When you’re starting a business, it’s important to think about all of the potential costs involved. From the initial investment to the day-to-day expenses, there are a lot of things to keep in mind.
One of the less obvious costs of running a business is the hidden expenses. These are the costs that you may not think about right away, but they can add up quickly. Here are a few of the most common hidden expenses:
Rentals
Businesses owners often rent equipment and supplies that they only have to use on occasion. For instance, commercial truck rental is one example of the hidden costs of running a business. Businesses of all sizes face hidden costs—some small, some large—that can impact the bottom line. Commercial truck rental can be a significant expense for a business, and it’s important to factor that cost into any decision-making process.
Office Supplies
If you have an office, you’ll need to buy a variety of supplies, from paper clips to printer ink. These costs can add up quickly, so be sure to budget for them. This includes the obvious necessities, as well as supplies such as custom pocket folders. In addition to being functional, items like these give your company a more professional appearance.
Employee Taxes
If you’re a business owner, you’re likely aware that you need to pay both federal and state taxes. But what you may not know is just how much this can add up to. In fact, tax expenses can be a significant expense, especially if you have a lot of employees.
Marketing and Advertising
When it comes to promoting your business, you’ll need to invest in some marketing and advertising expenses. This can include anything from designing a website to placing print ads in local newspapers or magazines. However, it’s important to remember that not all marketing and advertising tactics are created equal. Some will be more effective than others, so you’ll need to do your research and figure out what works best for your company.
Professional Services
When it comes to taxes, bookkeeping, and legal services, it’s important to remember that professional fees can add up quickly. So, if you need assistance in any of these areas, be sure to budget accordingly.
Equipment and Software
When you’re starting a business, there are a lot of expenses to consider. One of those expenses is buying equipment or software for your business. This can include anything from computers to accounting software.
Utilities
Unless you’re working from home, you’ll need to pay for some type of office space. This could be a physical office or a warehouse. No matter what, you’ll need to pay for utilities like electricity, water, and gas. Make sure you include these costs in your budget.
Travel Expenses
When traveling for business, the biggest expense you’ll likely incur is airfare. Depending on where you’re traveling to and from, the cost of a plane ticket can be expensive. However, there are ways to save on airfare. For example, you can purchase tickets well in advance or look for discounted fares.
Retirement Savings
Self-employed individuals need to save for their own retirement. This can be a significant expense, so be sure to budget for it. Retirement savings options include individual retirement accounts (IRAs) and 401(k) plans. Both have their pros and cons, so you’ll need to decide which is best for you.
Insurance
Most business owners know that they need to buy insurance to protect their assets, but many don’t know how much this expense can add up to. Depending on the type of business you have, insurance can be a very costly monthly or yearly expense. That’s why it’s important to include it in your budget and plan for it accordingly.