Are you thinking about starting a small business but want to be sure that you’re fully prepared for what lies ahead? Coming up with an in-depth business plan should always be the first step you take since it acts like a blueprint as you move forward. But next to the business plan, likely the most pressing issue on your plate will be the finances.
You want to be sure that you’ve accounted for all the expenses your small business will incur so that you can plan accordingly, thereby increasing your odds of success.
Let’s take a look at five business expenses you’ll need to account for as you open your small business. Some may already be on your radar, whereas others may come as a bit of a surprise.
You May Require Licenses and Permits
Before you can open your small business, it may be necessary to obtain specific licenses or permits. These aren’t always one-time expenses either, so you need to factor that into the start-up budget as well as a regular expense (whenever it comes due).
Business Insurance for Small Business
Here’s another significant expense that you’ll need to factor in. Obtaining business insurance for small business means you eliminate much of the financial risk in various situations.
For example, business insurance can protect you in the case of an accident, a workers’ compensation claim, natural disasters, lawsuits, and more. There are a few different types of small business insurance, allowing you to pick one that is ideal for the company’s needs.
Advertising and Marketing Costs
Of course, you need to let people know about your new business, which means advertising and marketing. These can eat away at your budget if you’re not careful so you want to be sure you choose techniques and practices that give you the most bang for your buck. Nowadays, that tends to be digital marketing.
You can create a business account on all the top social networks – Facebook, Instagram and Twitter – and start advertising and building a following for free. Just be sure to link back to your company’s website.
Business-Related Equipment and Furniture
How will you be setting up your office space? Maybe it’s not an office but a storefront or factory. Next, you’ll need to think about all the necessary equipment and furniture. It makes more sense to look into rental or lease agreements in most cases rather than purchasing the big-ticket items upfront.
Rent and Utilities
Then there is the rent and utilities that you’ll need to cover. Keep in mind that there are usually more cost-effective areas to set up shop, so you may want to look into them.
You also have to ensure that there aren’t any zoning issues that would prevent you from opening your business in that location. There’s nothing wrong with starting small and then getting a more prominent space once the company grows.
As you work on your business plan and prepare to open your small company, you will want to be sure you factor in all of these expenses.