When you’re preparing to start up a new enterprise for the first time, there are a lot of hidden costs you might not consider at first. Here are 10 things that you NEED to include in your budget that are normally left out at first glance.
- Licensing Fees
New professionals and business owners pay licensing fees to government entities before being issued a license to legally operate within a specific area. The exact amount paid heavily depends on the job type, as well as the jurisdiction in which the license will be issued.
- Surety Bonds
Many professionals must purchase a surety bond before they can get a business license because bonds provide a financial guarantee that businesses will follow certain regulations. Bond fees vary for a number of reasons. Professionals with a poor credit score typically pay more since surety bond companies take a greater risk in financially backing high-risk applicants.
- Insurance Policies
Depending on the number of employees you have and the nature of your business, you may need to look for a health insurance provider to work with your employees. Many business owners take health insurance premiums out of their employees’ paychecks, but some offer health insurance in addition to payment.
- Lawyer Fees
As a business owner you should keep in mind the possibility that you might need to pay court costs or lawyer fees at some point. Budgeting for such situations—whether against you or in favor of you—is key should your reputation ever be at risk.
If you’re working in a technical field that requires the use of computers, consider the additional costs you will incur each time you add to your staff. For example, hiring a processor to do some basic work might save your sales team time, but you need to have funds to purchase the additional equipment upfront.
Internet, electric, and water bills typically go up along with the number of employees. And don’t forget the extra costs associated with frigid winters or blazing summers in certain locations.
When starting a new enterprise, developing an effective advertising strategy is often necessary to attract new consumers to your business, and persuasive marketing can cost a pretty penny.
- Delivery Charges
No matter the nature of the business, postage and package delivery fees are additional costs that you’ll probably have to pay. Whether it’s overnighting paperwork or shipping products to consumers, delivery charges can add up at the end of the month.
- General Supplies
Don’t forget about the costs of paper and printer ink, not to mention that fancy water cooler you’ll need to boost employee morale. Pens, pencils, business cards, and company letterheads are just a few more supplies you might need to budget for.
- Repairs and Other Maintenance
Getting your enterprise started off on the right foot is one thing, but maintaining effective output requires additional effort and funding. You’ll want to set aside some funds for emergency situations, or else be prepared to use your credit cards.