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Start-Up Costs for an Online Business

Starting a new online business may not have as many start-up costs as a brick and mortar business does, but it still has some costs.  If you can work out of your home, you won’t have to rent a building or deal with any of the costs associated with it, and you may not need to invest in flyers, magazine ads, or other forms of offline advertising.  Here are some of the things you may need to invest in to start your own online business.

•    A fast internet connection.  Since you’ll be doing everything online, you’ll want a secure, reliable, fast internet connection.  You’re definitely going to have to have more than dial-up.

•    Software.  You may need to invest in a website building program like DreamWeaver, and you may need a graphics program if you plan on making your own website banners and such.

•    Server space.  You’ll need to either have a dedicated web server to host your files on (and this brings up other costs, such as a static IP address and software for your server), or you’ll have to pay for server space each year.

•    Your website domain name.  You’ll need to reserve your website address.  Sometimes this is included with your server space, but sometimes you have to purchase it separately.

•    Online advertising.  Many times, you can find places to advertise your online business for free, but there are some times you may want to pay for advertising.

•    Your business registration.  Even though it’s an online business, you still need to register as an official business.  Often, there are some start-up fees involved in this, and there are some reoccurring fees you have to pay each you.  The amount varies from location to location, however, so you will need to look into the costs in your area.

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