You know that starting a business is… well, it’s effing expensive, as we said in the episode! But did anyone mention that in college? Probably not. The good news is, you’re here now, and we’ve got some serious insights to share. With our very own Kelly Kane’s 16+ years of running an agency (she literally started her first one in 2009, during the Great Recession, with zero seed money and just a laptop!), we’ve helped countless small business owners navigate the tricky waters of startup costs. We know where your money is best spent, and where you can get scrappy and save.
The Moxie Approach: Smart Spending, Not Reckless Splurging
At Moxie Creative, we’re built on the philosophy of being genuine and practical. When clients come to us with big dreams and limited budgets, we don’t just propose everything under the sun. Instead, we put ourselves in their shoes, asking: “If this were our money, what would we do first?”
This approach often leads to phased plans. We might suggest a “phase one” with essential investments, followed by “phase two” as the business grows. Why? Because money isn’t endless, and understanding what’s most important from the get-go can save you a ton down the road. It’s all about being strategic, not just spending for the sake of it.
Kelly vividly recalls the early days of her first agency back in 2009. People were getting laid off left and right, and she and a coworker decided, almost on a whim, to jump in and start their own thing. Their initial investment? Practically nothing. “We had zero funds to start,” Kelly shared. They managed to snag an office for a mere $180 a month (split between them!) and leveraged an interest-free credit card for essential purchases like computers and office furniture. Within a year, they paid it off. Talk about scrappy! This incredible story highlights a crucial point: you don’t always need a bank loan (especially for a service business) to get going; sometimes, a bit of moxie and smart credit card use can kickstart your journey.
Back then, remote work wasn’t even a glimmer in anyone’s eye, and having a physical office was crucial for legitimacy, even if it was a tiny third-floor walk-up. Things have definitely changed since then (thank goodness for hybrid schedules, right, Isabella?). But the core challenge remains: how do you separate business spending from your personal finances when every dollar feels like it’s coming out of your own pocket?
Where to Invest: Branding, Online Presence, and Legal Essentials
When we talk about the cost of starting a business, there are a few non-negotiables that, if invested in properly upfront, can save you a headache (and a lot of cash) later.
1. Invest in Your Brand (Seriously!)
As a marketing agency, this is naturally close to our hearts, and it’s something we excel at. We always, always, always say: invest in the brand first. Why? Because research proves that skimping on your brand initially will cost you more in the long run. You’ll end up spending more to redo it, or worse, trying to recover from a shaky first impression.
A professional brand creates that crucial visual identity that resonates with your audience from day one. While Kelly’s first agency had to create their brand super fast (and even rebranded a year or two later, which is totally okay!), the key was getting something professional out there. If you’re a construction company slapping your logo on a fleet of vehicles, or a retail business with prominent signage, rebranding later can be incredibly expensive and discouraging. So, if your business relies heavily on its visual identity in physical spaces or large-scale applications, prioritizing professional branding is a no-brainer.
Now, if you’re truly just starting out with an idea and aren’t sure if it’ll fly, a DIY brand can get you started. We’ve seen clients successfully do this. But understand that there will likely come a point where you outgrow it, and you’ll need to invest in a professional overhaul. It’s a calculated risk, but always remember the potential future cost.
2. Build a Solid Online Presence (More Than Just a Website)
Next up: your online presence, with your website as the central hub. We love helping new businesses launch their online journey. It’s a different beast than working with an established site; sometimes, the website development process is the starting point for really defining their business.
While there are tons of DIY website builders out there, be aware of their limitations. Many aren’t built to scale with your growth. You’ll eventually outgrow them, and migrating to a more robust platform can be a complex and costly endeavor. We often encounter businesses who have spent time and money on a basic site, only to find they need a complete rebuild when they want to implement advanced features or improve their SEO.
Speaking of SEO, a website is just one spoke in the wheel of your online presence. New businesses often wonder why they’re not immediately showing up at the top of Google results. Well, it takes time and strategic effort! Beyond the website design, you need to consider:
- Social Media: Isabella, our social media guru, emphasizes that while platforms are free to use, effective social media isn’t just about throwing posts at the wall. Organic social media is a long game, crucial for understanding your target audience, what content resonates, and connecting with them authentically. It’s an investment of time, or if you prefer to outsource, a strategic spend.
- Email Marketing: Building an email list from day one is an organic, low-cost way to nurture leads and communicate directly with your audience.
- Networking: Meeting people in person is a fantastic organic way to build connections and spread the word.
We often work with small businesses on tight budgets to create a core strategy for their social media, providing templates and guidance so they can manage it themselves initially. This helps them learn what works before they invest in full-scale management or paid advertising. Because, as Isabella says, it’s always best to understand your audience organically before you start spending on ads. When you know what clicks, you can amplify that content effectively.
3. Lean on the Experts (Legal, Accounting, Benefits)
Kelly calls this the “should you?” test. Can you do your own accounting? Maybe. Should you? Probably not. Early on, Kelly invested in a business consultant (at $250 an hour, 16 years ago!), despite being told it was expensive. Her logic: “How can I not? I don’t know what the heck I’m doing!”
This is where you absolutely spend. Get a lawyer, an accountant, and someone to help with benefits/payroll. These experts will save you from costly mistakes, legal headaches, and tax troubles in the long run. You might not be a math whiz, and that’s okay! Your time is better spent focusing on what you’re best at – selling your project, perfecting your service, or creating your product – and letting the experts handle the rest. You need to understand the basics, but you don’t need to do it all yourself.
Where to Save & Get Scrappy: Office Space, Equipment, and Overtime
Not every investment needs to be a big one, especially when you’re just starting.
1. Office Space: Does Your Business Need It?
In 2009, a physical office was non-negotiable for perceived legitimacy. Today? It really depends on your business. If you’re a consultant, traveling to clients’ locations, or operating purely online, a fully remote setup can work beautifully.
At Moxie, we’ve always had an office, even through the pandemic when we adopted a hybrid model. While Kelly sometimes jokes about paying for an office when we’re not always there, we find immense value in being together three days a week. For us, having a physical space helps with collaboration, creativity (especially for designers like Michael who thrives on in-person connection), and client meetings. Our office is truly a marketing tool. Clients love being able to come in and talk to us face-to-face, a stark contrast to purely remote setups they might have experienced elsewhere.
If a full office isn’t feasible, consider:
- Coworking spaces: A great opportunity to have a professional address and meeting rooms without the full cost.
- Shared spaces: Partnering with a complimentary business to split rent can be a smart move.
The key is assessing whether an office adds legitimacy and functionality for your specific business model and client interactions.
2. Equipment & Tools: Prioritize Efficiency, Not Over-Purchase
For a service industry like ours, major equipment isn’t a huge line item, but computers and essential software definitely are. While it might seem expensive initially, investing in decent computers is critical for efficiency. Working on old, slow machines will inevitably hinder your progress.
Our biggest “tools” are our software subscriptions. Yes, we have a lot of them, but they make our jobs easier and more efficient. The dance is always finding that balance: spending enough to ensure productivity and quality, without going overboard on every shiny new tool. Ask yourself: will this save me time in the long run? Will it pay for itself in increased efficiency or improved output?
3. Hiring: Trust Your Gut (and Your Team’s Well-being)
Hiring is a significant investment, especially when payroll becomes your biggest budget line. For Kelly, the decision to bring on our newest Moxie, Tyler, wasn’t just about a budget spreadsheet. It was about listening to her intuition and paying attention to the team’s stress levels.
When you can’t let an employee take a well-deserved vacation without feeling completely overwhelmed, or when you see the stress showing on their faces, that’s a clear sign. Kelly’s philosophy: “I want happy clients, but I need happy employees too.” Overtime isn’t cool anymore, and stressed creatives aren’t their best. Sometimes, taking that “calculated risk” to expand your team, even if it feels like a stretch, pays off immensely in morale, capacity, and ultimately, client satisfaction.
The Biggest Takeaway: Don't Be Afraid to Ask for Help
Starting a business doesn’t mean spending recklessly. It means being strategic about your investments. The key is knowing what’s a smart expenditure now versus what can wait, and understanding where getting scrappy is beneficial.
Our biggest piece of advice from the podcast: consult the experts before you decide to do something. Many new entrepreneurs receive conflicting or incomplete advice. Don’t be afraid to ask for help! Resources like the Small Business Development Centers (SBDC) are fantastic, often free services available to guide you. Even if you come to us at Moxie Creative thinking you need a big advertising campaign, we might honestly tell you to start with something more fundamental, like joining a networking group, if that’s what’s truly best for your stage of business. We don’t want you to waste money or mortgage your house to hire us!
Your Challenge:
If you’re contemplating starting a business or are in its early stages, take a moment. Write down your goals – your six-month goals, your five-year vision, even your ten-year aspirations. Then, outline the steps needed to get there. This exercise will help you identify exactly where you need to invest right now, where future investments are necessary, and those crucial areas where you can roll up your sleeves and get a little scrappy.
Tune In and Get Inspired
Ready to take control of your startup costs and build a brand with real moxie?Listen to the full “The Cost of Starting a Business: Where to Spend and Where to Save” episode on Behind the Brand!
