Among the things that other have mentioned an extremely crucial cost to consider is the cost of customer acquisition/marketing.
If you are a new company, what is the cost of creating awareness in your target market?
What is the cost of establishing yourself as a viable option in your space?
What is the cost of the various marketing efforts that you will make to carry out the above.
Although the idea of a simple online setup is nice, there are real costs when it comes to penetrating your market. These should be taken into account.
--- Brain Ninja Marketer for @Feathr. Feathr is a smartphone application that replaces business cards with a seamless digital experience, making it easy to share your personal and professional information in a touch-optimized format with anyone – even if they’ve never heard of Feathr.
Starting an online business is a great way to reduce the startup costs of a brick and mortar type business, but there are still a lot of costs you will need to consider. I'm not sure what you have written down, but here are the most common costs associated with a primarily online business.
Website - This includes your domain name, platform, and design. This is quite possibly your most important expense as it will be the face of your online business.
Web Hosting - An expense that never goes away, monthly web hosting can be found at a various number of outlets, many of which offer deals for multiple domains. This will normally run you about $6-$20 a month.
Email - Having an email address connected to your domain is more professional than having a Yahoo email. This will generally run you about $10 a month and can sometimes be added on with your web hosting.
Shipping - Free if you use USPS, about $10-$20 a month if you use a different service.
Software - This all depends on the nature of your site, but a variety of programs can enhance your site as well as the ease of filling your orders.
Computer, Printer, Office Supplies, Office Equipment - You may already have these or you may have to buy them, but there's always a need for some type of office even with online businesses.
Internet - This is a given, but it is also an expense that you will always need access to. Average high speed Internet is about $50 a month and is a necessity.
Hope these help!
I don't know that any costs are really 'hidden'. You just have to make sure your thinking about every aspect of your business when calculating costs.
That is a tough question to answer without knowing what expenses you are already accounting for. I don't know that any costs are really 'hidden'. You just have to make sure your thinking about every aspect of your business when calculating costs.
Depends whether you'll be dropshipping your products or manufacturing them yourself.
If you're dropshipping, all you'd need is a domain name ($10/year), basic web hosting ($4 - $15 per month), and you're good to go. The costs don't stop there though. Marketing, promotion, and SEO is what will be costly.
Thanks Gary for the information. I found it quite helpful.
Some startup costs to take into account are; the cost for a website, web hosting, shipping, inventory, office supplies. Also you might want to hire a lawyer, and accountant so include those fees as well.
The main hidden "cost", which you might not have considered, is the time needed to promote and market your new store. To be successful, you'll need to research the most effective methods and take the time to actually do the work.
Setting up the site is a good first step - and congratulations on getting that far - but effective web marketing will make or break your business. Good luck!
--- Online business ideas, resources and strategies for a profitable website.
These are great advice and suggestion from the community. I would also suggest that you look into leasing option for equipments that you may need be it for the office or for your lingerie operation. As a start up company, there are huge benefits when you choose to lease or even finance the needed capital fixtures for your operation. Cash flow will be easier and and rates nowadays are competitive. Have a good business plan before you venture out there but never give up!
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I am in the process of starting up a a new lingerie company which will initially be on line.
I have written down as many start up costs I can and I am wondering if there are any other
hidden cost for starting up business in the lingerie industry. Things that you never thought
you needed to include.
Everyone says how is is so cheap to set up an online company. True it is cheap to set up, but let me ask you this, once you do have an online presence how are you going to make people aware of your site and product and how long will it take to drive enough traffic to the site to make a profit? That is the trick. If you can't answer that, then you need to rethink your plan.
online businesses are cheap to set up. Domain name and web hosting is all you need. If you are selling a product then it is more complicated because you will need stock but if you are selling a service or software then you need to be able to market it so that people buy.
Other costs are ongoing but still cheap ie. electricity, broadband etc but these are mainly low costs and covered by you at home anyway.
Wish you business runs smoothly!
Best of luck for your industry. No need to worry about the customers, just focus on your staff to hire and expenditures on security. You can now entertain and help your customers by adding live chat service to your website. This live chat customer support service helps you to make your business run better as you can answer your customers queries 24hours online.
One of the big advantages of running an "online business" is the low-cost of setting up, operating and maintaining one. As others have mentioned, the only real costs required to get started are domain and hosting ($75-$100 per year). If you can't build the website yourself, obviously you have to pay someone for that (could range from $800 to $5000+ depending on the complexity). Checkout services like Guru.com, eLance.com or ODesk.com. You only need one, but these websites will allow you to post a job and multiple companies / developers will bid to build your website.
Other than setting up the website, it seems like the biggest cost will be inventory. Obviously, whatever you provide on your website will need to be kept in-stock. If you partner with a larger lingerie company, maybe they can dropship orders for you? This would reduce the cost of your inventory. Or, you could look into "affiliate marketing" and get paid a commission for promoting and selling other people's lingerie products.
After the website is taken care of and you have your product situation figured out, marketing will be the other big ongoing cost. There are a variety of ways to do this, but if you have no experience, you might consider hiring a professional to run an ad campaign and do SEO (search engine optimization). If you want to save some money -- do all this yourself! It will take some time to learn, but all the information is available online for FREE! Start studing "SEO" and learn about "PPC advertising". You just have to search ;)
There's a lot to learn and consider, but hopefully this helps a little. GOOD LUCK!