The pinned post about starting your firm seems to overlook some important financial details. We discussed this last year, and I believe it would be helpful to revisit the topic. Here’s my breakdown of various budgets for establishing your business, categorized into three tiers:

  1. Shoestring Budget: Around $250 per month without an office.

  2. Solid Setup: Approximately $800 per month for a comprehensive suite of tools, plus $500-900 for office space.

  3. Premium Setup: A budget of $2,000-$4,000+ per month for a top-tier setup, plus $900-1400+ for an office and the possibility of hiring an assistant (virtual or part-time).

Breakdown of Costs

$250 +/- Setup (Assumes you already have a laptop/computer; if not, factor in an additional $500-800):

  • $79 for Sales Navigator (includes 100 InMail messages)
  • Free or $20 for Loxo or Manatal ATS/CRM
  • $50 for cell phone service
  • $50 for internet
  • $39 for SalesQL (email and phone lookup)
  • $20 per year for a GoDaddy domain/personal email
  • $50+ for cloud storage and miscellaneous expenses

$800 Setup:

  • $79 for Sales Navigator
  • $200 for a full premium Loxo subscription with all features
  • $29 for a phone service like Grasshopper
  • $100 for combined internet and cell phone
  • $200-$400 for higher-quality sourcing tools like Hirez, Seekout, or Chatterworks
  • $50-$100 for cloud storage and miscellaneous expenses
  • $20 for a simple website or Outlook 365 suite

$2,000-$4,000+ Setup:

  • $79-$140 for an enhanced Sales Navigator or $200-1,000 for Recruiter/Recruiter Lite
  • $200 for Loxo
  • $200 for a fully integrated office phone system
  • $800-$1,000 for ZoomInfo Premium
  • $100-$300 for cloud storage
  • $200 for training programs such as Next Level Exchange, Morgan Consulting, or similar
  • $20-$100+ for a website with job board integration
  • $200 for access to platforms like Monster, CareerBuilder, or Indeed

One-Time Costs (Depending on Your Budget):

  • New computer: $500-$2,000
  • 2-3 monitors: $300-$2,500
  • Keyboard and mouse: $100
  • Headset: $50-$500
  • Desk or stand-up desk: $100-$1,000+
  • Office chair: $50-$500
  • Miscellaneous office supplies: $100-$300

These estimates are based on 25 years of experience. When I launched my own firm in 2011, my total monthly expenses, including an office, came to about $600 (which included a cell phone, GoDaddy URL for email, Google Voice, Google Suite for cloud storage, and LinkedIn—back then, it was much easier to search). Nowadays, the costs typically range from $1,300 to $1,600 for the same setup, assuming an office lease at around $800, plus additional costs if I bring on a commission-based sourcer.

Updates to Consider (Since this information is a year old):

I would also recommend budgeting an additional $50-100 a month for note transcription services (like Metaview or Otter, which range from $20-$40) and for ChatGPT Pro ($20), supplemented by a virtual assistant like Merlin or MaxAI ($10-$30).