It depends on the business. A solo service business that uses tools you already own can start for under $1,000, while one that needs a vehicle or heavy equipment can cost tens of thousands. ProfitDrawer's startup guides show example budgets of about $550 to $3,500 for a solo cleaning business and $34,000 to $148,500 for a used food truck. The SBA suggests listing one-time costs and at least one year of monthly costs before you spend.
The SBA splits startup costs into two groups:
- One-time costs: equipment, licenses and permits, a deposit, signage, first inventory.
- Monthly costs: rent, insurance, phone, fuel, salaries. The SBA says to count at least one year of these, and five years is ideal.
Example ranges from ProfitDrawer guides (example budgets only, your costs will differ):
| Business | Example startup budget |
|---|---|
| Solo cleaning business | $550 to $3,500 |
| Lawn care business | $1,200 to $13,900 |
| Vending (one to two machines) | $2,200 to $9,400 |
| Used food truck | $34,000 to $148,500 |
Registering the business is usually a small part: the SBA says the total cost to register is usually less than $300, with fees that vary by state and structure. An EIN from the IRS is free.
The SBA also suggests working out your break-even point (fixed costs divided by price minus variable cost per unit) and adding about 10% for costs you did not predict. The free startup cost calculator adds up one-time and monthly costs and shows how long your cash lasts.
Source: Calculate your startup costs (U.S. Small Business Administration) · Updated
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General information, not tax, legal or financial advice. Check the rules for your state and your situation.