4 Business Expenses to Take Care of Before Opening Day
Wednesday, March 20, 2019, 6:00 PM | Leave Comment
Opening your business is exciting. The day you open is the day that your dream becomes a reality.
Before you start your business, however, there are some expenses that you’ll want to have taken care of. This might mean investing some of your own money upfront.
But, don’t worry, you’ll be able to earn your investment back and then some thanks to the money you’ll make from your business.
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Necessary Equipment
Depending on the size of your business and its specific needs, you should prepare to invest some money ahead of time in equipment. The lowest amount new businesses tend to spend on equipment is around $10,000, though it can be much more depending on the type of equipment needed.
The best thing to do is to sit down and make a list of the things you absolutely have to have in order to run your business. Whether it’s as simple as products for sale and a cash register or as complex as several vehicles and other pieces of heavy machinery, make sure you have what you need. Otherwise, you won’t be able to run your business properly or to start making a profit right away. Don’t start something prematurely.
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Business Insurance
Another thing to take care of before you “cut the ribbon” on your business is business insurance. In fact, depending on where you live and the nature of your business, you may not even be able to legally open without a policy in place. While no one likes paying for insurance, you’ll appreciate it when something going wrong.
You need to be protected in the event that someone slips and falls on your property, as do your customers. You also need to have a safety net to fall back on if you run into any snags or problems along the way. Fortunately, there are all kinds of policies and coverage options, making it easy to find the coverage that’s just right for you and your business. For example, if you run a retail business in California, contacting a business insurance broker in CA should be on your to-do list.
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Permits and Licenses
Every state will have laws in place about what permits, licenses, and other official permissions are necessary to legally operate a business. The type of business you own and the services it provides will usually determine the type of legal permissions you need. Typically, there are some small costs involved with any type of license, and these costs need to be paid upfront. Thus, find out what is required of you in your area and its cost and then budget for these expenses accordingly.
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Marketing Costs
The best way to have a successful business opening is to make sure plenty of people know about your business. You want people lined up outside the door on opening day. To make that happen, you’ll need to invest some time and money in marketing. Whether you want to pay someone to pass out fliers, launch a massive social media campaign, or even spring for a television commercial, some money will need to be put in to letting people know your business is taking up residence.
As you can see, there are some expenses that will need to be taken care of upfront, before you even open. If you can plan for these expenses carefully, however, there won’t be any ugly surprises. Instead, your business will be set up for success from the start, and that’s exactly what you want.
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