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If you’ve started a business or thought about becoming your own boss, it can be rewarding once the business is up and running—just remember to look out for hidden expenses. It’s always important to understand how much it’s going to cost because underestimating expenses could lead to a failed business and leave you with lots of debt.
Before you start to run and maintain a business, you’ll need to find out what license your business needs. License fees and permits can depend on whether you stay local, branch out internationally, or have an online market. Once you know which licenses you need, you can find out how much they will cost and how often they will be renewed.
All businesses are taxed as well. The amount of tax you pay will depend on your business structure—if you’re a sole proprietor, partnership, LLC, or corporation.
Office spaces can be quite costly and will in most cases eat up a lot of your business’ monthly budget. If your business is still relatively small, renting an office space with another company can cut costs. Another option if your business is just starting out and there are only a few employees is to make the most of technology and have a virtual team with no physical office space.
You will need to fill your office space with equipment and technology for you and your employees to run your company. The type of office equipment you need will vary from business to business but the basics will include computers, printers, photocopiers, desks, chairs, and anything else your particular business will require. Once you determine the needs of your business, you can hunt around for the cheapest options and compare photocopiers as well as other items.
Employees are there to help with the work load and get their jobs done efficiently. Employees make up a large part of your business’ success but they are also a large part of where hidden expenses are spent. When it comes to all of your employees, you have to take salaries, sick leave, and vacation time into consideration. There isn’t much you can do to combat this, but providing your employees with a decent living wage, clean environment, and office perks will mean they are less likely to leave. That’s important because replacing an employee and having a high employee turnover will end up costing your business a a lot more financially.
If you’re renting office space for your business, you need to have a monthly budget for all utility bills, which include electric, gas, water, internet, and phones. To keep costs down, get your employees in the routine of turning off all machines when they’re not in use, recycling as many materials as possible, investing in energy saving lightbulbs, and more. You’ll reduce your business’ carbon footprint as well as cut costs.