While getting started, you will likely keep your present job, and it may make sense to work from your home. Even so, you still need an "office," including stationery, invoices, business cards, and possibly brochures to be handed out wherever you happen to be. Costs here are the same as in an offline business, and will be a function of your needs.

Don't overlook software. If you want to do some of the graphics for your site, Paint Shop Pro at $99 is a good value. For your accounting, Quicken is good. For mail list handling and personalized mailing, including emailing, Easy Mail Plus at $50 is an excellent choice.

Then there are other things, such as supplies. Printers chew up enormous gobs of paper. For competitive prices on consumables, try Office Depot. Call 800-463-3768 for a free catalog.

A Phone Is A Must

An email address is not enough. You need a phone and someone to answer it. Even if you expect to receive few calls, this is a must. People often call just to see if you're for real. If there's no phone, you've lost a sale. Some argue that voice mail is a reasonable alternative, but it will not help if you can not get back quickly. If you have a spouse who can answer, go for it. If not, find someone in your area who can take calls as your secretary. If you provide up-to-date information about your business, your "secretary" can often save you the need for a later reply. Further, there is simply no less expensive way to appear to be working the business full time.

Where We're At

The above is not the whole of it. For example, there has been no mention of search engines, yet good positioning can make a big difference. Again, if you know how to optimize pages and can do so easily, it is worth your time to do so. If not, hire it out. Writing skills are important. If yours aren't so hot, factor in some cost for editing, or even creating both page content and the advertising message behind all. Good service is available at $25-$50/hour.

You must add up these costs relative to your particular needs. But it is unlikely you can start a serious online business for less than $500 to $1000, even if you do all the work yourself.

Time Cost Analysis

Starting any business means commitments in time you can not expect to recover except over the long run. So good cost analysis is difficult initially. Even so, put a dollar value on your time, perhaps as low as $5/hour, to help you make good decisions about how you will use your time. Even at $5/hour, it will be clear that some things should be hired out.

Building web pages with HTML when you could be generating leads may not be the best use of time. Reading a book or two about how to work the Web can be very helpful, but sometimes it's more cost effective to buy the information needed.

Working harder is often the only option available. But when possible, work smarter, which often means hiring services. In the end you'll have more fun and rake in greater profits sooner.