Now, in the current financial climate, no-one (apart from a very select and lucky few) has a great deal of cash to throw about. If you’re watching every penny, you might think that finding anything spare for a business idea is going to be impossible. Happily (and I am living proof) you don’t actually need THAT much money to start up a business. However, and this is the cold, hard truth, you do need some. Not much, but some. You cannot start a business spending nothing at all – well, if you can, please email me and tell me how!
But, you might actually need less that you think.
If you’re starting up an internet-based business, where you’re dealing in intangible products such as information (for example), then you could start a business with the following (note: all prices are approximate and subject to change):
A computer/laptop = £300
Standard Microsoft office software = £100
Broadband rental = £5 – 10 per month
.co.uk Domain name registration = £6
A year’s website hosting = £30
For this small outlay, you could set up a free WordPress blog or website, create content, begin to get traffic and then monetise your blog. All that it would cost you going forward is your time and energy. If you’ve already got a computer, broadband connection and Office software, then you’re ahead of the game already.
Realistically though, you’re likely to need money for the some or all of the following:
• Further training (always a good investment)
• Physical stock (if you’re running an online shop)
• Raw materials if you’re making products to sell
• Marketing materials
• Networking fees
• Utilities
• Computer software and equipment
• Insurance
• Registration fees and licences
• Accountancy fees
• Logo and branding
• Office equipment
• Stationery
Remember, you’ll have to set aside a proportion of your income for tax purposes as well.
Business Bank Accounts
Whilst you might not make a lot of money to start off with (although here’s hoping!), it’s best to set up a business bank account as early as you can. Again, research the different accounts on offer, see what charges you’ll have to pay for different services and find out if any accounts come with useful extras that could save you a bit of extra cash. Having separate accounts will make your doing your tax return much easier. Make a list of the different business accounts on offer to see which one will suit you best.
Government websites often have useful tax information as it relates to your home country.
