When you start up your own business, there are many costs that you need to think about. Whilst you may believe that you can just sort these things out as they occur, not being prepared for the costs that you will face could be catastrophic to your business. In order to be ready for everything that is around the corner, you need to remember these key outgoings, that must be budgeted for before you start out on the road to being a business owner!
One of the main things that you’ll have to pay out for is your office, and it’s not just the cash that you’ll be spending on renting – or buying – the space. You also need to pay for furniture, office supplies, and any of the tech that you will need for your team. Think about looking for used office furniture, which could help you to cut the costs. There are plenty of options out there to help you to start off your business venture, without having to spend unnecessary amounts on your office.
Needless to say, you’ll need to make sure that you’ve put some of your budget aside for the office technology, such as the software needed in order for your company to run smoothly. This varies depending upon what your business actually is, but it may include ID check software for customers, space on the Cloud, and any software needed for the day-to-day running of your business. Some of this is free, but you’ll have to pay out for most of it, so factor this into your office budget.
When you first start out as a business owner, you will need to get the advice of a few people, one of which is an accountant. This helps you to take charge of all of your finances and taxes, alongside insurance and other issues. Whilst you may pay monthly (or annually) to have the ongoing support of an accountant, make sure to have a bit of cash put aside, in case you need to pay upfront. Don’t overlook the importance of a good accountant in the first few months – and the long-term – of trading.
On top of this, you will also have to pay your team members’ salaries, which does take a fair bit of cash out of the business pot. Always put enough money aside to pay your staff, especially in the first few months of operating your business. It’s a good idea to start out with a small team, doing the essential tasks, as you can expand upon this later. Don’t underestimate how costly it is to get a great team on board with you, and budget enough to pay them well.
So, if you’re thinking of starting up a new business, then keep these costs in mind. Of course, there are a few other costs that you will encounter along the way, but being prepared for as many of them as possible is vital if you want to start off your company on the right footing. Good luck!