Starting a business seems like a great idea because you get to be your own boss and make your own hours, but don’t jump in without knowing how much it’s going to cost you. Many businesses fail because they don’t take into account how much they’ll have to spend to get it started and how much the hidden operational costs will affect their bottom line. Below are some of these costs and how you can get rid of them:
Licenses and Permits
This is a forgotten cost that people often overlook when planning out their initial budget. If your industry requires certain licenses or permits to operate or sell your product, then this needs to be added as an expense. Be sure you understand how often they need to be renewed.
You can hope that you’ll never need the services of a law firm, but the costs can add up. If you need contracts written up or professional negotiation services, then you’ll need a lawyer. Add these expenses to your budget. Ask friends and associates for advice about affordable legal services.
If you are planning on hiring less than ten employees health insurance is very expensive, so be sure to do your research to find the cheapest options. Paid vacation and sick leave can also be expensive, so plan for this as well.
This is one of the most commonly overlooked expenses. Be sure to add gas, water, internet, electric, and even cleaning expenses to your monthly budgetary plans. Research shows that you can save money and boost office productivity by keeping your thermostat set to 77 degrees during the summer months.
When planning your business sit down and make a complete list of all the equipment you’re going to need to get started, including chairs, desks, printers, computers, tablets, phones, scanners, and whatever else is necessary. Don’t just go to the nearest office supplies store to buy everything. Research prices on the internet to find the best prices, even if you have to shop at various stores to get everything you need.
Repairs and Emergencies
Running a business requires a lot of technology and equipment. This means that things will malfunction and need to be repaired. Be sure to leave a chunk of money in your budget for emergencies and repairs.
Not only do you need to take into account how much you’ll spend on toner and repairs by estimating how much printing you’ll be doing, but you’ll also need to figure out how much paper you’ll be buying. Managed print services are something you should probably look into, as they can save you a ton of money if you are planning on doing a lot of printing. They can also help you figure out your budget more effectively because of the fixed cost.