5 Overlooked Startup Costs To Budget For
There’s a lot to budget for when starting a business. Some of the costs are obvious such as gym equipment if you’re starting a gym or plumbing tools if you’re launching your own plumbing service. However, many costs are less obvious and can often get forgotten about. Below are just some of the commonly overlooked costs of starting a business.
There are many types of software out there that could be useful when it comes to automating and organizing your admin. It’s recommended that all businesses use some form of accounting software – especially if you’re hiring employees and need to manage their payroll. Software may also come in use for tasks like keeping track of clients (CRM software) or ordering/tracking stock (inventory management software). Such software is likely to come with fees, although upfront costs are likely to not be too much as many are paid as a monthly/annual subscription.
There could be various types of security technology that your startup can benefit from. Burglar alarms and security cameras could be worth looking into if you’re working from a premises that needs to be kept secure. Costs could vary for this technology depending on the type of alarms and cameras you need. There are then all the cyber essentials to consider such as security software and IT support. These will typically come with ongoing fees that need to be budgeted for.
Permits and licenses
Many businesses cannot be launched without first applying for certain permits and licenses. For example, if you’re opening a restaurant, you may need a food handling permit and liquor license. Operating without the appropriate permits and licenses could put you at risk of being fined or even having your business shut down. A legal advisor can help you to apply for the necessary permits and licenses – most of which have one-off or ongoing fees.
Some types of commercial insurance may be mandatory when starting certain types of business. For example, if you’re hiring employees, you must take out worker’s compensation insurance – which covers your employees if they are injured or made sick through your work. Other types of insurance may be recommended, such as public liability insurance when starting a landscaping company to provide compensation if you accidentally injure or damage the property of a customer/member of the public. Make sure to look into the costs of these insurance schemes.
Every modern business needs a website in order to look legitimate. Websites can also help you to attract business via search engines. Hiring a website developer to build you a website is something you need to budget for when starting a business. It is possible to build your own website and save a lot of money – but you’ll still need to consider costs such as website hosting and an SSL certificate, as well as any professional photos you want to display on your site. This post delves more into the benefits of bespoke website design.
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