In my last post I talked about the importance of starting your company with some money in your pocket. I see so many posts on message boards, and talk to so many mothers who are just starting new companies, that revolve around the premise that they want to start a business or work from home and yet they don’t have any money to do so, so what can they do that will cost nothing but make tons.
The answer: Nothing. And if you find a company promising you that you can invest nothing and make a million, run in the opposite direction: There is probably a catch.
This post is not only for mothers interested in working from home, though over fifty percent of all new businesses today are started by women. Instead, it is for anyone who is considering venturing out on their own. If you want to start a business but you don’t know what might be involved cost-wise, consider these three things: Money needed for starting a company, running a company and promoting a company. Basically, everything you do if you own your own business will fall into one of these three categories.
First, you need money for the start up. I know you are thinking well, I have office space in my house: What else is needed? A lot, really.
Today I’ll examine the things that you will need to have before you open the doors, so these involve start up costs only. In the next week I’ll examine operating costs as well as marketing costs.
For starters you will need a business license for the county in which you live, and you might need a certificate for the state as well, depending upon where you reside and the type of business you are opening. You’ll not only need equipment but if you are producing a product you’ll need materials for that product so you can make some in advance. You can’t start out a business with no inventory on hand, even if you are making a product that is done specifically on a per order basis.
You’ll also need the equipment and supplies to run this company. That may include a computer,fax machine, scanner, camera, software, and other necessary tools depending upon the occupation.
You’ll need a phone line and most likely an Internet line.
Then you’ll need regular start up marketing tools, such as business cards, advertising space in various publications, monies to attend networking events to get the word out, money perhaps for a press release or brochure and additional money for other marketing and advertising tools. These may include pens, pads of paper or other items you can pass out at events. Door magnets are a hot ticket right now, as are car stickers that are placed on the back window of the car.
You’ll need money to develop your service or product, which means you’ll need tools for the job that are specific to that job. In my marketing company I invested a ton of money upfront for things like a great digital camera for doing product photography, software that went along with that camera, a wacom tablet for my graphics and software that allows me to do these graphics. These were not cheap items, and you don’t want to start off investing in the cheapest if you expect to produce quality work, so have some money in your pocket for this as well.
Finally, you may need to invest some money in a good wardrobe. Though you may be working from home, you’ll need clothes that you can wear if you are meeting a client or attending events.
That said, I would also hibhly recommend that you invest some money in organizations that are relative to what you are doing. I am a member of NAWBO in Orange County and it has been a wonderful way for me to promote my company and meet others who are doing the same thing that I’m doing. What’s more, I recently won a $1000 scholarship for taking classes that would help my business! Totally worth the sign up fee.