How Much Does It Cost to Start a Business? (2026 Data)

Based on our analysis of 60 business types, the average minimum startup cost is $72,558 and the median is $15,000. However, costs vary dramatically, from as low as $500 for the cheapest businesses to $1,100,000 for capital-intensive operations. Your actual cost depends on the business type, location, and scale.

The five cheapest businesses to start are: Dropshipping Business (from $500), Pet Sitting Business (from $1,000), Tutoring Business (from $1,000), Cleaning Business (from $2,000), Clothing Brand (from $2,000). These are typically service-based or online businesses with minimal equipment and no physical storefront required.

Our data shows an average minimum startup cost of $72,558 across 60 business types. The SBA estimates most microbusinesses start for under $3,000, while the Kauffman Foundation puts the average closer to $30,000. The wide range reflects the diversity of business models. A freelance consulting business costs far less than a restaurant.

Online businesses like e-commerce stores, dropshipping, and app development typically cost $500–$5,000 to launch. The main expenses are website hosting, domain registration, initial marketing, and any software subscriptions. This makes them among the most accessible business types for first-time entrepreneurs.

A formal business plan is not legally required, but it is highly recommended, especially if you need financing. At minimum, you should understand your startup costs (use our calculators), project your first-year revenue, and identify your target market. Even a one-page plan forces you to think through the numbers before spending money.