The Hidden Costs of Running a Small Business You Should be Aware of
Wednesday, November 8, 2017, 6:00 PM | Leave Comment
Let’s face it – almost all of us had a dream of starting our own company at one point in our lives.
The idea of running your own business and evolving it into something great is intoxicating, but it’s not a simple thing to do.
There’s a lot of research involved, and you really need to be prepared for such an adventure. And, like with almost anything else in business, the biggest problems are costs.
We’ve made this short guide to help you understand some of the hidden costs of starting a business. This guide shows just some of the things you need to take in consideration before starting your own business, but there are lots more.
Hopefully, this list will help you get started, so, let’s get straight to it.
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Office Space and the Necessary Utilities
When you think about a successful business, you usually think about a company that has its own office space with tons of employees, but is that something you really need to start a successful business? The simple answer is – no, you don’t.
Renting out space for your business and filling it with utilities and equipment might be quite costly, and if you’re just starting a company, those expenses can run you down. Instead, you may consider starting up from a home office or getting a temporary office space.
When it comes to the utilities, quite a lot of leased spaces include costs for them, but when you’re on your own, equipping the office may be quite a budget-cutter.
Look for utility providers that can help you with better energy efficiency, and look for competitive rates or negotiate your terms.
Make sure you know exactly how much you can spend, so you can make a rock-solid budget.
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Equipment Costs
It doesn’t matter what kind of business you want to run, you need a set of tools to make it work.
In order to get the equipment you need, you must first make a detailed list of all the necessary items you need.
Don’t forget the basic office equipment like copiers, scanners, chairs, desks, paper and other necessities. You don’t have to buy brand new equipment.
There are some great options on second-hand and discount websites where you can find absolutely functional equipment for a very reasonable price.
There are some pieces of equipment that need regular upgrading and changing, for example, a laptop has the life expectancy of around five years. After that they often become very slow and basically useless, so you would need to keep this in mind.
Here are also some great electronics retailers that offer extremely affordable protection plans, so this might be another thing to help you out with your future business.
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Employment
When it comes to your future workforce, you must understand that having full-time employees means a lot of costs.
You have to pay taxes, salaries, holidays, retirement funds, and more expenses required by the law. You need to think about bonuses, but also about insurance, and you have to do your research thoroughly.
One of the ways to avoid these expenses is to hire a freelancer or an outsourcing company. This way you get the professional help, and you get to pay less.
It can be a bit challenging to find the perfect outsourcers right away, but once you do, your business can flourish.
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Maintenance Costs
Another source of countless hidden costs comes from maintenance. Someone needs to keep your workspace clean and ready for work.
You will need to fix the pavement in front of your building and maintain the parking. All these services are necessary for a business to function properly. That’s why you need to find the best possible solution to these issues.
You can always try and negotiate the terms of your lease with the landlord. You can determine which expenses go under your obligation, and which will be covered by the landlord. Search for the best possible service providers and arrange a discount.
There are some cleaning solutions like Cleanworks which will provide you with a professional service, and still keep your expenses at the minimum.
Make sure you stay on top of all the services your business needs, in order to keep your budget safe.
Wrapping It Up
So, there you have it. This short list aims to help you understand how hidden costs can affect your business in quite the negative way.
Instead of dreaming about your new business, you should sit down and start planning. This way you can understand which costs and expenses may affect your budget and business in general.
Do your research, and consult a professional, whenever you get the chance, and you will be setting up your new business office in no time.
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