A guide to business startup costs

Starting a business is an exciting milestone—and often the result of big ideas, late nights and careful planning. But before your first sale or customer, there’s one key step that can shape your long-term success: understanding your startup costs. 

From one-time expenses like equipment to ongoing costs like rent and payroll, knowing what to expect—and how to plan for it—can help you avoid surprises, stay on budget and fund your business with confidence.

What you’ll learn:

• Startup costs include both one-time and ongoing expenses that keep your business running day to day.

• Estimating your startup costs can help you create a more accurate budget and sidestep financial surprises.

• Tracking spending, using the right tools and planning for hidden costs can make your money go further.

• Building in flexibility and setting aside cash reserves can help you adapt as your business grows.

Every new business faces expenses—but not all costs are created equal. Understanding the difference between one-time startup costs and ongoing operating costs can help you build a smarter budget from day one. Breaking them down early can make it easier to plan, prioritize and manage your resources as you launch and grow.

One-time costs are the initial investments needed to get your business off the ground. They typically happen before you open your doors—or shortly after—and don’t occur month to month.

They usually include expenses like:

• Equipment purchases

• Website development

• Business registration fees

• Initial stock

These costs can look very different from one business type to another, so being thorough when identifying them can help you avoid early cash flow issues.

Once your business is operational, ongoing operating costs are the business expenses you’ll need to cover regularly to keep things moving. These can include:

• Rent

• Utilities

• Software subscriptions

• Employee wages

• Marketing

Unlike one-time costs, these expenses are part of your monthly rhythm—and they play a big role in reaching your break-even point and maintaining long-term sustainability. Building a clear picture of your recurring expenses early on can help you stay in control as your business grows.

Factoring in a few months of these recurring costs when building your startup budget can give your business a stronger financial cushion as you get up and running.

Estimating your startup costs doesn’t have to feel like a guessing game. By breaking the process down into simple steps, you can get a clear picture of what you’ll need to spend—and avoid surprises down the road. First, look at what similar businesses in your industry typically spend. Then, build a budget that fits your unique goals. And don’t forget to account for those hidden costs that can often catch new business owners off guard.

One of the best ways to get a realistic estimate of your startup costs is to research how much other businesses in your industry are spending. Industry benchmarks can provide a helpful reference point, giving you insight into common expenses and typical price ranges. You can generally find this information through industry reports, small-business associations or by talking with other entrepreneurs. Using these benchmarks as a guide helps ensure your budget is grounded in real-world expectations—not just guesses.

Once you’ve gathered benchmark data, it’s time to build a budget that reflects the specific needs of your business. 

Start by listing all your expected expenses—both one-time and ongoing—and organize them by category, like marketing, equipment or rent. Be as detailed as possible, even if some numbers are rough estimates. A clear, organized budget doesn’t just help you plan—it can also make it easier to apply for funding and track your progress as your business grows.

Some expenses are easy to overlook when you’re focused on the big-ticket items. But small unexpected costs can add up quickly—and strain your budget if you’re not prepared.

Think about potential costs such as:

• Permit and license fees

• Insurance

• Software fees

• Initial marketing campaigns

Even time-related costs, like onboarding, can impact your bottom line. Building in a buffer for these hidden expenses can help you stay flexible and avoid financial surprises.

Starting a business doesn’t have to mean spending big from day one. With tools like business credit cards that earn rewards and smarter ways to manage expenses, small changes can make a big difference. And when your team is set up to spend responsibly, it can be easier to stay on track—both financially and operationally.

Using a business credit card can be a practical way to cover startup expenses—while earning rewards on every dollar you spend. Whether you’re booking travel, buying supplies or covering software subscriptions, certain cards offer cash back or travel benefits that can add up quickly.

Some business cards also offer welcome bonuses, flexible redemption options and the ability to earn rewards on employee spending—all of which can help you get more out of every dollar. With Capital One business cards, for example, you can redeem rewards for travel, statement credits or other purchases—making it easier to reinvest in your business as it grows.

Keeping a close eye on your spending doesn’t have to be complicated. Digital tools—like those included with many business credit cards—can help you monitor transactions in real time, categorize purchases and even sync with your accounting software. When you have clear visibility into where your money is going, it’s easier to spot trends, cut unnecessary costs and make smarter financial decisions as you grow.

As your business grows, so does the need to delegate—and that often includes spending. Giving team members access to company funds can be helpful, but it also requires clear boundaries. Business credit cards that offer employee cards with custom spending limits make it easy to stay in control while empowering your team to make purchases when they need to. This way, you can save time on approvals, reduce bottlenecks and maintain visibility over every dollar spent.

Once your business is up and running, managing day-to-day expenses is only part of the equation—planning for long-term growth means thinking ahead. Whether you’re securing the proper funding, refining your business plan or adjusting your spending strategy as things evolve, building in time to regularly review your financials and goals can help keep your business healthy and ready for what’s next.

Business credit cards can be a flexible solution to the challenges that come with early startup expenses—but they might not cover everything. As your business grows, you may need more funding to take the next step—whether that’s launching a new product, hiring staff or covering unexpected construction costs. That could mean applying for a small-business loan, looking into grants or even talking with potential investors. Whatever route you choose, having a plan in place can help you move quickly when the time is right.

A solid business plan does more than help you stay organized—it can also make it easier to secure funding, set goals and track progress over time. It should outline how your business will operate, who your customers are, what your financial needs look like and how you plan to grow. Whether you’re applying for a loan or just mapping out your next steps, having a plan on paper can help you make more confident, informed decisions.

Staying on top of your spending is key to keeping your business financially healthy. Set aside time to review where your money’s going regularly, what’s working and where you might need to adjust. It’s also smart to build and maintain cash reserves—so you’re ready for unexpected expenses or new opportunities. A flexible approach to spending helps you stay focused on your goals and better prepared for what’s next.

Starting a business is an exciting move—but it also comes with a lot to think about. One of the best ways to set yourself up for success is to get a clear handle on your startup costs. From big one-time purchases to everyday expenses, building a flexible budget can help you manage your money with more confidence and less guesswork. Don’t forget to plan for hidden costs, look for ways to save and revisit your financial strategy as your business grows.

As you take the next step, finding the right financial support can make a big difference. Compare business credit cards from Capital One to find options that help you manage spending, earn rewards and stay organized. You can even get pre-approval—with no impact to your credit score—so you can move forward with confidence.