Starting your own business sounds like a great idea. Finally you can be your own boss, work your own hours, make your own decisions and so on. You then plan and decide on what business you would like to do, the location you want to be in and even the name of our company.
You are ready to go, or so you think. You thought you saved enough money to cover all the expenses that come with starting your on company but then those pesky hidden costs raised their ugly heads and start eating into your savings.
It happens all the time so before you do a start up there are some hidden costs you need to prepare for and be ready to pay. Here is a list of some of those hidden costs.
Staff Training—They may already have experience but they do not have experience in the way you want things done or the way they need to be done. You will have to provide some form of training so they can do their duty correctly
Business Insurance Premiums—This differs from business to business as liability differs between different business operations. What this will cost you will depend upon the type of coverage you want and what you are required to have. Here is how you can save money on insurance premiums.
Taxes—What most new business owners do not realize is that they may have to pay their taxes whether they have income or not. Some companies have to do a prepaid tax, so you need to watch out for this cost. It can really hurt
Permits & Licenses—you wouldn’t believe this but if you own a bar or restaurant you have to have a music license to ply music in your establishment. Permits and licenses are sneaky so you better research and find out all the ones you need to have before opening day.
Processing Fees—Even processing your customers’ credit cards come with a fee. This fee usually is in the 1-3% range on every transaction. I t is okay to shop around the different banks to see who will give you the best rate.
Deposits—If you are a new customer, don’t be surprised if the utility companies demand a deposit for their product service. The electric company, gas company and other utilities may not trust you like other people do so be prepared
Hidden costs always arise so don’t think it won’t happen to you. The experts say that you should add another 20% to your start-up cost estimates in order to be better prepared to handle them. These nuisance costs can make things really difficult for you if you do not get ready and set some money aside to pay them