Let me start with my famous no-nonsense answer...Making the leap from employee to business owner takes a lot of planning and of course that dreaded question I'm answering now, how much it will cost you to get up and running.
The actual numbers will vary, depending on the type of business you have in mind, It is very important that this calculation is right as you could find yourself coming up short, its a good idea not to over invest. If your big idea is more a home-based sole trader business or a low-cost franchise, you could potentially be up and running for anywhere from $1,000 to $5,000.
Knowing your correct number will help you understand what needs to happen for you to break even, from here then you simply scale your business up.
Knowing your numbers
Lets start with the term “startup cost”, this refers to how much you’ll need to cover before the business begins generating revenue. And they generally fall into two categories: Expenses and Capital.
Expenses are the costs of your advertising and getting the business ready such as Market research, business cards, letterhead these are just a few examples.
Capital Expenditures are the one-time costs, for example, inventory, vehicles and/or buildings.
If, for any reason, you start launching your big idea and then decide not to, none of the expenses incurred along the way will qualify as deductions, as in you can't claim anything back from your accountant because these expenses would be classified as non-deductible or “personal costs.”
So to answer the question how much money will you need? You must decide first on the size of the business and don't over invest using the examples I have shown you above.
Hope this helps guys