Starting an online business or program is done like any other normal business only that with online there are those key costs that one puts in mind before starting and thereafter in the running of the business. Most people tend to check on viability of the business before even thinking of the running costs. Although viability is a number one element in setting an online program it should not be used to calculate the set up and running costs. If you calculate your initial and ongoing costs of setting up a program based on chances of success you are doomed to failure.
The following three cost factors should be first on your list as you calculate your startup costs. These are initial costs and should be distinguished from the ongoing running costs.
1. Sales and Marketing costs
These are the costs that will be spent on equipment like electronics, furniture and then marketing costs will be spent on advertisement and creating awareness of your program. For example having to pay Google and yahoo to advertise your program on their sites.
2. Costs on Technology
These are the costs that will be spent on service providers like internet and web connectivity providers.
3. Professional Costs
These are the costs that will be spent to pay comparables who are already successful in your kind of business for their professional assistance. Their goals can be used as targets to aim at.
4. Management Costs
These are the costs spent on the set up of a proper administrative system for smooth operations. Lastly, Ongoing costs are as costs on rent, wages and salaries, electricity bills, operating license, and miscellaneous expenditures like repair of office furniture amidst others.