There are many costs to incur when setting up a business, and some of these are less obvious than others. From marketing expenses to legal fees, waste management and various types of equipment, setting up a business is no easy task.
In this article, we will look at the main hidden costs and responsibilities that new entrepreneurs and business owners may miss and how these can be managed effectively to ensure that no angle is missed and you are set up for success.
Business Insurance
Insurance is an important aspect of starting a business, and it’s probably not something you have forgotten. There are different types, however, and varying costs which you may be yet to consider. What insurance you need depends on the industry you will be operating in and the nature of your business, but some of the popular ones are outlined here.
For example, public liability insurance is there to protect you and your business against anyone making a claim that they have been injured by the actions of your organisation or that their property has been damaged. This is something that is difficult to plan for, and public liability insurance ensures you are financially covered against a third-party claiming injury or damage to their property.
Employers’ liability insurance provides cover if an employee becomes injured or ill at work. This is a legal requirement not just for paid employees, but also for volunteers or friends helping on weekends. Businesses without this insurance can face a fine for not having it in place.
Another extremely useful insurance type, no matter the size or type of your business, is contents insurance. Having this in place ensures that stolen or lost equipment is stolen or lost can be replaced quickly – reducing that all-too-costly downtime.
Of course, there are many types of business insurance, many of which are specific to certain types of industry, but insurance generally is a cost that should never be ignored.
Waste Management
As a business, you are responsible for disposing responsibly of any waste on your premises. This can range from smaller costs to larger operations being required, obviously depending on your business and industry.
Waste disposal could be needed in various parts of setting up a business, including the initial refurbishment or building of any required buildings or premises. It could also just be waste created from day-to-day operations or objects left at the end of a project. When disposing of waste, there are a few things to consider, including the safe storage and removal of the waste. When disposing of it, you may require a skip for larger amounts of rubble, or there are various bin types available, such as 240 litre bins.
There are further things to consider should your commercial waste be classed as hazardous, as this will require more specialist removal and potentially higher costs.
The Cost of your Time
It is important not to underestimate the cost of your time while setting up a business or forget to factor it in. You may find that you are having to spend time away from the day-to-day tasks and money making, so to speak, to deal with things that require time and attention. As the boss, and running your own company, you may find yourself getting involved in areas you don’t need to as you try and oversee the whole operation.
Be wary of spending too much time in areas that you don’t need to and focus on what you need to do to establish the business and grow. If you have employees, trust, and allow them to do their job – taking over it yourself is a waste of time and resources, no matter how difficult it can be to let other people take control.
Services Fees
As a business owner, especially while setting up, it’s reasonable to want to organise as many tasks as you can yourself to save as much money as possible. There will most likely be, however, things that you cannot manage yourself, and that require professional or expert help.
for example, accounting, particularly for a limited company, or management of payroll may be activities that are more viable to outsource to an external organisation.
There are also fees that can include fees for solicitors and lawyers, should this arise, as well as subscriptions, licenses and qualifications that may be required as the business grows. Ultimately, there is no set list of fees and services, as this depends on your business requirements – but be aware of surprises along the way.
Overall
Along the way, as a business owner you are going to incur costs and charges, it is simply inevitable. If you are aware of the situations mentioned in this article, this will help you plan and budget accordingly.
Of course, there are going to be unpredictable scenarios along the way, and charges you haven’t planned for, but by doing your research and being aware of the most common issues, you can be prepared to help your business start up and grow as smoothly as possible.
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