Uncovering the Hidden Costs of Starting a Pickleball ECommerce Business
Business Insider3 weeks ago
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Uncovering the Hidden Costs of Starting a Pickleball ECommerce Business

Entrepreneurship
pickleball
ecommerce
startup
entrepreneurship
business
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Summary:

  • $10,000 budget set for launching a pickleball paddle company.

  • 60% of budget spent before placing a large inventory order.

  • Expenses include USAP fees, prototyping, packaging, and graphic design.

  • Initial costs were higher due to necessary certifications and design work.

  • Checking account balance dropped to under $4,000 after several months.

Understanding Startup Costs

My business partner and I budgeted $10,000 to launch a pickleball paddle company. However, our startup costs have exceeded expectations, and we have already spent 60% of our budget without placing our first significant inventory order yet.

Budget Breakdown

Our expenses have included:

  • USAP fees: We paid $495 to create a manufacturer account with USA Pickleball, allowing us to submit our paddles for testing and certification. This was essential for legitimizing our brand and ensuring our paddles could be used in USAP-sanctioned tournaments.
  • Prototyping: Collaborating with 330 Trading, we spent around $1,475 for prototypes and the initial shipment of paddles.
  • Packaging: We invested $1,240 on 500 custom bubble mailers from Sticker Mule.
  • Graphic Design: Hiring a graphic designer cost us $250, and we also pay $15 monthly for Canva Pro to assist with our design needs.
  • Fiverr Services: We utilized Fiverr to hire freelancers for packaging design ($64) and website development ($158).
  • Legal Fees: We spent $250 on trademarking and $75 for LLC registration, alongside $39 monthly for a Shopify Basic account.

Where Our Money Went

As of early November 2024, our checking account has dwindled from $10,000 to just under $4,000. Here’s a detailed look at where our first $6,000 was allocated:

  1. USA Pickleball Fees: $495 for the manufacturer account, $2,095 for paddle testing, plus $49 for shipping.
  2. Prototyping Costs: Approximately $1,475 for prototypes and initial production.
  3. Packaging Investment: $1,240 on custom mailers.
  4. Graphic Design: $250 for logo creation and additional monthly costs for design tools.
  5. Freelance Services: Totaling $222 for packaging and website design.
  6. Legal Fees: $250 for trademark and $75 for LLC registration.
  7. Monthly Operational Costs: $39 for our Shopify account.

We have learned that starting a business often requires more resources than initially anticipated, and our journey is just beginning as we strive to recoup our investments.

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