Flashback, what were your startup costs?

[AffiliateDreamer]

Hi,

I thought it would be interesting to hear everyone's story in terms of startup costs.

I'm talking about everything from getting your logo designed, shopping cart software all the way too purchasing your first batch of inventory etc.

Please also give an idea if this was your first venture or not, I would imagine those with more experience would jump right in with a larger startup since they know what it takes etc.

rough cost break down would be great!

-----------------

I will start it off, I should be live within the next month or so, my costs have been:

1. shopping cart software $0 (custom designed by me, my time is free at this point hehe)
2. inventory $10K (that's the minimum to get going)
3. pci & ssl $250
4. hosting $160/month
5. web design + logo $1300

Total $11 710

[ByronM]

Don't forget your desktops, accounting systems, payment processors, merchant fees, insurance, packaging/shipping materials, workspace, credit/application/LOC fees and all that good stuff ;)

[Juvie]

Don't forget advertising and/or PR costs. But wait! There's more!

Monthly operating costs for the first six months to two years before sales become dependable (or until you throw in the towel).

Business license.

Any taxes that need to be pre-paid (like LLC minimum tax).

Security system (gotta protect that inventory).

Photography equipment and software.

Travel expenses if you need to go to trade shows to source inventory.

I'm sure I'm forgetting something, but those are off the top of my head.

[HRoth]

I started with $35 worth of stock and 3 web pages I designed myself. No cart. Didn't take credit cards. I bought a Korean wysiwyg program for $40, paid for my domain name and paid for webhosting one month at a time. I didn't borrow any money, never have, and kept working at my regular biz, which was ghostwriting, to put money into the shop until it could stand on its own. Business license was $35. I was able to quit ghostwriting 3 years after starting the shop. I've been in business 8 years with it. So you can start a business without much money if you are willing to put a lot of sweat equity into it.

[ytswy]

Probably about fifty quid. A very cheap and truly crappy hosting package, a load of very old used stock that was thrown out by a previous employer that went bust. Operated from residential accommodation using phone, internet, computers and software that were already present.

Two people with enough money not to take any salary for the first few months, and most importantly the contacts to get credit accounts with a couple of relevant suppliers for drop shipping.

I wouldn't necessarily recommend it ;) Looking back there was a lot of luck involved - principly that in 2001/2002 we could put a truly awful website up and rank and convert well enough (phone sales only, no cart!) to make it work.

I'm sure it can still be done, but for ecommerce you'd either have to budget for web design or have considerably more talent at it than I did back then..

[pbradish]

... about $2000 and a 24 pack of rolling rock.

It was my first ecommerce website and I designed it myself tweaking a software purchased for about $120. It was drop ship so I didn't have to worry about much overhead.

Looking back I was crazy, but lucked out... made a few bucks... and sold for over 20x the startup costs less than a year later.