Starting a business comes with a few upfront costs. However, if you are starting a digital business, the costs will be vastly different from a traditional brick-and-mortar business.
So, what are the expected costs of a digital business?
Establishing A Business Entity
One of the first steps in starting a business is establishing a business entity. This can be done through your state’s Secretary of State office or with the help of an attorney. There are a few different types of business entities, but the most common are sole proprietorships, partnerships, and corporations.
When establishing a business entity, you will need to choose a name for your company and file it with the state. You will also need to file articles of incorporation (or organization) and bylaws, if applicable. There may be other filing requirements depending on your state and the type of business entity you choose.
If you are not sure which type of entity is right for your business, consult with an attorney or accountant. Establishing a business will vary in cost as most of the fees are determined by local county officials.
Creating An Identity
Once your business is established in a legal manner, you’ll need to begin working on creating an identity. This means creating a logo, setting up social media profiles, developing a website and more. It’s important to start branding your business as early as possible so that customers will start recognizing your name, products and services.
One of the best ways to start branding your business is by creating a strong logo. The logo should be simple and memorable, and it should convey the essence of your company. You can also use the logo to create marketing materials, such as business cards, letterhead, and websites.
Another important part of your branding is your website. Your website should be professional and easy to navigate. If you don’t want to use a DIY website builder like Squarespace or Wix, consider hiring a WordPress web developer to build a custom website for you.
Buying Software & Technology Tools
With a business type established and an identity underway, you’ll need to then decide what software and tools you need to successfully run your business. Software may include basics like Microsoft Office (Word, Excel, Powerpoint), an accounting tool such as Quickbooks, communication tools like Zoom or Microsoft Teams and anything else needed to run the day-to-day activities of your digital business.
The cost of software and technology tools varies, so it’s best to do your research and only use the tools you really need.
The best tip in business is to hire great people who do the work for you. For this reason, you’ll want to carve out a budget for hiring contractors. These people may include a tax accountant, a lawyer, a graphic designer, a copywriter, etc. Anyone you will need to help run your business should be part of your budget.
Starting any type of business will require some upfront cash. However, if you can use these tips above, you’ll be able to save your business from certain expenses. Define your business type first, then establish an identity with a logo and website, and finally, determine the tools you will need to successfully run your business.