How Much Does It Really Cost To Run A Business?

Are you spending too much or too little in your business? Find out how much it actually costs to run a business and if your costs compare....

Bootstrappers will tell you that you can run a business on a cost comparable to the smell of an oily rag.

Many small business owners will tell you that they don’t need to charge much due to their “really low overheads”.

The truth is, most people simply don’t know what it costs to run their business.

And that’s because they haven’t taken the time to analyse it, which can be really dangerous.

I've been helping people nail their pricing for a long time now, and I can tell you - running a business is likely to cost more than you think!

Especially if you actually want it to grow and be sustainable for you to run.

So, how much does it actually cost to run a successful business?

Let’s find out, shall we?

Why You Need To Know Your Numbers

Knowing the costs in your business is an important part of ensuring you are creating a sustainable and profitable business model.

If your costs are consistently higher than your earnings, then your business is not going to last very long!

But, how much does it REALLY cost to run your own business?

It’s a topic no one really wants to talk about.

We brush it off, saying we have “low overheads” or that we are “bootstrapping” our way through the first few years, or we’re simply “reinvesting everything”.

Unfortunately, even as a solopreneur working from your kitchen bench, running a business ain't cheap!

It's not until you actually sit down and do your numbers (or worse, DON'T do your numbers, but just find there's never any money left in the bank account!) that you discover just HOW expensive it can be.

The problem is, if no one talks about it, how are you supposed to know if you are spending too much? Or not investing enough?

The Actual Costs

OK, it’s time to talk about it now!

You might think that you can get by on “the smell of an oily rag”. But in reality, the costs involved with running a business are more comparable to a silk scarf or some Egyptian cotton!

I can almost guarantee that running a successful business is always going to cost more than you think it is going to.

Ready for it?

Having worked with over 150 solopreneurs and small businesses across NZ, Australia and the US, I can tell you the average running costs for a solopreneur service business can range from $20,000 - $80,000 a year (excluding taxes).