Running a business is expensive. The overhead costs of keeping your business open, as well as legal and tax expenses, add up quickly. It’s important to find ways to minimize your costs when you’re first starting out so that you can stay solvent and in business for the long haul.
In this brief article, I will talk about some of the things you need to keep in mind when setting up your business so that you don’t run into any financial trouble down the road.
It Takes a Lot of Money to Get Your Business Off the Ground
Running a business is expensive, and it can be intimidating at first. But the good news is that you don’t need to spend all that cash at once. You just need to get started and remember that there are plenty of ways to save money on your startup costs.
The Basics
For starters, you’ll need a business name and logo, which will cost around $200-$300 in most cases. You’ll also need a business license; depending on where you live, this will run you around $100-$400 (though it may be less if your county offers discounts).
Insurance
Once you have those pieces in place, it’s time for insurance; whether it’s general liability or specialty coverage depends on what kind of work you do (if any) but expect to pay anywhere between $300-$900 for each policy before taxes.
Equipment
Next up is equipment! And by “equipment,” I mean everything from computers and printers all the way down through software licenses and office furniture; figure about $2k per month for essentials like laptops and printers alone plus several hundred bucks per month more if adding things like scanners or other specialty gear into the mix.
An Office or Workspace
Of course, you will also need a place to conduct your business. If you have a home office, you can save this cost, at least when you’re just starting out, but eventually, you will need a real workplace, and that will be several thousand dollars per month minimum, and possibly much more.
As you can see, the cost of running even a very small business can easily be $5000 or more each month; and as your business grows, you’ll be adding zeros to this number.
Hidden Fees
One of the most challenging aspects of running a small business is keeping track of all your expenses. You have to pay for everything from office space to marketing materials, and there are many hidden costs that can quickly add up.
For example, many businesses tend to underestimate how much they will spend on legal counsel, accounting services, and other professional services such as public relations or human resources management.
Conclusion
Remember, everyone has to pay for the things they need, and a business is no exception. I hope this article helped educate any entrepreneurs who are just starting out with their own ventures about some of the costs that come along with running a business.