Now, in the current financial climate, no one (save for a very select and lucky few) has much money to throw around. If you pay attention to every penny, you may think that finding something for a business idea will be impossible. Luckily (and I’m living proof) it doesn’t really take THAT much money to start a business. However, and this is the cold, hard truth, you do need some. Not much but some. You can’t start a business by spending nothing at all – well if you can, please email me and tell me how!
But maybe you actually need less than you think.
If you are starting an internet-based business where you trade intangible products such as information (e.g.), you can start a business through the following means (note: all prices are approximate and are subject to change):
One computer/laptop = £300
Standard Microsoft Office software = £100
Broadband Rental = £5 – 10 per month
.co.uk domain name registration = £6
One year website hosting = £30
For that little effort, you could set up a free WordPress blog or website, create content, generate traffic, and then monetize your blog. All it would cost you is your time and energy. If you already have a computer, a broadband connection, and office software, you’re already ahead of the competition.
Realistically, however, you’ll likely need money for some or all of the following:
• Continuing education (always a good investment)
• Physical inventory (if you run an online store)
• Raw materials when you manufacture products to sell
• Marketing Materials
• Network Fees
• Computer software and equipment
• Registration Fees and Licenses
• Accounting Fees
• Logo and branding
• Office equipment
Remember that you also have to set aside part of your income for tax purposes.
commercial bank accounts
While you may not make a lot of money to start with (although we hope so!), it’s best to set up a commercial bank account as early as possible. Again, research the different accounts on offer, see what fees you have to pay for different services, and find out if accounts come with useful extras that can save you some extra cash. Having separate accounts makes filing your tax return a lot easier. Make a list of the different business accounts on offer to see which one suits you best.
Government websites often contain useful tax information related to your home country.