How Much Money Do I Need to Start a Small Business?

Q: How much money do I need to start a small business?

There is no single number. Add up your once-off start-up costs and your running costs for the first few months, then add a buffer. Many small businesses start with less by testing the idea first and buying only what the first customers need.

1. List your once-off costs

Registration: a company costs R125 on BizPortal, or R175 with a name reservation.
Equipment and tools.
Your first stock or materials.
Branding and signage.
Getting online: a .co.za domain is usually about R80 to R130 a year, and many online tools are free.
Deposits, and any licences or certificates your trade needs. Food businesses, for example, need a Certificate of Acceptability. See the compliance checklist.

2. List your monthly running costs

Rent, transport, data and airtime, stock, wages, bank fees, marketing and your own pay. Multiply by the months it may take before sales cover these costs.

3. Add a buffer

Sales almost always take longer than planned. Many advisers suggest keeping enough to cover three to six months of running costs.

Ways to start with less

Start from home or part-time while you test the idea.
Take deposits or pre-orders before you buy stock.
Buy good second-hand equipment.
Sell a service first, then add products.

Use the free start-up costs calculator to add it all up, and read our guide to getting funding before you borrow to fill the gap.

Do it today

List every once-off cost, even small ones.
Work out one month of running costs.
Add them up in the start-up costs calculator.
Find one way to start smaller.

Want help with your numbers? J29 mentors business owners through costing, pricing and getting funding-ready.

Ask J29 a follow-up Get a quote from J29

This answer is general information, written by J29 from the questions business owners ask Ask J29 and checked in October 2026. Fees and rules change, so confirm on the official site before you pay anything.