Thinking of starting your own business? When budgeting startup costs don’t forget these often-overlooked expenses.
Licensing rules vary around the world. In the US, you’re often required to apply for a business license before trading. You may also have to look into other licenses such as food licensing, alcohol licenses and music licenses in certain cases. Sites such as https://www.entrepreneur.com/article/38882 can help you to determine which licenses you need. Licenses generally aren’t huge costs but they’re still worth including in your budget.
Certain types of business insurance may be compulsory. For example, if you’re hiring employees, you’ll need to take out employer’s liability cover by law. Insurance can be a big expense for businesses that is often overlooked. Fortunately, there are various ways of bringing down costs such as paying annually, opting for packages and upping your deductible. You should consider using comparison sites such as https://www.simplybusiness.co.uk/insurance-trade-selector/ to find the best insurance deals.
Having certain security in place may also be a legal requirement. Sites such as https://jumio.com/about/compliance-regulations detail these regulations and what you can do to follow them. Make sure you’ve budgeted in the cost of security features such as security software and burglar alarms. You may even want to hire a security adviser who can recommend the best ways of securing your business.
Few business owners have all the knowledge required to run a successful business by themselves – relying on outside support is often necessary. This could include hiring an accountant to help file taxes or hiring a legal advisor to ensure certain legal requirements are met or perhaps even outsourcing a marketing company to help promote your brand. These are costs that many new business owners don’t think about. When shopping around for professional to outsource, consider their reputation so that you’re not skimping on poor quality service. When hiring advisers, look for those that charge on an hourly need-to-know basis rather than getting tied into contracts. There may even be some free sources of advice out there worth looking into.
Choosing to hire employees could result in all kinds of hidden costs. Your employees’ wages aren’t the only things you’ll need to budget for – you’ll also need to consider holiday pay, sick pay, their pension and any bonuses you may want to offer. The hiring process can also be expensive as you’ll need to pay for job ads and possibly even consider hiring a recruitment agency. On top of this, new employees need to be trained up, which could result in additional costs. Many companies can put themselves in debt by underestimating the cost of hiring employees – make sure that when hiring staff you have enough money set aside to fund this aspect of your business.