Jun 29, 2016
If you have decided that becoming your own boss is for you then you will already understand how much a business costs. However you may be unaware of all the hidden expenses when you start a business. In the beginning when it comes to running your own business many do not realise how much time and energy it takes up. Although once your business really starts taking off that is when you can start reaping the benefits. If you plan on starting a business this year then you will need to be aware of all of the costs.
Permits & Licenses
In most places businesses have to have health inspections and authorizations. When you start a business you also need to obtain business licenses and permits which will vary from business to business. One business may require basic licenses while others may need industry-specific permits, the best thing to do is research it beforehand and then depending on your type of business you will have to register for different permits and licenses.
Although at first when starting your business you may choose to work from home, as soon as you start hiring employees and your business begins to expand this is no longer a viable option. The type of property you need will also heavily depend on your type of business. Many commercial leases particularly those involving retail premises operate on a quarterly basis rather than a monthly one. Most offices will require office space rather than retail premises then you may want to consider offices for rent, as they generally work out cheaper. If your business doesn’t have a major budget then the best idea is to probably share a rented office with another small company. Not only is it cost effective but it is perfect for businesses that are just starting out too.
Stock & Furniture
If your starting out business is a based on retail, then of course your stock will be the most important and expensive of costs. The amount of stock that you spend on your business will obviously heavily depend on the type of your business, but either way always remember to shop around for the best offers and prices. As well as stock, equipment and furniture is incredibly important especially if your business is office based. Although you can also rent equipment and furniture, you will need to work out the best offers for your business.
Although you may not be looking to hire as of yet, but you will need to begin planning to hire employees. In turn you will also need to look at wages, salaries and benefits that you will offer your potential employees. Hiring and maintaining employees is expensive as you will have to provide a variety of things from uniform to sick pay, but it is far more cost effective if your employees are happy and have high morale, as high turnovers can really effect businesses. If you are unable to provide your employees with valuable benefits then that will create low morale, mutiny and ultimately bad publicity, all of which can then lead to a failed company.