Startup Costs: Crm Business
How much does it cost to start a CRM business? The average starting costs are $17.8K.
If you are planning to start a CRM business, the costs are relatively low. This of course, depends on if you decide to start the business on your own or bring on a big team at first.
We’ve outlined two common scenarios for “pre-opening” costs of a CRM business and outline the costs you should expect for each:
- The estimated minimum starting cost = $1,015
- The estimated maximum starting cost = $31,100
The average starting costs are $17,782.
| Startup Expenses: Average expenses incurred when starting a CRM business. | Min Startup Costs: You plan to execute on your own. You’re able to work from home with minimal costs. | Max Startup Costs: You have started with 1+ other team members. |
|---|---|---|
| Employee & Freelancer Expenses | ||
| Payroll: This number depends on if you decide to pay yourself a salary upfront and how many employees you have on payroll. At first, many founders take on all responsibilities until the business is up and running. You can always hire down the road when you understand where you need help. Keep in mind, if you do plan to pay yourself, the average salary founders make is $50K. | $0 | $4,000 |
| Total Employee & Freelancer Expenses | $0 (min) | $4,000 (max) |
| Equipment & Supply Expenses | ||
| Technology Office Equipment: This includes (but is not limited to) physical items such as: laptops, cameras, monitors, microphones, speakers, headsets. Technology needs grow as your company evolves, so to minimize costs, try and only purchase what is needed for you to run your business at the time. | $500 | $5,000 |
| Total Equipment & Supply Expenses | $500 (min) | $5,000 (max) |
| Website Costs | ||
| Website builder: The cost of your website will vary depending on which platform you choose. There are many website builders on the market, so it's important you choose the right one for your business and overall goals. To learn more about your options + how to build a great website, check out this article. | $15 | $100 |
| Web Designer: If you have the necessary skills to design your website, then it may not be necessary for you to hire someone. However, if you do decide to go that route, make sure you establish an understanding of upfront cost, design and what the ongoing costs will be to manage the site. Here is what to expect when hiring a web designer. | $0 | $6,000 |
| Total Website Costs | $15 (min) | $6,100 (max) |
| Office Space Expenses | ||
| Rent: This refers to the office space you rent out for your business. To minimize costs, you may want to consider starting your business from home or renting an office in a coworking space. | $0 | $2,000 |
| Total Office Space Expenses | $0 (min) | $2,000 (max) |
| Business Formation Fees | ||
| Small Business Insurance: Depending on which state you live in and the business you're operating, the costs and requirements for small business insurance vary. You can learn more here. | $500 | $2,000 |
| Total Business Formation Fees | $500 (min) | $2,000 (max) |
| App Development Fees | ||
| Developer Costs: If you plan to outsource a developer, the cost is typically around $60-$100 per hour. Depending on the scope of your project and hours allocated to this freelancer, the cost can vary. If you have the ability to code, you may want to consider taking this responsibility on to minimize costs. | $0 | $12,000 |
| Total App Development Fees | $0 (min) | $12,000 (max) |
| Total Starting Costs | $1,015 (min) | $31,100 (max) |
Want to start a CRM business?
