Prepare for These Surprise Costs in your Startup
You have a great idea for a business and want to put your idea down on paper and bring your dream to life. However, starting a business isn’t as easy at it seems and there are many different hurdles you could run into during your journey into the world of startups. Here are some of the top five surprises that people run into when starting a business that you should be prepared to handle.
Many new business owners aren’t prepared for the exorbitant costs that can come with opening a business. In addition to filing fees, you may find yourself needing to hire an attorney to ensure that you’re doing everything by the books. While this can pay off in the long run because you’ll have peace of mind knowing that everything was done properly, attorney’s fees aren’t cheap and you may end up paying more than you originally expected. You may also have to pay taxes on your business and if you aren’t prepared for this you could end up with a nasty surprise come tax time.
Your business will likely need a location to house its operations. The costs associated with renting or owning a business location can quickly add up, especially if you’re solely responsible for repairs and other associated costs such as paying to keep the lights on and heat running each month. If you finance your location you’ll need to factor in a monthly mortgage and property taxes as well.
Insurance seems to sneak up and surprise most new business owners of startups. In addition to helping offset some of the costs associated with paying for health insurance, you also need to have insurance to cover your business. Insurance needs can get complicated depending on what type of business you own, so you should meet with an insurance professional to see if there are any discounts you can get on bundling and to be sure you’re not purchasing insurance your business doesn’t need.
Once you get your business up and running, you need customers to keep it going and bring in revenue. To do that you will need to pay for marketing to help spread the word about your business. Unless you have a background or degree in marketing, you’ll need outside help to do this and costs can add up quickly. Many business owners of startups are often surprised by how much it costs to advertise, but it’s necessary to help your business grow.
If you can be prepared for these unexpected expenses, your business won’t suffer. The more prepared you can be the easier you can handle these expenses as they come up.