How Much Does it Cost to Start an Online Business?
When I first started in online business, I had no clue how much it costed. Some people say you can start for free. Some people say they spent $100 and other people will say they started with $10,000.
My question was always, "How much should I spend to start my business?"
Added to the confusion, there's so many tools. There are:
- So many courses!
- Funnel software
- Web design software
- Premium themes
- Countdown timers and conversion tools
- Email marketing software
- Live chat/chatbots
- and so much more...
The Fact is...You can Spend Alot or A Little...It's Your Choice
You could spend loads on everything there is out there! It's no wonder the majority people I've met here have said at one point or another, they get caught up in shiny object syndome or buy something and end with buyer's remorse.
For all these reasons and more, I decided to write this post.
I Hate Seeing People Give up Because of Unrealistic Expectations
It pains my heart to see people starting with excitement then 2 or 3 months later, they drop out because "they're not making money" which often times means, they didn't have enough room in their budget to sustain the expenses.
I'd like to be very upfront about what the expenses are and how long they should be able to hold out, so let's chat about it here a little bit.
In my previous post, I showed that in the 1-2 year range, most hard-working bloggers who are willing to share their earnings are reporting an income somewhere between $100 - $1500 range and in the 2+ year range is when they're consistenly earning upwards of $1500 (and some even up to $22,000).
Anomalies are possible, but it's best to ride on the conservative side with expectations.
With that in mind, it's important to keep the expenses at a minimum (especially if you're in a financial constraint). The main things you can control to get your income moving in the right direction is:
Your marketing strategy and product/services you promote which will control >>> Your traffic which will control >>> Your income.
Added to that, to get more profit, you have to either increase your sales or decrease your expenses. If you're business income is coming from a fragile personal finance situation, then you'll need to be very disciplined about what you spend on, and take very few risks.
I learned this the hard way. Hahaha.
As your profit grows, then you can experiment more, take more risks, and upgrade from lower cost products/services to their more luxury counterparts.
To manage your expenses in your personal budget and business budget, I recommend you starting with a software like Dave Ramsey's Everydollar app or YNAB (stands for You Need a Budget). You can download them on your phone, then decide how to spend the money you have for your business (or personal life) to achieve your priorities. Both software options are great and you can see that I've used both in my 22 Month Case Study.
Since this is a topic that I believe is a huge pain point for us at Wealthy Affiliate, I've published a training on what a startup business budget looks like. In this training, you can see:
- Where Wealthy Affiliate fits in terms of business expenses
- What expenses are mandatory and what's luxury
- How much you can expect to spend in online business
- What to do if you're in a financial hardship (or you're working to grow a larger budget for business)
- What are the differences in getting a job vs. starting an online business
- and so much more...
I'm so passionate about you having realistic expectations in business, being able to use your money to meet your goals, and sticking it out in business long enough to achieve the goals you came here for.
Hopefully, you enjoy this training I've made!
To check out the Training "What Does a Startup Online Business Budget Look Like?", check it out ======>>>> Click here <<<<<======
Also, like and leave your comments below (here or there). I'd like to know:
- How do/did you manage your startup budget?
- What do you recommend for people starting their businesses to ensure they're able to stick with it until they generate revenue and profit?
- In the cases you've seen, how long did it take them to get revenue?
- What are the most mandatory expenses for starting an online business?
I'd love to hear your thoughts on this.