We have things to say

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.


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.