One-Time Costs / Setup Costs

(From the tutorial, Planning Your Internet Business: Startup Costs and Sources of Funding)

These are expenses you'll incur just trying to get your business set up so that you're ready to start earning money online. Don't go crazy buying everything all at once; you can always add things as you go along, depending on your needs. Get enough so that you can work productively and reliably.

Computer. You probably already have one. If not, then get a good computer that will serve your current and projected short-term future needs well. Don't go for extravagant high-priced features unless you truly need them. Remember that computers become obsolete very quickly!
Computer accessories such as a printer. One thing that's often overlooked is backup storage -- for example, an external hard drive or a USB Flash Drive can both be used to store important data "off-site", so if your computer crashes, you don't lose everything.
In case of a power outage or power spike, consider also getting a UPS, or Uninterruptible Power Supply. This is essentially a big battery that charges while it's plugged into an electrical socket. If power goes out, you have enough time to finish up what you're doing and safely shut down your computer.
People who live in rural areas that may have frequent power outages might consider using solar power as a backup instead. A small solar panel system could charge up a battery enough for you to continue your work, and the battery continues to charge while the sun is out too. Plus it's environmentally-friendly!
Office equipment. For example, a phone, fax, and voice mail system are common purchases.
Installation or setup fees. Examples include the installation of an additional phone line, or installation of fixtures such as extra lights, desks, computer equipment, etc.
Anti-virus software. A virus is a malicious program that may be annoying but relatively harmless, or it may be serious enough to cripple your computer and prevent you from doing any work! Viruses can end up on your machine through an email attachment or when you download something off the Internet. New viruses come out all the time, so you should always have an up-to-date virus scanner constantly running on your computer. There are many virus scanners available, and many computers come pre-installed with one. Some of the more popular are:
- Norton Anti-Virus
- AVG AntiVirus
- Kapersky
A firewall. A firewall helps to protect your computer from unauthorized access (eg. hackers). This is especially important for people with DSL or cable modems. One such firewall is Zone Alarm. You can also purchase a piece of hardware called a router with a firewall (ask at your local computer store).
Spyware and adware remover. Get rid of software that places unsolicited advertising on your machine, or tracks and transmits your surfing habits and other information without your permission. Many spyware and adware removal programs are available, including some for free. Two such programs are Ad-Aware and Spy Sweeper.
Email Software. Most new computer systems come pre-installed with email software - usually Microsoft's Outlook Express program. This is adequate, but there are better choices. Outlook is also often the target of malicious email viruses. Why not switch to a different program that can offer better peace of mind? Eudora and Pegasus are a couple of alternative email programs with great reputations.
HTML Editor. You don't actually "need" an HTML editor; you can create your web pages using Notepad if you like (the free text editor that comes with Windows). However, HTML editors have convenient features and lots of flexibility for people who want it.
- Arachnophilia is a free HTML editor that's received many rave reviews. It's popular with many "beginners".
- CoffeeCup is also popular and reasonably priced.
- HomeSite is great for people who like to write their own HTML, have complete control over the look-and-feel of your site, and who want maximum flexibility. A free trial is available.
Website design and development. I strongly believe that it's a good idea to learn the basics of HTML so that you don't have to rely on a webmaster to make simple changes for you. Remember, too, that the funds spent hiring a good web designer are funds you no longer have for the many other things you need as a new business!
A good alternative is the Site Build-It software. This popular and effective "all-in-one" tool provides you with a host of web design and promotion tools, so you can concentrate on doing business rather than struggling with "technical" stuff (you don't need to know HTML, although you can upload your own pages if you like). It's a great choice and very well priced for all the extras you get. I own a couple of SBI packages myself.
Note: SBI is not a one-time cost, it's an annual subscription. For that, you get a domain name, website hosting, website building tools, automated submission to search engines, all sorts of reports, brainstorming tools, customer support, support forums, and more. Take a look.
Product research, design, and development. If you plan to create a product of your own you will need to do the necessary market research, then the actual creation of the product (note: some people prefer to promote affiliate programs instead, or purchase the resell rights to a product). Be sure you are familiar with the restrictions or regulations that govern the types of businesses you can run from your home, and in your area.
Product materials and supplies. This includes anything you need to purchase in order to create your product. For example, someone who creates an eBook needs an eBook compiler; a business that sells newsletter subscriptions needs to get quotes from a printer; a person who sells personalized chocolate bars needs a printer, toner, the chocolate, and the software and paper required to create the wrappers.
Permits, licenses, and company registration fees. Check with local authorities for costs and instructions. Your local tax office may also be able to offer help for small/home business owners.
Home office furniture. A computer desk, chair, adequate lighting, and perhaps also an additional working surface (for when you're doing stuff by regular 'ol paper & pen) and a filing cabinet are sufficient for many home business startups. Check your local auction houses for great deals on office furniture and supplies.
Office supplies. Stuff to get you started - all the usual paper, pens, etc. plus a notebook where you can record ideas, issues, interesting sites, and so on.
Professional fees. You may wish to consult with accountants, bookkeepers, lawyers, and others before you launch your business.
Ad tracking software. This is probably one of the most overlooked parts of building an online business. Tracking software "codes" your URLs so that you know which ads are working best, and which ones aren't working very well at all. It allows you to refine your ad copy, target your audience better, discard marketing campaigns that aren't working, and concentrate on those that are.
The cost for tracking software varies widely. Some sites will charge a monthly or annual usage fee; others sell their software for a one-time fee.
Website stats. A good stats program helps you to understand your visitors and your traffic - you'll be able to see how many page views you get, number of unique visitors, where they're coming from, which pages they view, and more. Some web hosts include a decent stats program; otherwise there are many available to choose from.
Setup fees for credit card processing. It is vital that you accept credit card orders online - credit cards are popular, convenient, and without them you'll lose a lot of "impulse-buy" customers as well as those who just don't want the hassle of writing a check and dropping it in the mail. Third-party credit card processing companies, a great option for fledgling businesses, often charge a small setup fee to review and activate your account.
Miscellaneous expenses. Everything else that doesn't fit into the other categories!
Unanticipated expenses. It's pretty hard to think of everything you might need as you're getting started. This category is for stuff you need but didn't plan to purchase. Plan to budget an extra 10-20% to handle the unexpected.

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