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4 Costs Associated with Building Your Business Online

4 Costs Associated with Building Your Business Online

Going into business for yourself is an exciting time in your life. But this is also the time for you to show extra caution. You need to be sure that you will not be racking up costs that can cripple you in the long run. Here are the four main costs that will be associated with establishing a new business on the web.

Website Design Services for Your New Business

One of the very first things that you will need to think about will be the average cost of website design for small business clients. If this is the first business you have ever put together, you will definitely find yourself in this category that requires website design services. This is a very good first lesson for you to learn.

You certainly can’t do without a website in today’s business world. This is a must that you will need to get right the first time. You want to make sure that the expert you put in charge of this project knows exactly what they are doing. You also will need to know how much you are willing to pay for this service.

Be careful what you agree to. The service that you are dealing with needs to have all of the necessary qualifications and experience to handle every problem that may come up. You don’t want to be nagging them to make your site more optimized for mobile users or to fix glitches that pop up. They should do that on there own.

A License for Your Business

Before you can even start your business, you will need a license, permit, or any number of other certifications that may apply for this purpose. The rules that govern the acquiring of this license will vary depending on the state that you live in. This also applies to what licenses you will need and how much they cost you.

A business license may cost anywhere from fifty to several hundred dollars. There may also be annual account renewal fees to keep in mind. If you are involved in certain sectors of industry, such as mining or agriculture, you will also very likely need a federal business license as well as any other number of permits.

Have an E-Commerce Platform

The next major purchase that you will need to keep in mind will be a modern E-Commerce platform for your business. This will be the platform that will allow you to sell your goods and services directly to the public using the world wide web as your medium. Costs in this area can range from $30 to $299 a month.

This is one recurring cost that you will have to swallow since you can’t afford to be unable to do business over the web. You will also have recurring charges associated with your online merchant account.

These are costs that need to be factored into your projected profits so that you don’t project a final loss. They represent a considerable part of your monthly outlay.

Inventory to Stock Your Store

Another important source of recurring costs will be the inventory that you buy in order to stock up your web store. This will be the case unless you plan to make all of your own goods. Even if you take this route, you will still very likely need employees to handle these goods and keep track of them for you.

You may have a deal in place to receive your goods from a wholesaler. This may involve a contract that gets renegotiated on a yearly or biannual basis. You will also need to keep the price you pay for your inventory as low as you can. Doing so will give you the highest possible margin of profit from each new sale.

The Web Is the Place to Do Business

Of all of the places in the world where you can choose to do business, the web is by far the easiest. But this doesn’t mean that there won’t be a serious learning curve for you to master. Your best bet will be to keep an eye on costs. The less overhead you can create, the clearer your path to profits will become.

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by Tracie Johnson // Tracie Johnson is a New Jersey native and an alum of Penn State University. She is passionate about writing, reading, and living a healthy lifestyle. She feels happiest when around a campfire surrounded by friends, family, and her Dachshund named Rufus.

Opinions expressed by contributors are their own.