Starting a business is an exciting endeavor, but it can also be a bit overwhelming. There are so many things to consider, from the big-picture goals to the nitty-gritty details of daily operations. One of the most important steps in launching your own company is making sure you have enough money saved up to cover all of your expenses. Unfortunately, there are some costs that entrepreneurs often overlook when starting out. Let’s take a look at five commonly forgotten business expenses that you should plan for.
It may be tempting to try and save money by doing everything yourself, but hiring professionals can actually save you time and money in the long run. You’ll need to enlist experts for tasks like accounting, legal advice, website design, marketing, and more. Make sure to factor in these costs when budgeting for your business startup.
Depending on your industry, you may need to acquire specific licenses or permits before starting your business. Do some research ahead of time so you know exactly what licenses you need and how much they cost – then make sure they are part of your budget.
Technology plays an integral role in any modern business, but unfortunately, it comes with a hefty price tag. Setting up computers, printers, software subscriptions, and other tech will require an investment upfront (and ongoing maintenance costs). Make sure that you set aside sufficient funds for these essential items before launching your venture.
The more people know about your business, the more successful it will be – so don’t skimp on promotion. Investing in advertising materials such as signs or flyers will help get the word out about what you do. Plus, creating social media accounts and buying digital advertising space can help spread awareness even further – just make sure these expenses are accounted for in advance.
Last but certainly not least is insurance coverage – something that many entrepreneurs forget about until it’s too late. Depending on where you live and what type of business you operate, specific types of insurance might be required by law, but even if it’s not mandatory where you live, having adequate coverage is still a good idea for peace of mind (not to mention potential savings down the line!). There are specific types of insurance, like trucking insurance, you will need to account for in your budget as well.
As an entrepreneur or small business owner looking to start or expand their venture, it’s important to consider all financial aspects upfront, including those that may be overlooked initially. The five expenses mentioned above are all worth considering when mapping out budgets and cash flow projections before launch day arrives. This way there won’t be any unwelcome surprises along the way. With the right planning ahead of time, entrepreneurs can ensure they have enough funding available when unexpected costs arise, allowing them to focus on running their businesses with confidence.
Emma is a freelance writer based out of Boston, MA. She writes most often on health and education. When not writing, she enjoys reading and watching film noir. Say hi on Twitter @EmmaSturgis2