2026 will be a year of economic uncertainty and volatility, so running a small business will, as ever, be a challenge. Don’t get me wrong, there will always be aspects of operating a business that are exciting and deliver on the age-old promise of independence, autonomy, and creativity. But, fair warning: this article will not stray away from some of the sober truths that accompany running a business in the modern day.
Set Up Costs
If you’re starting a new business from scratch, eager to go and make your first sales, this probably won’t come as music to your ears, but it’s critical to understand. In 2026, lots of small businesses face the same starting checklist of costs.
You must consider:
- Business registration and legal fees.
- Accounting setup and software
- Web design and server cost
- Marketing
- Machinery, equipment, and tools for operations
Your mileage may vary, depending on your industry. For instance, if you own a construction company, you might assume that the highest financial burden early on would be machinery and other equipment. Butthis isn’t the case, as you can use a plant hire supplier to hire the equipment instead of buying it outright. Your main expense early on would likely be property-related, like the rent you pay for an office or warehouse. A different business in a different industry, like an e-commerce startup, would be more reliant on web design and servers, so they would likely need to invest more in those areas.
Now, I appreciate that some of you might read this list with a more sceptical eye. After all, if you’re in business, you’ll look to cut costs where you can; it’s only natural.
Unfortunately, you’ll have a tough time justifying cutting your marketing budget or going without robust accounting systems, let alone a website, which is essential in today’s digital world.
Technology
For many small businesses, tech is a significant core operating cost as they depend on industry-specific software, like CRM’s, project management programs, or expensive creative tools, like the Adobe Creative Cloud, to operate normally.
They are typically paid for on a subscription basis, and each might seem small on its own, but together, they can quickly pile up to form a gargantuan monthly bill. As for the total cost, your mileage will vary depending on the industry you work in, but the key to avoiding ridiculous monthly payments is to be selective.
Only pay for systems which are absolutely essential; anything else must go. Make sure you aren’t still paying for something that you’ve already forgotten about six months down the line.
Marketing
Anyone who wants to start off their business on the right foot knows that marketing is an essential part of getting it off the ground and growing an audience. Unfortunately, marketing in 2026 isn’t cheap. In fact, it’s only getting more expensive.
Here are some common marketing costs that you might encounter early on:
- Paid adverts on Google and social media
- Content creation, including photography and video
- SEO tools
- Email campaign software
Now, much of this is very much dependent on the scale and ambition of your operation. If you’re a local mechanic, and you’re perfectly happy growing organically based on good word of mouth and organic social, that’s perfectly ok. In that case, the main cost is the time that you commit to operating the social media account, and the opportunity cost of having either yourself or a member of staff on a smartphone instead of supporting customers.
If you have your sights set on growth, then you might need to spend more on ads, and much, much more time managing in marketing mode. This is especially true if you’re posting consistently, filming videos, responding to messages, dipping your toes into SEO, and looking at analytics. Your valuable time here is the true cost. If you’re low on time, then there’s an obvious, albeit expensive, solution.
Labour and Outsourcing
As a founder, you only have so many hours in the day. It’s likely that, eventually, you’ll reach a point where trying to do everything yourself is no longer sustainable. In 2026, outsourcing is common and, oftentimes, essential. When it comes to essential business functions like accounting or marketing, outsourcing is only becoming more and more common; in recent years, 65% of small businesses have outsourced their work to third parties.
If you’re struggling operationally to keep up with demand, then bringing on more staff is inevitable. Depending on what’s best for the business, you can choose between permanent or contract employees, who work either part-time or full-time, but with recent increases to employers’ national insurance costs, you’ll be forced to take each hire more seriously.
Closing Thoughts
When you understand these costs and can keep them under control, you’ll be free to find the flow of your business, with the occasional tweak here and there. Although the paths to success are narrower nowadays, with high inflation and changes to the government’s economic policies, there are still paths to follow and forge. All you need to do is find yours.
