Thinking about what type of business to start?
Here are some of the different expenses in an online business versus a brick-and-mortar business:
Online business
- Website hosting: This is the cost of renting space on a server to store your website’s files.
- Domain name: This is the address of your website on the internet.
- E-commerce platform: This is a software program that allows you to sell products and services online.
- Payment processing: This is the service that allows you to accept credit card payments on your website.
- Marketing: This includes advertising, social media marketing, and search engine optimization.
- Shipping: This is the cost of shipping products to customers.
- Customer service: This includes answering customer questions and resolving any problems they may have.
Brick and mortar business
- Rent: This is the cost of leasing space for your store.
- Utilities: This includes electricity, water, and gas.
- Insurance: This protects your business from liability in the event of an accident or theft.
- Employees: This includes salaries, benefits, and training costs.
- Marketing: This includes advertising, signage, and promotional materials.
- Supplies: This includes inventory, office supplies, and cleaning supplies.
- Maintenance: This includes repairs, cleaning, and upkeep of your store.
As you can see, there are many different expenses involved in both online and brick and mortar businesses. The specific costs that you will incur will depend on the type of business you are running and the size of your operation. Use our cash flow tool to help you determine your costs, revenue and profitability.