One of the biggest reasons businesses fail is running out of money before they become profitable. A solid startup budget helps you plan realistically, avoid surprises, and make smart decisions about where to invest your limited resources.
What to Include in Your Startup Budget
Your startup budget should cover both one-time costs (things you pay for once to get started) and ongoing costs (things you'll pay monthly or regularly).
One-Time Startup Costs
- Business Registration: $50-$500 (varies by state and structure)
- Website & Branding: $0-$5,000 (DIY to professional)
- Equipment & Tools: $500-$10,000 (depends on business type)
- Initial Inventory: $0-$20,000 (if applicable)
- Legal & Professional: $500-$3,000 (contracts, accountant setup)
- Licenses & Permits: $100-$1,000
Monthly Ongoing Costs
- Software & Subscriptions: $50-$500/month
- Marketing & Advertising: $100-$2,000/month
- Insurance: $50-$500/month
- Professional Services: $100-$500/month (bookkeeper, etc.)
- Office/Workspace: $0-$2,000/month (home to coworking)
How to Estimate Costs Realistically
- Research actual prices — Don't guess. Get real quotes and pricing.
- Add a buffer — Things always cost more than expected. Add 15-20%.
- Plan for 6+ months — It takes time to generate revenue.
- Separate needs from wants — What's essential vs. nice to have?
How to Avoid Overspending
- • Start lean — Only buy what you absolutely need to launch
- • Use free tools first — Upgrade when you outgrow them
- • DIY where possible — You can learn basic tasks yourself
- • Avoid long-term commitments — Monthly plans until you're sure
- • Track every expense — Know where your money goes
Sample Budget for a Service Business
Here's what a realistic startup budget might look like for a consulting or service-based business:
| Category | Amount |
|---|---|
| Business Registration (LLC) | $200 |
| Website & Domain | $500 |
| Professional Templates | $150 |
| Software (6 months) | $600 |
| Marketing (6 months) | $1,200 |
| Insurance (6 months) | $300 |
| Buffer (15%) | $443 |
| Total | $3,393 |
Download the Budget Template
Get our professional Startup Budget Template to plan your finances properly.
Get Budget TemplateThe Bottom Line
A realistic startup budget is one of the most important planning tools you'll create. It helps you understand how much you need to launch, how long your runway is, and when you need to start generating revenue.
Don't let financial surprises derail your business. Plan carefully, start lean, and track everything.