Published On:Tuesday, December 3, 2013
Posted by devil
4 Hidden Costs to Be Aware of for Your Small Business
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You've got an idea that could change the world - or at least your customers' worlds - and you've decided to take the plunge and start a small business. Now it's time to figure out how to make it happen without break in the bank. Of course, you know you'll be paying for salaries and inventory, but there are a slew of business costs that sometimes catch new entrepreneurs by surprise. Here are four hidden costs to be aware of.
Legal services
No one wants to have to hire a lawyer, but it's a good idea to budget for legal expertise and shop around before any crisis hits. Talk to fellow entrepreneurs and see which firm they recommend. When you're in a legal bind, you don't want to skimp on time with your attorney because you're worried about the $150 per hour charge. Set that money aside from the get go and save yourself the headache.
The Office Itself
In order to get your business going, you may not realize how much money goes into the physical location. When you add up rent, computers, chairs, desks, etc, things can start to pile up fast-especially for a new business owner with limited funds. One hidden price to make sure you look out for is utilities. Keep an eye on the office thermostat and be sure to turn out the lights when everyone goes to lunch and leaves for the night. You can bundle your phone and internet to try and save some money, but oftentimes those high prices can't be avoided because you need both of those things. Basically, if you treat your office like your home and try to conserve energy, you won't be surprised by your bills at the end of the month.
High Employee Turnover
Don't just hire anyone. A few hiring mistakes can quickly cut into your profits if you have to fire a recent employee or an employee leaves after a few months. Not only do you have to spend company resources on the hunt for a new applicant, but you've got to spend valuable time re-training the replacement hire. Keep turnover to a minimum by thoroughly vetting job applicants. It's sometimes worth paying a little more upfront to hire a quality, experienced worker.
Fees From Credit Cards
If your business allows customers to pay for your services and products with credit cards, you will end up paying about 3% in fees (of the total charges.) Many businesses don't realize this until they get slapped with these fees, but if you are prepared for it, you can plan accordingly. Today, most companies use credit cards, so this could be a difficult one to avoid. However, you can try to save money in other areas by using business intelligence strategies. You can visit Domo.com if you are interested in learning about strategies that can save your business both time and money.
Starting a business is an incredibly difficult task. Keeping an eye on the costs that can fly under the radar and creating a budget that accommodates them is a great first step to turning a profit. So remember to consider legal fees, office supplies, repairs and employee turnover when you balance your new business's budget.
What are some other costs associated with running a small business? How do you recommend cutting costs when running a small business?
I would like your comments and feedback on this and other articles at http://www.roberttaylorandrews.com
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