Where's the $$Money$$ ?

Credit/Cash/Loans - Startup Money for Your New Business

Most home-based business, money-making, Internet income, "be your own boss" information on the Internet assumes you have the money to get started in your new business venture. Right?!?

My advice is to "be realistic". As you spend your own money to begin your venture, it is not only the cost of the Internet connection and websites alone. If you plan to have an Internet business, remember that Marketing is the Key to Success and you will need to spend enough marketing dollars to "present" you product to your customers.

How Much Money do you need to START your BUSINESS?

Most startup expenses can be managed easily. You should keep track of any money you spend while doing your research, subscribing to any Internet service, business offers, buying a tool - like graphics or accounting software, and costs for building your website. If you need to pre-purchase products, or licenses for products to sell, add those too.

When you purchase new PC's, vehicles, or other major capital items, there are provisions for spreading the expenses over multiple years. If so, work with your CPA first. You can save on depreciation and the timing of the purchase, if you plan ahead.

If you can, use a separate credit card for your Internet expenses. It will be easier to manage. Your costs for building a website will run from less than $50 on up, depending on your design, services and tools, and help needed. When you are ready for an Autoresponder for email campaigns, for example, expect to pay another $20 or so per month.

For each website URL or Domain name you want, you "buy" the domain name for a time period, at least one year. Some services charge monthly; some charge all at once for a year; some charge more for "setup" and email. Read more in my Domain Name and Hosting Plans sections.

If you need to accept credit cards from your customers, you will also need a Merchant Payment Processing Account. These used to be expensive, but lately there have been partnerships with banking institutions that make it less costly than it was. Expect to pay at least $25 or $30 per month, plus a percentage of all amounts transacted with them.

PayPal was created for eBay, by eBay, but it has become a widely accepted alternative for non-eBay purchases lately and is less expensive. Read more details in my Payment Processing section. You might also consider becoming a Merchant Account processor yourself as one of your income streams.

How Much Money do you need to spend on Marketing?

You might only spend a few dollars to purchase your "business offer" and set-up your website, but your success will depend upon the exposure you get for your marketing efforts and dollars. Plan to spend enough money on marketing to get visitors to your website(s), or "all will be for naught".

How much? Well, that all depends. I think it's safe to say that you should spend what you can afford. It is an investment in your business success. You need to spend enough to get enough Traffic and Conversion to make your business profitable. You will probably want to try several marketing strategies and see what works best for your business.

Check out the section Internet Marketing for ways to Market your Products on the Internet.

Move onto the section Manage your Business for more tips on managing a successful business startup.