Registering with the Chamber of Commerce (KvK)

The first formal step is registering with the Chamber of Commerce. The one-time registration fee is currently €80.10.

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Legal Form and Establishment Costs 📃

For a sole proprietorship, you will only have the registration fee. If you are starting a limited liability company, additional notary fees will apply, as the incorporation deed must be prepared by a notary. Notary costs range from €500 to €1,500, depending on the firm and the complexity of the deed.

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Administration and Accounting

To keep your administration in order, many (small) entrepreneurs opt for online accounting software. This costs about €20 to €30 per month. The larger your business, the higher the software costs will be. You will also need to account for the costs of a business bank account, and possibly an accountant or bookkeeper to help with taxes and financial management.

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Inventory and Equipment 📦

Depending on your industry, you may need to invest in inventory, equipment, or tools. For example, if you are starting an online store, you will need to invest in products, packaging materials, and storage. If you are opening a restaurant, you will face expenses for kitchen equipment, furniture, and possibly renovations. These startup costs vary significantly based on the type of business you are launching.

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Example 1: Freelance Copywriter
Suppose you are a starting freelance copywriter working primarily from home. Your startup costs will remain relatively low. You might need a new laptop, which is approximately €1,000. Additionally, you will subscribe to online accounting software for €25 per month, get a Microsoft Word license for €7 per month, and set up a small home office with a desk and chair for around €300. Registering with the Chamber of Commerce will cost €80. In total, your direct startup costs will amount to approximately €1,400 to €1,500. You might also rent a co-working space or book a meeting room occasionally, but these expenses will be limited.

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Permits

Some businesses require a permit, such as those selling alcoholic beverages or running a hospitality venue. These costs vary depending on the municipality and the type of business.

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Marketing & Networking 🤳

To attract customers, you will often need to invest in marketing in the beginning. Consider building a website (€500 to €2,000 for a simple site), printing business cards, or running ads on Google Ads or social media. These costs are optional but can be necessary to gain exposure quickly. The same applies to networking costs, such as joining a networking organization.

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Insurance

As an entrepreneur, you are responsible for your own insurance, such as liability insurance or disability insurance. These are not mandatory but are highly recommended. Liability insurance typically costs a few dozen euros per month, while disability insurance premiums can easily amount to several hundred euros (depending on your age, occupational risks, and coverage).

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Other Costs

There are also smaller expenses that can add up. Think of office supplies, transportation costs, software licenses, or memberships in industry organizations.

Example 2: Food Truck
Suppose you are setting up a limited liability company to sell luxury street food from a food truck. Besides notary fees for incorporation (around €500–€1,000) and the Chamber of Commerce registration (€80), you will need to make significant investments. A professional food truck with kitchen equipment might cost €20,000 to €50,000. Inventory and ingredients for your first events could cost €2,000 to €3,000. Add to that a POS system (€500–€1,000), a website and branding (€1,000–€2,000), permits, insurance (several hundred euros), and accounting services (€1,000–€2,000 per year). In total, your initial investment could easily range from €25,000 to €60,000.

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Taxes

While taxes are not direct “startup costs,” you will need to file VAT returns quarterly and pay income or corporate tax annually. However, the costs you incur while starting your business can be deducted from your taxes. It is wise to set aside money for future tax payments upfront to avoid unexpected tax bills.

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Mapping Out Business Startup Costs 🧑💻

The costs of starting your own business vary greatly depending on the legal structure, industry, and personal choices. By preparing a detailed budget in advance, you can better estimate how much startup capital you will need. It is also wise to account for unforeseen expenses, lower-than-expected revenues in the early months, and the time it might take for your business to become profitable. Overestimating is better than underestimating.

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Grassfeld: Set Savings Goals

Dreaming of starting your own business? Grassfeld helps you achieve that dream. Once you know how much money you will need, the app assists you in reaching that amount. By setting a savings goal and a deadline, it calculates how much money you need to set aside each month.

Additionally, Grassfeld helps you gain insight into your finances by categorizing your expenses and providing weekly financial reports. This way, you can quickly identify areas where you can cut costs, save more money, and reach your savings goal even faster. Download the app now from your app store and start saving for your own business!