According to a 1993 report published by the Small Business Administration, the median start-up cost for a solo business owner to open the door is $6,000. In 2006, the Wells Fargo/Gallup Small Business Survey showed start-up costs were closer to $10,000.
The actual start-up costs differ from business to business. It all depends on what the business does. Location, building costs, and the equipment need to all be taken into consideration as well. Luckily, starting your own massage business tends to cost minimally in comparison to other businesses. You wouldn’t need to purchase or lease a building, which is a big ticket item for start-ups.
When you are figuring out how much start-up money you would need, don’t forget to include operating costs and personal expenses for at least six months. It may take a little longer than desired to start seeing a payback in the business. Research never hurts, looking into how other local businesses are doing, and how much things costs per month. This way you can stay ahead of the game.
Here is a list of the initial expenses that need to be considered in a business plan:
- opening a business checking account
- first and last month’s rent and security deposit – if renting space
- business license
- liability insurance
- marketing materials: website, business cards, stationery, brochures, logo design; opening promotion package (e.g., direct mailers, ads in local papers, magazines, radio, etc.)
- office supplies
- music system and CDs
- linens, lotions, essential oils
Recurring annual expenses can also include: property insurance; professional association membership; legal and accounting fees; and website hosting fees.
Common monthly expenses include: rent; utilities; telephone; bank fees; supplies; networking club dues; education; promotion; Internet access; postage; repair and maintenance; business travel; inventory; and business loan payments.
Starting a business isn’t always easy, or cheap. But it is very doable. Planning is important step of the process that cannot be overlooked. Owning your very own business is exhilarating and fun. Planning and developing your business goes a long way making your business successful.