Unavoidable business expenses
For a budding entrepreneur, building your own business up from nothing is the stuff that dreams are made of. However there’s more to starting a business than just a nice office and a product line. Business costs are all in the details, and this is usually when entrepreneurs come unstuck. It’s completely normal to get swept away in the excitement of creating a logo and finally nailing your company ethos, but in order for your business to be protected, firmly established and of course, successful you’ll need to acknowledge all the little business costs too.
Unsure where to begin? Read on for the business costs you simply cannot ignore.
Health and safety
This is the big one. Health and safety. If you want to avoid lawsuit after lawsuit and a barrage of personal injury claims against your business then health and safety needs to take a considerable chunk out of your budget. Danger signs are essential, everything from “warning: dangerous site” to “caution: hot water” needs to be catered for. You’ll also need to ensure that if staff need protective clothing such as high visibility jackets or safety helmets that they are provided. You’ll need health and safety policies, regular fire safety audits and checks not forgetting all the equipment that comes with it. Do some research and make sure your property and those within it, are safe.
Don’t be tempted to build your own company website. Instead, set aside some of your budget to commission one instead. Have it created by a real professional, someone who can create a website that is attractive, reflects your company’s style, has all the relevant imagery, is easy to navigate and is of course, user friendly. Creating one yourself might seem like your saving money, but with all the time and frustration it will take, not to mention the fact that it probably won’t look very good (lets be honest), it’s simply more cost effective to have one built for you.
Keeping your company up to date with the latest regulations and training is imperative for it’s success. You’ll want your staff to be able to complete their jobs to the best of their ability and also safely. Which is why you’ll need to invest in plenty of training. Courses, materials and registration fees for certain examination bodies and organisations aren’t cheap!
You might think you’ve hit the jackpot with your new office space: great location, great views, and great neighbors. However, when choosing a new location for your business it’s the rates and utilities that can often bring you back down to earth. Rent costs, electricity, gas, water and even maintenance costs if you’re sharing a building with other businesses can be expensive, especially in the first few months of trade when you’re not yet making a profit.
Don’t skip this one. Public liability insurance, commercial property insurance, errors and omission insurance … all these premiums will soon add up. Before you take out any policies, speak to an insurance broker who can help you find the right policies.