How much does it cost to set up a small business?

Technically it may cost next to nothing - if you plan to operate under your own name (i.e as a sole trader) and if your service offering doesn't require any special tools or equipment, then it's fully possible to set up and launch your small business venture for just a few hundred dollars, much of which could be spent on printing out flyers or business cards. (And if all you have is a few hundred dollars then that might not be such a bad strategy.)

However the problem with such a lean startup is that it will almost certainly restrict your newly set up small business from growing effectively to its full potential. There are also liability issues to consider, and of course the tax effectiveness of the business structure shouldn't be ignored.

So the question to ask your business advisor could rather be: "Considering the funds I have available for the start up of the new business, and the time and other resources which are available to me - what are my best options?" There will usually be more than one alternative, and the key is to decide on the one most likely to deliver an optimal result.

It's incredible how much money can potentially be saved simply by getting the right advice before setting up your business. Before obtaining advice on your start-up, you first need to ask yourself some tough questions, and try to answer them as specifically as possible:

What exactly is the product or service that my business is going to sell?

Do I already have what I need (skills, expertise, tools, materials etc.) to deliver this service to a high standard?

Is there already a market for this product? Or am I just assuming that there will be customers out their willing to pay for what I'm trying to sell?

How much money do I have available to invest (or lose) before my business needs to become profitable?

Will I need to draw a personal wage or allowance from the new business, now or later?

Who are my most obvious competitors? How will my business manage to outperform them?

How much time am I willing to invest?

It's extremely rare for a new business to survive and thrive without expert advice, combined with a sustained and disciplined effort by its founder(s).