000.00 | $10,000.00 |
| Equipment | $500.00 | $10,000.00 | $15,000.00 |
| Insurance | $0.00 | $1,000.00 | $5,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $3,000.00 | $15,000.00 |
| Other | $50.00 | $0.00 | $0.00 |
| Total | $650.00 | $44,000.00 | $185,000.00 |
| Content | UpFlip Photography Blog | Mile High Productions Video Pt. 1 | Mile High Productions Video Pt. 2 |
Check out our interview with a couple that started their own photography company:
How much does it cost to start a handyman business?
Most places require handymen to be licensed contractors, so you can get started for as low as $2,750 without risking violating laws, but you can expect to spend around $40,000 during the first year if you really want to do it right.
| Handyman Business Startup Costs | |||
| Low (Just Get Started) | Average (Full Year Costs) | High (5 Years) | |
| Space | $0.00 | $3,000.00 | $15,000.00 |
| Legal Fee | $1,000.00 | $1,000.00 | $5,000.00 |
| Software | $0.00 | $2,400.00 | $12,000.00 |
| Equipment | $500.00 | $10,000.00 | $15,000.00 |
| Insurance | $1,000.00 | $2,400.00 | $12,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $7,200.00 | $36,000.00 |
| Material | $200.00 | $12,500.00 | $62,500.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $0.00 | $0.00 |
| Other | $50.00 | $1,800.00 | $9,000.00 |
| Total | $2,750.00 | $40,300.00 | $166,500.00 |
| Content | North Seattle Handyman Blog | North Seattle Handyman Youtube | Modern Realty Uses Similar Skills Investing in Real Estate |
Check out our interview with Caleb to find out how he makes $125K per truck:
How much does it cost to start a soap business?
Soap businesses are fairly inexpensive to start. You could start making soap for under $100 and build from there. Successful business owners will spend nearly $70K in their first year of business to make around $200K. Check out the TruIC blog for the steps to start a soap business.
Small Business Owners Funding Resources
Now that you know the costs associated with starting a business, check out some of our resources for finding funding.
- Business Credit: Check out our preferred lending partners to get small business loans or a business credit card.
- Business Hub: Learn how to start a business entity, get insurance, and estimate a company’s revenue in our hub.
- Small Business Administration: Get information from the SBA on grants, loans, and local business resources.
- Evaluate Funding Options: Whether you are using a personal savings account or looking for alternative funding methods, check out our funding blog.
What Type of Business Will You Start?
We’ve covered the typical expenses associated with the costs of starting a business. Now it’s time to examine your personal expenses and cash flow to cover the filing fee and other business costs.
Make sure to follow our YouTube channel and blog for more great information on how to start a business.
Which business do you think is a worthwhile investment? How will you manage the financial implications of starting a new business?
