What does it REALLY cost to start a creative business?
So you want to start a business huh? Owning a creative business can be so fulfilling after all you are getting paid (hopefully) to do what you love and you can control your own schedule which are both definite wins!
However the road to a profitable business is often a lot longer and more expensive than new business owners realize as there are a lot of costs that go into getting your business off the ground. In this week’s video I am breaking down the numbers and giving you an idea of what to expect with you invest in starting a creative business.
Before we get too deep into the content I want to give the disclaimer that it truly depends on the business. The numbers I share are going to pertain more to solo creative businesses or online businesses because that’s the world I’ve been working in for 10 years and I consult with many creative and online business owners.
Many people think that in starting a small, creative, online business that they can do it for very little money. Of course there might be a few folks who get lucky and have created a hugely successful profitable business by investing only $100 but for the majority of business owners, that’s impossible. You will have to invest both time AND money to get your business off the ground.
The more money you invest, the less time you’ll have to invest. And the more time you invest the less money you’ll have to invest. So if you’re planning to keep your money in your pocket and not spend them on your business, you should plan on it taking awhile to get things off the ground.
On average a business takes about 3 years to become profitable. 3 YEARS. I know so many creatives that start freaking out 3 months in that they aren’t making all the money. 3 YEARS. And on average it takes a small business owner 5 years to earn a living. And that might be a very basic living. So it’s important to have reasonable expectations around how long it could take to become profitable. It doesn’t happen overnight and that can be REALLY tough for a lot of dreamers to hear. If you want to dive into the actual numbers with me, check out the video above.
And be sure to grab my FREE Guide: The Ultimate Start-Up Costs for Your Business where I break down all the various cost categories FOR you.