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There is a tremendous amount of work that goes into launching a new business which can make it a stressful and daunting process. One of the main areas that will need attention, yet one which is often overlooked by new entrepreneurs, is the various costs that must be considered. There are obvious costs like the business location, stock and wages, but there are also a handful of less obvious expenses that you may need to factor in.
Here are a few examples of hidden costs that you might have to factor into your budget:
Insurance
Your business is likely to require various forms of insurance and this can be an enormous expense. It is also a vital one because if something were to happen and you were not insured then it could destroy the company. You can often save costs on insurance by shopping around and consolidating policies.
Employee Benefits
If you plan on hiring staff then it is likely that you have factored in their wages but you must not forget about the various benefits that you will need to cover. This includes pension contributions, insurance, paid time off, stock options etc. This can add up so if this is going to hamper your business then you could look to outsource work instead of hire employees.
Training
A business is powered by the staff so you will need your staff to be well-trained to complete their job. Some companies choose to do this in-house but for the best results you will need to use a specialist which can be a cost – despite being a large cost, this should help your company to be more successful.
Transportation
You and your staff will need to be able to easily get around for business purposes such as visiting clients, attending meetings, going to conferences etc. This means that a company car is a smart purchase which will allow you to get around with ease. Vehicles can be a huge cost but you can make savings by purchasing the vehicle from a used car dealership like Unbeatablecar.
Marketing
One of the biggest challenges that a new business faces is getting people aware of the brand (particularly in competitive industries). Marketing is an essential cost at this stage and it is not cheap. Ultimately, you should see positive ROI down the line once you start to increase brand reputation and awareness.
There are many costs to factor in when starting a new business and the above are a few of the less obvious but hugely important costs. The key is to work out all of these costs and to make sure that you acquire enough funding from your investors to cover all of these costs so that you can get the operation up and running to a high standard.
