5 Unexpected Expenses for Small BusinessesJune 29 2016, 1 Comment
Starting your own business is an exciting and rewarding challenge. Emphasis should be placed on the 'challenge' part of that sentence. There is no greater challenge than building your own business and going against the statistics to not only survive the first five years but to prosper. One of the biggest challenges facing small businesses in the modern economic landscape is making ends meet in the face of endless challenges. Unexpected expenses are one of the most common reasons for hardship in small businesses. Before heading out on a new business venture, make sure you’ve considered the following unexpected expenses so you can be prepared for anything.
Some specialist businesses will require professional accreditation to allow you to operate as a sole trader or small business. And even if you don’t require specialist accreditation, there are many benefits to being a member of a professional body. It will often give you access to networking events and inspire trust in potential customers or clients.
Keeping up-to-date with recent technological advances is essential for keeping ahead in business. Many businesses fail to budget, or underestimate the required budget, for basic technology such as computers, printers, scanners and phone lines. If you have a laptop that you’ll be taking outside of the office, make sure you have the right level of insurance coverage should disaster happen.
Making sure your contracts are in order is essential for a smooth running business. Mistakes in the early stages of building your contracts can cause devastating problems in the future, so it’s important to make sure you have these checked over by a legal professional. This can be costly, and if you require ongoing legal advice, this can quickly add up.
Hiring new personnel will cost you either way you do it. If you handle the hiring in-house, you will be paying in your time, whereas if you outsource to an agency, you will have to pay them a commission. After you’ve built a team, you’ll also have to budget for training and development.
In the beginning, you might manage to build a business on word of mouth alone. But after the buzz dies down and you business begins to grow, you will have to invest money in marketing. Marketing is a broad term that can cover anything from building a website to printing business cards. Failing to plan for this expense might leave you without a steady flow of business.
So how can businesses prepare for these unexpected expenses? The most important aspect of any business is to have a solid business plan in place. From this, you can build a budget that will cover every possible instance. Using bookkeeping software is the best possible way to keep on top of your business finances and be prepared for anything.