Today’s post is from Natasha from Business Jump Co, an Australian-based company that helps budding entrepreneurs set up their own home business. You’re gonna love this blog post as she discusses the results of a recent survey they conducted.
What Is The Real Cost Of Launching A Home Business? Business Jump Uncovers The Numbers
If you are thinking about starting a home based business, knowing how much you need to invest to get it going should be high on your priority list.
There is advice out there that says you can launch a business for $100. But is that really realistic? We wanted to find out once and for all what the average work-at-home-mum spends.
Why is it so important?
The small business association reports that 50% of businesses will fail in their first year. This statistic really gets my back up. I want us to do a better job, to empower more women to step out as business owners and succeed.
There are several reasons a young business might fail but one of the primary reasons is Cash Flow. Yes, I know for many of us the numbers are the boring and confusing part but they are the life-blood of your business — you gotta get friendly with your numbers right from the start.
We are all living in a really exciting period of time. It has never been easier to get the financial freedom you crave for yourself and your family. And we want that for you.
But if you don’t have a clear picture of your costs then you are going to find it difficult to manage your business to success.
So today I can at least clear some of the mystery away for you and reveal how much the average work-at-home-mum spends launching their business.
Recently at Business Jump we did an in-depth survey with 11 work-from-home mums to find out more about their business.
One of the questions we asked was how much does it cost to launch an online business, and here are the results.
Survey Results: How Much Does it Cost to Launch a Home Business?
We can reveal that 80% of those we surveyed said they spent between 0-$10,000 to launch their business.
And the average work at home mum spent $5,000 launching their business.
#2: Average Cost By Business Type
But what about the types of business. Do the figures vary depending on if you are launching a product or a service-based business?
The short answer is yes.
Launching a product-based business does require more financial investment.
Those who selected they spent $5000-$10,000 were all product-based or retail businesses.
#3: Most Costly Expense
So what was the primary expense that these businesses owners invested in?
We found that in most cases it was the website that business owners spent the most on.
One survey respondent answered:
“For me, website and it continues to be. My blog was set up with a provider who owned the CMS (Central Management System) and any customisation’s or changes were very costly. The best decision I made was to move my blog to WordPress so I had more control over the everyday changes I needed to make.” Sara Keli from Kid Magazine says of her website.”
So there you have it. An estimate based on real mums with real businesses.
If budget is a block for you and you feel you don’t have the money to spend, we recommend finding ways you can bring down the cost of your website. As this last survey respondent teaches us, it’s important that you are able to manage the changes to your website yourself.
Without control, your costs will very quickly add up. Even minor image or text changes can add up to a costly monthly fee.
Realistically, you can start a home business for less than $500. It’s about making the right choices in terms of your platform and getting clear on the type of business you’re going to run. These will drive your costs. Once you know what those are, then you can decide where to spend money and where to save.
If you want to save even more money then there are tons of courses out there which can help you to design your own basic website. Natasha has a WordPress based e-course, for example, that will take you through a step-by-step process of getting your website URL and launching your whole website. She designed this course to save you thousands at the start-up stage.