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The Cost(s) of Starting Your Own Small Business

How much does it cost to start a small business? Estimates vary widely depending upon the type of business and the location. A micro-retail business operating out of your home may cost only a couple thousand dollars to open, whereas a brick and mortar retail business or restaurant can easily require tens of thousands of dollars to get off the ground. Before stepping out into your entrepreneurial adventure you need an idea of how much capital your operation will consume upfront.

The Small Business Administration (SBA) provides an insightful sample worksheet to calculate potential monthly expenditures. The following items represent some of the more high cost and variable elements.

Retail or Office space

If you opt for a brick and mortar location, rent will constitute one of your largest fixed expenses. Rent varies significantly between regions, and even within a single zip code.

Equipment & Inventory

Chances are your business will require some sort of specialized equipment, whether that be a pizza oven or an x-ray machine. Be sure to take into account the costs of these supplies and any necessary building improvements for your office or store.

Additionally, you will almost certainly need a point of sale system for accepting credit cards for small businesses. The ideal system offers not only ease of use, but also built-in integrations, making it compatible with Quickbooks to streamline accounting and more. The POYNT Terminal, which Moolah has partnered with, provides multi-application interconnectivity, along with Moolah’s competitive and transparent transaction fees.

Licenses and Permits

At the very least you will probably need a city business license. These typically run between $50 and $100 in most municipalities. Still, for certain business types, such as those that involve manufacturing or distributing food or alcohol, there are numerous required permits, with licensing fees easily running into the thousands of dollars. In some jurisdictions, licenses to serve hard liquor sell for hundreds of thousands of dollars. Know your jurisdiction and plan accordingly.

Employee Salaries

To attract and retain competent employees you will need to pay competitive wages. Your local minimum wage will give you a minimum baseline, but be sure to research average industry compensation specific to your locale. As with many other things, the cheapest employee is not necessarily the least expensive. Reliable help will save your business money in the long run. The Poynt Terminal integrates with many employee management technologies, making it a natural hub for your business activity.

Insurance

Protect your business and yourself by purchasing an appropriate policy. Additionally, if you have employees, even if they are family members, your state may require workers’ compensation insurance. Failing to obtain vital insurance will leave you vulnerable to lawsuits and possibly even criminal complaints.

Not all costs are monetary. In fact, the most important costs of starting a business may well be the time and heart you invest. Starting a new business can be both scary and exhilarating. By approaching your new business venture with a sound plan, including the best point of sale and credit card processing, you’ll maximize your probabilities of success.

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Surcharge FAQ

Surcharge Compliance

If you are considering introducing a credit card surcharge for your patients, it is important to understand that there are specific rules and regulations that must be followed when enrolling in and operating under a surcharge plan.

This article provides a general overview of common surcharging requirements. This content is provided for informational purposes only and does not constitute legal advice. It is the responsibility of each merchant to review, understand, and comply with all applicable laws, card-network rules, and regulatory requirements, including notification timeframes, signage requirements, surcharge percentage limits, and jurisdictions where surcharging is prohibited.

If you are unsure about the laws or regulations applicable to your practice, you should consult with qualified legal counsel. Moolah assumes no liability for a merchant’s compliance or non-compliance with credit card surcharging rules or regulations.

Transparent Communication
Card networks, including Visa, Mastercard, Discover, and American Express, require merchants to clearly and transparently disclose when a credit card surcharge is applied.

Practices must clearly notify patients of a credit card surcharge through appropriate signage placed at the practice entrance, at the point of sale or terminal, and anywhere payments are accepted. If payments are accepted online, surcharge disclosures must also be clearly visible on the practice’s website. All disclosures must inform patients that the surcharge applies only to credit card transactions.

Surcharge Limits
Credit card surcharges must comply with both card-network rules and applicable law. The surcharge amount may not exceed the merchant’s actual cost of accepting credit cards and may not exceed 3% of the total transaction amount.

Card-network rules cap credit card surcharges at 3%, meaning that if a merchant’s processing costs exceed this amount, the excess portion cannot be passed on to the patient.


Warning
The following is a general overview of credit card surcharging rules in the United States. Merchants are responsible for understanding and complying with all applicable requirements.

Network and State Restrictions
The major credit card networks, such as Visa and Mastercard, impose specific requirements related to surcharge limits, advance notification, and disclosure.

In addition, several U.S. states and territories regulate or prohibit credit card surcharging. At the time of writing, credit card surcharging is prohibited in Connecticut, Maine, Massachusetts, and Puerto Rico. Other states, including Colorado, Minnesota, Mississippi, New Jersey, and New York, impose restrictions on surcharge amounts or require specific disclosures.

If your practice operates in a state that restricts or prohibits credit card surcharging, you must fully understand and comply with those requirements before implementing a surcharge.

Debit card transactions may never be surcharged, even if the debit card is processed as a credit transaction.

Applicability
Credit card surcharges may be applied only to credit card transactions. Other payment types, including debit cards and alternative payment methods, are not eligible for surcharging.

Regulatory Compliance
Merchants are responsible for maintaining ongoing compliance with all applicable card-network and legal requirements. This includes meeting advance notification obligations, using compliant signage and disclosures, adhering to surcharge percentage limits, and respecting jurisdiction-specific restrictions.

By following these guidelines, dental practices can implement credit card surcharging in a way that aligns with card-network rules and promotes transparency with patients. Clear and upfront communication helps maintain patient trust and supports a positive payment experience.