What Will Your Budget for Opening the Store Be?
The costs of selling online
A big part that will determine what you sell and how you buy the items will be how much you will be able to spend on them. If you have a decent amount of cash, wholesale is usually the way to go, but if you don't, you may just want to buy on a smaller scale to start with until you make some sales and then move up to buying wholesale. There are also many options at your local discount stores if you take the time to look around. Stores like Big Lots and Dollar General (these stores aren't located in all states, but there are similar stores in most states) have some great deals that you can turn around sell for a profit. You may be wondering why people would pay more for something they could get for less at these stores themselves, however many people don't shop at these stores and don't know these deals are available, or don't want to take the time to shop for a deal. So don't feel bad for marking the price back up, in the end, the customer agrees to pay the price you set, and this is how most people make money; that's how business is done.
Products aren't the only thing you need to factor in to the equation. You will have the website hosting costs, monthly maintenance fees on additional feature, packaging and shipping, phone calls and faxes you need to make, possibly the rental of a mailbox to receive mail somewhere other than your home address, business cards, logo design and much more. It depends on which route you take, where and how you want to sell, and how much advertising and time you want to put into the online store. Although it is online, there are still many things that a traditional store would do, that you will also want to do (such as handing out business cards, putting out fliers, etc). There are many resources both online and locally that can help you determine what you will need. Business Know How has an online calculator for business startup costs. Most of the tools out there cater to opening an actual physical store, but you can just leave out the aspects specific to that when you are using the calculation tool. A couple of other great sites for information are:
Another thing to keep in mind is that there are options for you such as small business loans. Even though your store may be online only, you are still a business! There are many programs geared toward small businesses, as well as particular programs for women, veterans and minorities wishing to start a business. Not only are there loans out there for small business', there are also grants, which is money that does not need to be repaid! You can start with The Small Business Administration website, which gives alot of information about starting a business, free online courses, as well as information on local offices where you can get help!
