The cost of starting a new business is contingent on a host of variables unique to each startup, but prospective entrepreneurs can expect to spend a substantial sum to get a business off the ground. However, that sum may not be as considerable as first-time entrepreneurs anticipate. Utilizing data from the U.S. Census Bureau, researchers at LendingTree estimate that 21 percent of business owners launch their venture with less than $5,000. Those costs vary widely by industry.
For example, LendingTree researchers note that the average new construction firm needs just under $68,000 to get started, and 50 percent of such firms began with less than $12,390. Starting a firm that specializes in the management of companies and enterprises, which includes firms that hold securities or equity interests of another enterprise, required considerably more funding at startup.
LendingTree researchers estimated that the average business in that industry required roughly $441,000 in startup funding. Such disparities highlight the significance of determining startup costs prior to beginning a venture. The Small Business Administration notes that startup costs can cover a range of expenses, including office space, equipment and supplies, utilities, insurance, advertising, and marketing.
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