04:Cost of Business-Then & Now

As I sat at my computer watching yet another training video about new software that I have started using, I started thinking about this new business world I am part of. I’ve been an on-again-off-again entrepreneur since the late 70’s when I started my first micro-business.

I got thinking about the huge differences in how we can run a business from our lap literally sitting anywhere in the world. Back in the 70’s (or 80s or 90s), this was almost inconceivable. Now we take it for granted.

So I thought I’d put together a quick comparison of doing business back then versus what we do today. This is not precise in my estimates of costs, but is my memory of what I personally experiences in several of the businesses that I started.

So here’s my walk down Memory Lane…

Comparison of costs of doing business today versus 1990

A long time ago, in 1990 (like 200 years ago in “technology years”), having to buy stuff, rent office space, travel to see clients and all the other expensive aspects of being in business helped to create many jobs in our economy. But his was a significant barrier to entry for starting a company, so it is a good thing that there were so many more jobs available then.

Now, because of Internet-based technology, low-cost computers, mobile devices and cellular networks with their smart phones, many of those jobs have gone away and our economy has shifted from employment-based to an entrepreneurial economy. Surviving in today’s world requires an entirely different skill set (and motivation), but results in greater opportunities for self-fulfilling work and financial gain.

Here's my list...

Design your own lifestyle business, stay at home, work on a beach somewhere

Office (rent, furniture, utilities, phones, staff) $1,000 – 5,000 per month)

Work from home (and take a tax deduction, so this actually is a gain rather than a cost.) This used to be illegal in many communities, and it was unacceptable for “legitimate” businesses. No longer true.

Furniture

Use what you got, or buy off of Craigslist

Consultants, advisors, copywriters, graphic designers

As a small business, I rarely hired these people because I couldn’t afford them. Today, I can and do hire them using Fiverr, eLance, etc.

Brochures

Usually unnecessary – refer to your website

Stationary

Usually unnecessary

Medical insurance ($1,500 plus per month or even uninsurable if you had pre-existing conditions)

Affordable Healthcare Act ($500-$1,000, depending on where you live, and if implemented by your state)

Telephone lines

Google Voice, Vonage, low-cost 800 service

Yellow pages listing

Craigslist, social media, Google Ads

Recruiting agencies

Craigslist, Monster.com

Advertising agencies

Google Ads DYI or hire placement specialist

TV, radio and newspaper advertising

Social media, Google Ads

Scope of business opportunities: local (maybe statewide)

Global via Internet or lifestyle traveling

Business location: city that you live in

Travel the world and still do business

Travel to see out-of-town clients (airfare, accommodations, etc.)

Web cam, webinars, social media, websites

Hiring an assistant (salary, benefits, desk space, supplies, etc.)

Outsourcing abroad, eLance, Fiverr

Apparel: suits or dresses, ties, shoes

Pajamas, gym shorts

Childcare: babysitters, daycare

Stay-at-home

Business Networking Clubs ($50/month)

Social media, mastermind groups, Wealth Affiliate (networking, yes, but so much more!)

Do you have any more items to add to the list? Most of these items reflect profound reductions in costs of doing business, but maybe there are some ways that costs have gone up. Everything seems to be so much faster today. Or is the learning curve slowing us down (like my having to learn how to publish a screencast)?

So, what do you think?

~~~

Tip Kilby