• There are many different home businesses that you can start, from mail-order to child care provider. The type of startup costs you'll encounter in your home business depends on the type of business you're operating. Minimizing startup costs to the bare essentials may accelerate your ability to turn a profit in your home business.
  
  

Supplies & Equipment

• If you're selling products as you would in a home mail-order business, you'll need to factor in the cost of inventory. You'll need to do this whether you're using a drop shipper or if you're physically keeping your inventory in your basement or garage. Additionally, you'll need to consider the cost of shipping and shipping insurance when calculating your inventory costs.
  
  Most home businesses require office supplies or equipment. Stores such as Staples and Office Depot may offer discounts on shipping if your purchase is more than a certain amount. Shop around to find the best prices on items such as reams of paper or fax machines. To minimize your costs, buy office supplies in bulk whenever possible from stores such as Sam's Club or Costco.
  
  Furthermore, you may need office furniture to make your home business more conducive for working. Purchase desks and chairs at garage sales and thrift shops such as the Salvation Army before spending hundreds of dollars on expensive office furniture. Be sure to purchase a file cabinet and folders where you can store important business documents.
  
  

Advertising

• Advertising costs are one of the most vital concerns in your home business. If you fail to advertise, no one will know your home business exists. You may choose to advertise your home business with the help of the Internet or print media. Chances are, TV advertising is way too expensive for most startup home businesses. Consider the costs of creating brochures, business cards, websites and company stationery.
  
  These costs are necessary to give your home business a more professional appearance. Furthermore, advertising your business in trade publications may be an advertising cost that helps increase sales. Include the costs of travel to and from trade shows as a part of your advertising budget.
  
  

Utilities

• Another major cost incurred by all home businesses is the cost of utilities. Since you're working from home, your electric and phone bill will probably increase due to your reliance on computers and phones to run your home business. Shop various providers for phone and Internet services. You may want to consider using Skype or Vonage to conduct your business phone calls. The service may not be as good as your land line phone service provider, but you'll probably save a great deal of money over time.
  
  Change Internet providers or consider bundling your services together to get better pricing for your home business use. Internet and phone providers such as Comcast and AT&T are in constant competition in pricing, so it shouldn't be hard to negotiate a good package deal.