Top Online Business Startup Costs

When was the last time you bought something without looking at the price tag?

I hope you answered never because that's not very smart consumerism. 

So the same should apply for starting an online business. You have to and deserve to know how much money you can expect to invest in to get you started.

First things first.. the freebies 😉

Yes, you read that right.. there are goodies that you can get for FREE when starting your online business!

For starters, you can begin by using the free version of a video conferencing platform like Zoom or Google meets (thank youuu, pandemic 😏) to meet with clients interested in your digital product or service, team members, and others.

Most of these plans have limited participant and meeting duration limits, but you can get away with it for a few months as long as you're not planning to host big online events with a massive number of attendees.

Another handy, free tool is a meeting scheduling app like Calendly to help your clients schedule meetings with you in your sleep. The free version lets you do just that with one appointment type. Staying organized is crucial to online business success. 📆

You can't sell your products and services without marketing them, so take advantage of free online marketing platforms.

I love Canva for designing creative and fun graphics and flyers. It's a fan favorite thanks to its highly user-friendly interface and customizable features. 🖌️

Once you have your graphics made, you'll need to post them somewhere to reach your audience. So you can use familiar social media platforms like Facebook, Instagram, and TikTok to get started for free.

Another way to reach your audience besides social media is through email marketing. Keep your work and personal life separate by registering an email domain for all things business-related. I use Gmail because it comes with a host of other neat Gsuite tools that I use, too.

Last but not least, if you feel like you need an extra set of hands to help you run your online business, consider recruiting student volunteers instead of employees when starting out. You can ask around in Facebook OT students groups to recruit volunteers looking for flexible service hours. 🤝

You'll save tons of money and who knows, you just might end up hiring your volunteer as your virtual assistant like I did!

Let's recap - the free stuff that can help you get started includes:

1. Video conferencing platform
2. Meeting scheduling app
3. Graphic design tool
4. Social media marketing platforms
5. Email domain
6. Student volunteers
   
   

The must-have expenses 

Here are some inevitable, recurring expenses you're going to need to start your online business on the right foot:

Virtually all states in the U.S. require businesses to have a legal business license. These cost anywhere from $50-$500/year depending on the state you live in.

Another necessary expense is professional liability insurance which protects your business. These can be bought for as low as $50/month. I personally use Proliability insurance for my business.

Buying a virtual address is also a must-have for your online business if your state doesn't allow you to have a P.O. box. A virtual address allows you to receive business mail at a designated location that isn't your home so you can keep your home and business affairs separate. You can get these for as little as $10/month. 📬

If you want a website to market your online products and services, then you'll need to purchase a website domain so that no one can steal your website name. You can purchase these for as low as $10/year.

After registering a website domain, you'll need to invest in a website hosting platform to design your website on. These can range from anywhere between $5-$100+/month depending on how many features you want. I personally use CloudFlare for my webhosting. 🖥️

You'll also need an online product hosting platform to build your online products in such as online courses or digital memberships. Think of it like a storefront library for all your digital products.


Some sites offer your first product hosting for free, but the more products you want to host at once, the more it'll cost you.

Let's recap - the top online business expenses include:

1. A business license
2. Professional liability insurance
3. Virtual address
4. Website domain
5. Webhosting platform
6. Product hosting platform
   
   

There are TONS of options out there for each that are too much to get into right now, but I highly recommend investing in an all-in-one platform like Kajabi if you're serious about hosting and selling multiple online products.

Although these are more pricey, it's less of a headache compared to piecemealing together each of these platforms and software from different sites.

All these expenses should help you get well on your way to establishing your first successful online business! 🚀 

P.S. At Business to Boss, we guide you through each step of the online business creation journey. If you're ready to start creating and selling online courses, book a call today to see if we're a good fit for you.