Startup Costs: Bootstrapping your way into profit

“OK,” I hear you say, “So it sounds like a good business to get into but what are my start-up costs going to be?”

It depends on whether or not you already have your own computer. If you currently own a reasonable computer then you have a head start. If not, don’t worry. You can buy a cheap second hand computer on eBay or even a brand new one with a modest specification. Failing that, use your local library, school, adult education centre or friends computer until you generate some revenue to buy one. But I urge you to put this at the top of your shopping list.

Let me outline the very minimum of what you need:

  • A computer running the operating system of your target market (Windows, Mac or Linux).
  • Internet connection and email account.
  • A telephone.
  • Your advertising budget.

The following would be very useful once you have a little revenue:

  • Printer (preferably a Multifunction device) – essential for invoicing.
  • Business cards – I didn’t have these when I first started. But by my second month I had them.

Try to spend next to nothing when starting out. Only spend on things that link directly to profit, such as advertising. Once the ball is rolling and you are generating cashflow, you can slowly but surely build up on the usual business necessities.

As you can see, you do not need to spend much at all to get started in this business. Therefore, you have a low downside risk and little to lose.