When launching a business, there are endless things to consider. From designing products and developing services to researching your market and creating a brand, you’ll be inundated with things to do. However, calculating your running costs is one of the most important tasks. Knowing how much your business will cost to sustain is essential, particularly if you’re relying on investments to get your enterprise of the ground. Although there are plenty of costs you’ll need to factor in to your business plan, there are a number of expenses which new business owners often overlook. To ensure you’ve got everything covered, take a look at these three start-up costs you have yet to account for:
Fees, Permits and Training
Depending on what industry you’re going to operate in, there may be costly permits and licenses you need to obtain before you can operate. If you’re entering the food and drink industry, for example, you’ll need to ensure you have the appropriate certifications. Alternatively, if you’re going to be operating in a certain geographical region, such as a city centre, you may require licenses. Furthermore, your staff may need training and documentation before they can work too. This can add up to a significant amount, so be sure to find out exactly what fees you’ll need to pay and factor them into your business plan.
Even if you’re leasing commercial premises, rather than buying an office, unit or store, it’s likely you’ll be responsible for your company’s utility bills. When you think about the energy you’ll be using, you might be surprised at just how much utilities can cost. Fortunately, a little research will help you to access the best deals. By searching for the lowest commercial electricity rates, for example, you can ensure you get a great deal on energy. Similarly, you can find competitive business water prices online via comparison sites. When you can reduce the cost of your utilities, you can drastically cut the cost of your overheads and make your business more economical to run.
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As a business, there are various types of insurance you’ll need to consider, including liability insurance, employee insurance, professional indemnity insurance and business interruption insurance. Although you aren’t legally required to have some types of insurance, you can protect your business and your investment by making sure you have comprehensive policies to protect your enterprise from various risks.
Planning for Your Company’s Future
Underestimating your business’s running costs can get you off to a bad start. When funding is tight, it’s important that you can cover your essential expenses without impacting your operations. By fully researching the likely cost of your operations and estimating them carefully, you can ensure that you’ve got everything covered before you start trading. More importantly, you can ensure that your business is fully compliant with relevant laws and regulations. From having the right insurance to applying for relevant permits, there are some business costs which are simply unavoidable.