If you are thinking about starting a home based business, knowing how much you need to invest to get it going should be high on your priority list.
There is advice out there that says you can launch a business for $100. But is that really realistic? We wanted to find out once and for all what the average work at home mum spends.
Why is it so important?
The small business association reports that 50% of businesses will fail in their first year. This statistic really gets my back up. I want us to do a better job, to empower more women to step out as business owners and succeed.
There are several reasons a young business might fail but one of the primary reasons is Cash Flow. Yes, I know for many of us the numbers are the boring and confusing part but they are the life-blood of your business, you gotta get friendly with your numbers right from the start.
We are all living in a really exciting period of time. It has never been easier to get the financial freedom you crave for yourself and your family. And I want that for you.
But if you don’t have a clear picture of your costs then you are going to find it difficult to manage your business to success.
So today I can at least clear some of the mystery away for you and reveal how much the average work at home mum spends launching their business.
Recently Business Jump we did an in-depth survey with 11 Work From Home mums to find out more about their business. One of the questions which was asked was how much does it cost to launch an online business, here are the results.
Average Cost To Launch A Home Based Business
We can reveal that 80% of those we surveyed said they spent between 0-$10,000 to launch their business.
And the average work at home mum spent $5,000 launching their business.
Read also: How Bloggers Can Make $10,000/Month from Home
Average Cost by Business Type
But what about the types of business. Do the figures vary depending on if you are launching a product or a service based business?
The short answer is yes.
Launching a product based business does require more financial investment.
Those who selected they spent $5000-$10,000 were all product based or retail businesses.
Most Costly Expense
So what was the primary expense that these businesses owners invested in?
We found that in most cases it was the website that business owners spent the most on.
One survey respondent answered:
“For me, website and it continues to be. My blog was set up with a provider who owned the CMS (Central Management System) and any customizations or changes were very costly.The best decision I made was to move my blog to WordPress so I had more control over the everyday changes I needed to make.” Sara Keli from Kid Magazine says of her website.”
So there you have it. An estimate based on real mums with real businesses. If budget is a block for you and you feel you don’t have the money to spend we recommend finding ways you bring down the cost of your website. As this last survey respondent teaches us, it’s important that you are able to manage the changes to your website yourself.
Without control your costs will very quickly add up. Even minor image or text changes can add up to a costly monthly fee.