How Setting Up A Business Can Cost You More Than You Think
5th October 2018
It’s unlikely that you’re going to set up a business for the fun of it (though, if you pick a business that’s right for you, it will also be fun). You’re setting up a company to make money. And given enough time, hard work, and a pinch of luck, then this is what’ll happen. However, even though you’ll be aware of the obvious costs associated with your business, there may be some expenses that you overlook. Below, we take a look at five ways a business can prove to be more expensive than originally believed.
You’ve found the perfect rental space for your business, and have signed the lease. You may have been enticed by the small rental costs, which, as a new small business, will have been important, but you forget to think about something: just how much petrol it’s going to cost you to get to and from the office. You might be able to handle a forty-five minute drive twice a day, but can your wallet? Petrol’s one of those things that creeps up on us. We don’t realise how much it costs us until we step back and take a look. Between a nice office forty-five minutes away and one in your own house, choose the one in the home until your company finances are secure.
There’s many a website that says you can run your company with nothing but a laptop, but this isn’t true. You’ll need a good laptop, for starters, one that is able to do all the varied, essential tasks you’ll need to perform as a business owner. You’ll also need a fast internet connection, and a smartphone and possibly a tablet for work purposes. This costs could stack up if you’re not keeping an eye on the budget.
High Loan Payments
Unless you’re in a blessed position, it’s highly unlikely that you’ll be funding your business yourself. You’ll need to get a loan. But it’s important to remember that not all loans are created equal. Before agreeing to finance, it’s important that you use a small business loan payment calculator. It’ll make clear to you just how much you’ll have to pay back if you take out that loan. Can you comfortably afford the payments? If not, you’ll know that it’s not the right deal for you.
Hiring and Replacing Staff
You might not need to hire an employee on day one, but it might be required soon rather than later, Many a new business owner underestimates how much work they can do themselves. The cost of hiring an employee can be expensive, however, and if they don’t work out or stay, then you’ll need to double the cost to find their replacement. Before bringing someone on board, see if there’s a way you can outsource the task to a third party company first. They’ll be able to do the job for you until you’re sure you’re in a position where you can bring someone on board full-time.
Beth is a 30-something, self-employed Mum rediscovering her connection to British History and nature. Her loves include the discovery of knowledge, walking in the woods, and writing, among others. Beth is a Virtual Assistant at The Happy VA.