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

Based on our analysis of 50 business types, the average minimum startup cost is $31,890 and the median is $15,000. However, costs vary dramatically — from as low as $500 for the cheapest businesses to $250,000 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), E-Commerce Store (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 $31,890 across 50 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.