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Twenty years ago, this wasn’t just a self-limiting belief—it was a reality for the vast majority of entrepreneurs. There were tremendous fixed costs in starting a business, such as leasing and equipping office space, purchasing plant and equipment assets, covering material and inventory costs, and hiring employees, not to mention numerous legal and regulatory hurdles.

In the last two decades or so, these costs have been either eliminated or largely mitigated. The typical twenty-first century startup doesn’t require any of the above items. There are many businesses you can literally start right from your laptop while sitting in your local Starbucks.

This doesn’t mean that you won’t require any funds. There are certainly costs associated with the startup process. Depending on the type of business you want to operate, your startup costs can run into a few thousand dollars, spread over time. Your baseline needs will include the following:

1 ConnectivityA laptop, cell phone, and good internet connection are a must. (You probably already have these anyway, right?)

2 RegistrationIncorporation, along with state registration, incurs some basic legal fees. A lawyer is usually not necessary for a startup in the earliest stages, but if you are unsure about your needs or the specifics of your industry, contact a lawyer who specializes in incorporation and business law.

3 A Web PresenceA web presence has never been easier to establish or more necessary for modern businesses. Collectively, your web presence refers to your domain name, web hosting, and website. Vendors who offer these services make it easy to establish a web presence for your business even if you have no technical experience.

4 A Graphic IdentityThe graphic identity of a business is the sum of that business’s visual design elements such as logos, business cards, visual messaging, color palette, and visual themes.

5 A Social PresenceYour web presence can be a two-way communication tool, but nothing beats social media for creating a dialogue with your customers. Now more than ever, consumers expect that the brands they do business with will have a social presence. This is true even if your business doesn’t sell a “sexy” product. Social media accounts for businesses are usually free, but they can incur cost in the form of content production, management, and management software that reduces the time requirements that an active social media presence can produce.

Here are some things you think you will need, but probably won’t:

1 A phone service or answering service

2 A lawyer, accountant, marketing agency, or other high-priced professional service provider

3 A retail storefront, inventory, or storage space

4 Employees

Of course, there are many businesses, such as restaurants, retail stores, gyms, etc., that will require significant up-front funding. In the case of those types of businesses, you need to think carefully about where this money will come from and whether this is the right kind of business for you. This will be discussed at much greater length in chapter 4.