When you start a business, there are loads of costs to expect. The costs of renting or buying a workspace are obvious ones. The salaries of the employees you hire are another. The technology you need to perform certain tasks is a pretty obvious expense.
But there are going to be costs that may catch you unprepared. Starting up a business requires you to have as accurate a cost projection as possible. Otherwise, you’ll be financially unprepared – something you definitely don’t need to be in the business world!
It’s not likely to be possible for you to anticipate every cos. But you should make sure you’re as prepared as you can possible be. Here are a few of the costs you need to consider that may not have crossed your mind yet.
Recruitment
Yeah, I know that I already mentioned the salaries of employees. But employee salaries and recruitment costs are two distinct things. In fact, employee salaries are part of the recruitment costs – and there are many other expensive parts to consider there. There isn’t that much you can do to avoid such expenses – other than reduce your need to recruit in the first place. This can be done in two ways. One is by outsourcing. The other is by making sure your employees are worth the costs by ensuring their performance is always improving. This is something that you can supervise and manage with Six Disciplines.
Tax services
Many business owners will overlook this – until April, of course! Business taxes are more complex than you might think. No small business owner should try to tackle it by themselves, especially with so many other elements on their plate. But getting help is another expense, right? Still, mistakes on your taxes can be very expensive. A small business tax advisor can help you save a lot more money than you might think. Tax mistakes can either end in fines, or you paying more than you actually need to.
Security
Your business needs protection. I wish I could tell you that you’re not at risk of being the target of criminals… but you’re totally at risk of being the target of criminals. Running a business without protecting yourself from theft or other crimes if foolhardy! So what kinds of security do you feel you need for your job? You’re going to want to explore locks, ID cards, entry codes, and CCTV. And we haven’t even mentioned online security! Don’t be tempted to make the startup much more affordable but cutting corners with security. If your business is affected by crime, then the resultant costs may work out even higher.
Insurance
In case this article didn’t already make this pretty clear, you’re going to be spending a lot to set up this business. You need a way to protect such investments. Which, yes, does involve spending even more money! There’s the insurance of your office and the equipment inside it from both damage and theft. If you’re working with particularly dangerous elements, then you’ll need insurance relating directly to those elements. If you don’t’ include insurance in your cost projections, you’re making a mistake.