So, you want to start an internet business but you don’t know how much you need for a start-up. Well, I will give you an accurate approximation of the amount of dollars you will have to spend on the same. Setting up this kind of business does not necessarily costs you a lot of money. What it actually needs is your time.
To get the minimum cost of starting an online business, you must first look at the cost of basic requirements.
For you to start an Internet business, you will need a computer, internet access and modem. You will spend at least $500 to buy a computer and about $300 every year for the internet access. I bet you already have a computer and internet access. Otherwise, you wouldn’t be reading this post. Even if that is the case, you should still add the cost of basic hardware.
While you can use Blogger or WordPress.com to establish an online presence, such blogging platforms are only good if your aim is to blog about your experiences and thoughts but not for running a business. When setting up an Internet business, you will register a domain name, which is simply a website name by paying about $10 per year especially if it is a .com name.
Your website will have files, and you will need a place to keep them. So, you will need what is known as web host server. Depending on your budget and preference, you can pay for a shared web host server or a web host server dedicated to you alone. A shared web hosting will cost you around $60 – $100 per year, and you will share it with other hundreds of sites. This is an ideal option for you if you are on budget. But if you intend to run many sites, then you should opt for your own web-hosting server, which will cost you about $300 a year.
On top of the cost of basic hardware, website name and web hosting service, you will also pay for whatever you want other people to do for you. For instance, you might decide to write content for your blog yourself or hire a content writer. Furthermore, you might incur the cost of commission you will be rewarding the people you have referred to buy products from another business’s site. You will need about $200 to manage your internet business if you are going to do most of the things yourself.
In summary, all you need is a website name, a computer, a modem or rooter, internet access and a place to host your website. With all these, you can start and run an internet business without spending extra money. However, there is no harm in spending more money.
Therefore, the total cost of starting an internet business so far is:
- $500 + $300 for basic hardware
- $10 per year for a domain name
- $100 – $300 for web hosting
- $200 for management