5 Business Expenses You Shouldn’t Overlook
When setting up a new business, the expenses and things you need to buy and budget for can seem never-ending. Of course, this will be different from business to business; however, knowing what you will and won’t need before setting up can help you to budget better and remove any surprising expenses you totally forgot you needed.
If you are opening a store, an office with multiple employees, holding client conferences, etc., you need to meet your cleaning requirements. For some, this can be as simple as running around with a vacuum at the end of the day or sweeping up rubbish and dirt from the floor. But make sure you assess your needs and buy the appropriate cleaning equipment. Consider if you need to hire a cleaner internally or via a third party. If you take on janitor duties in-house, make sure you have plentiful janitor supplies to ensure your new premises meet health standards for cleanliness and safety.
Various insurance policies, such as health insurance or life insurance policies for employees, may be considered to cover various aspects of your business. Aside from that, your company’s building will need to be insured, though this cost may be included in a flat rental or leasing fee.
It is critical to have insurance to cover damage to or lose its equipment, furnishings, and files. Liability insurance should also be considered if an employee is injured on company property due to negligence. In addition, identity theft and cyber hacks of sensitive documents are becoming more common. Some businesses will also purchase an umbrella policy to cover any policy gaps.
Permits and Licenses
Permits and licenses required to conduct business in your community are not one-time expenses. They frequently need to be renewed, so make sure to account for those ongoing costs and set money aside for them. You should also budget for membership dues to networking organizations such as your local commerce or industry/professional groups.
If you want to cut these costs, be picky about which organizations you join, as annual memberships can cost hundreds of dollars. In addition, look for memberships that offer business-related discounts on items such as insurance, loans, credit card fees, supplies, and training.
Costs many people overlook include things like buying a domain name, website hosting, setting and running social media accounts, outsourcing tasks, building a website, branding, digital marketing, and software you use. Much of this you can do yourself if you’re skilled in these areas, but it is an extra cost it is worth thinking about when budgeting for business expenses.
You cannot expect everything to run all the time without hiccups. Having a timeline in mind for getting up and running is great. However, try not to leave things too late to get started. Chances are, the more in a rush you are, the more things will go wrong—plan for different variables and delays in setting up your business. Be aware of what could go wrong to avoid disappointment if it does. Lost time is lost money and higher costs, and failing to take this into account could be a huge expense you didn’t account for.
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