Saturday, December 3, 2016
5 Hidden Costs of Running A Business
You may think you have it all covered. You’ve accounted for the rent, for the cost of utilities and the staff you’ll need. But what other hidden snags should you be aware of. If you’re just venturing into business for the first time, here are 5 hidden costs that you may have overlooked when budgeting
Running a business can come with multiple insurance payments, some of which are compulsory, others of which aren’t but are generally recommended. Employer’s Liability Insurance is the main compulsory one (although if you don’t have staff and you’re solely running the business you don’t need it) protecting you against staff who are ill or injured and staff that make claims against you.
Other insurance types can protect you against property damage, public claims, professional indemnity and faulty products given to you by the manufacturer. In some businesses, certain insurance types may be less suited than others. Researching all these can get you the best deal.
For those setting up a business in retail, a till and card reader can be a last minute purchase. Shop around to get the best deal on these items. If your business is likely to dealing with credit cards, you may need a credit card terminal too.
For businesses that deal with transactions online, make sure you have a secure payment method set up. This could mean investing in good digital security to make sure the account details of yourself and your clients are safe.
Some people only start looking into marketing once they’ve got their business working, then realising they don’t have the adequate amount of money for it. A large chunk of your budget should go into marketing and you should start doing it before setting up your business, telling people when your business opens and building up hype. Marketing should not be seen as a one-off expense at the beginning, but a regular payment to keep your business constantly expanding.
Unless you’re already a dab hand with figures, you should probably think about hiring an accountant to handle your taxes and expenses. This will free up the time slaving over spreadsheets, allowing you to focus on other business aspects. Shop around for accountants that best suit your area of expertise. Most small businesses shouldn’t need an expensive accountant, unless the nature of your business is complex monetary issues.
Utensils & equipment
There is some equipment such as computers and desks for an office and table and chairs for a restaurant that you’ll have already budgeted for. But other small items such as printer ink and receipt paper may well slip your mind and only become clear days before opening business (or even once you’ve started business). Budget beforehand for all the items that you can think of and then leave some extra money aside for last-minute equipment purchases that you’re likely to have forgotten. Having a grand spare to dip into can act as a nice safety net, especially when starting a business.