Opening a new office comes with a long list of expenses. IT is usually one of the most underestimated. Most business owners budget for desks, internet, and a few laptops but forget about the networking, security, cabling, and ongoing support that all need to be in place before the team shows up on day one.
What Drives the Cost of an Office IT Setup
The total depends on your team size, the type of work you do, and how much the space already has in place. A 5-person team moving into a wired office is a very different project than a 25-person team building out a raw suite from scratch.
At Network Tactics, we have set up both ends of that spectrum across Greater New Orleans and the final number always comes down to these categories.
Most small offices with 10 employees spend somewhere between $20,000 and $50,000 on their full IT setup. That includes hardware, networking, cabling, security, software, and labor. Larger or more complex setups can run higher.
Disclaimer:
The costs listed in this article are estimates based on typical small business setups. Actual pricing varies by vendor, location, and specific requirements. Consult your IT provider and accountant before making purchasing decisions.
Hardware: Workstations, Servers, and Devices
This is usually the largest single line item. Every employee needs a machine and your office may need a server depending on what software you run.
Workstations and Laptops
A business-grade desktop costs between $800 and $1,500. Laptops fall in a similar range depending on specs. For a 10-person office, expect $8,000 to $15,000 on machines alone.
If your team runs demanding software like AutoCAD, Sage, or design tools, those workstations need more power and memory. Buying refurbished vs. new is one way to manage this cost.
Server or Cloud Infrastructure
A physical server costs between $3,000 and $10,000 depending on specs. Cloud infrastructure through Microsoft Azure or a similar provider starts around $100 to $500 per month.
Many offices we set up end up with a hybrid approach where some things stay local and others move to the cloud. The choice depends on your software, your workflow, and your budget for upfront vs. monthly costs.
Networking: Cabling, Equipment, and WiFi
Your network is the foundation everything else runs on. Cutting corners here creates problems that show up every single day.
Structured CAT6 Cabling
If the space does not have ethernet runs, CAT6 installation typically costs $150 to $300 per drop including cable, termination, and testing. A 10-person office needing 20 to 30 drops lands between $3,000 and $9,000.
Cabling surprises people but it is a one-time investment that lasts 15 to 20 years. Network Tactics has cabled offices where the upfront cost paid for itself in reduced downtime within the first year.
Networking Equipment
A business-grade firewall router runs $300 to $1,500. A managed switch costs $200 to $800. Each wireless access point is $150 to $400. Total networking hardware for a typical small office runs $1,000 to $4,000.
Our team has replaced consumer-grade setups in offices less than a year old because they could not handle the device count and traffic. Business-grade equipment costs more upfront but it performs reliably from day one.
Phone System
A cloud-based VoIP system costs $15 to $35 per user per month. Hardware handsets run $80 to $250 each. For a 10-person office, expect $800 to $2,500 on handsets plus the monthly service.
VoIP runs over your network so it needs to be set up after your cabling and equipment are in place. In our experience, offices that skip proper network setup before installing VoIP regret it quickly.
Software and Licensing
Every employee needs software to do their job. These costs are mostly monthly and add up over time.
Business Email and Productivity
Microsoft 365 Business runs $12 to $22 per user per month. This covers email, OneDrive, SharePoint, Teams, and the full Office suite. For 10 users, that is $120 to $220 per month.
If your business uses Microsoft 365, make sure you also budget for a dedicated backup solution. Microsoft does not back up your data the way most businesses expect.
Line-of-Business Applications
Whatever software your industry depends on, whether it is QuickBooks, Sage, a CRM, or a project management tool, it needs to be properly licensed, installed, and configured. Costs vary widely but poorly managed business software leads to crashes, data loss, and compliance issues that are entirely preventable.
Cybersecurity: Protection From Day One
Security is not something you add later. It needs to be part of the setup. The U.S. Small Business Administration recommends that every small business treat cybersecurity as a core part of their technology infrastructure from the start.
Security Setup and Tools
Firewall configuration, endpoint protection deployment, email security, and multi-factor authentication setup typically costs $500 to $2,000 as a one-time project. Ongoing monitoring and management runs $5 to $15 per device per month.
Skipping security at setup is the most expensive shortcut a new office can take. One ransomware incident in the first six months costs more than every security tool you could have installed. Roddy and the Network Tactics team configure security into every new office build because retrofitting it later always costs more.
IT Setup Labor
Someone has to install, configure, and test everything. This is not a place to cut corners.
Professional Installation and Configuration
IT setup labor for a small office typically runs $1,000 to $5,000 depending on scope. This covers rack mounting, equipment configuration, software installation, user account creation, and testing.
The Network Tactics team configures every device, tests every connection, and documents the entire network before handing it over. A properly configured office on day one means fewer emergency calls in month one.
Total Cost Estimates by Office Size
| Office Size | Hardware | Cabling | Networking | Software (Year 1) | Security | Labor | Total Estimate |
| 5 employees | $4K – $7.5K | $1.5K – $4.5K | $800 – $2K | $1.2K – $3K | $500 – $1K | $1K – $2.5K | $9K – $20.5K |
| 10 employees | $8K – $15K | $3K – $9K | $1K – $4K | $2.4K – $6K | $1K – $2K | $2K – $4K | $17.4K – $40K |
| 25 employees | $20K – $37.5K | $7.5K – $22.5K | $2.5K – $8K | $6K – $15K | $2K – $4K | $3K – $5K | $41K – $92K |
Costs That Catch New Offices Off Guard
The line items above cover the obvious expenses. These are the recurring and hidden costs that businesses miss if they do not plan for them.
Ongoing IT Support
Your systems need monitoring, patching, and support after setup is done. Managed IT services typically run between $100 and $250 per user per month. This should be in your monthly budget from day one.
Internet Service
Business internet costs $100 to $500 per month depending on speed and provider. Get quotes from multiple ISPs before signing a lease. Some locations in Greater New Orleans have limited provider options that affect both speed and price.
UPS and Surge Protection
Battery backups and surge protectors for critical equipment add $500 to $2,000 to the setup. In Louisiana where storm-related power issues can destroy unprotected hardware, this is not optional.
Cyber Insurance
Cyber liability insurance premiums range from $500 to $5,000 per year depending on your industry and security posture. Some insurers now require specific security measures before issuing a policy.
How to Keep Setup Costs Under Control
You do not have to buy everything at once. The IRS Section 179 deduction lets you write off the full purchase price of qualifying equipment in the year you buy it. Computers, servers, networking gear, and off-the-shelf software all qualify.
Beyond tax deductions, there are practical ways to manage the spend.
- Phase your purchases. Buy essentials first and add upgrades over the next 6 to 12 months.
- Check if your business qualifies for any Louisiana IT grants or incentives that offset equipment costs.
- Consider cloud-first for email and file sharing to avoid server costs upfront.
- Do not overbuy. A 10-person office does not need hardware built for 100 users.
- Get a complete quote from your IT provider before you start so there are no surprises.
Conclusion
Setting up IT for a new office is a real investment but knowing what to expect upfront saves you from scrambling after move-in day. Every dollar you plan for is a dollar you do not spend on emergency fixes later. Talk to the Network Tactics team about scoping your new office setup so you know the full cost before you sign the lease.