There are many obvious startup costs that come to mind when it comes to beginning a business, such as rent for your commercial space and insurance. However, a few expenses may fly under the radar and cause you difficulty later down the road if you don’t account for them as you consider your small business financing options.
Investopedia.com reports that one cost that you might not include in your startup expenses is research. However, it’s important to take this into consideration in the initial stages of developing your business – researching your potential consumers prior to opening can give you a better idea of how to market to your products and services to your target audience.
2. Licenses and permits.
Another expense that you might forget to consider is licensing. If you are operating a storefront, you’ll likely need a series of licenses and permits in order to run your business in town. Everything from health codes to fire inspections must be accounted for when calculating your startup costs to ensure that you don’t run into trouble with the law once you open.
3. Consultants and experts.
If you have little experience in entrepreneurship, you’ll likely want someone with a background in the industry to help you hammer out your business plan, according to PowerHomeBiz.com. This means hiring a professional who can provide you with the training you need to find success in the industry of your choice. Although it might seem like an unnecessary expense, taking the time and effort to hire a consultant can help you avoid making common entrepreneurship mistakes.
WomenOwned.com, a business advice site, states that it’s important to consider the expenses of everything from your phone to internet bill prior to starting your company. Without these utilities factored in, you may quickly find it difficult to cover your monthly expenses.
PowerHomeBiz.com suggests taking inventory and considering these type of underlying costs as well. By speaking to potential suppliers about their fees ahead of time, you can determine how much money you will need to spend on development.
While it may take a certain amount of time to figure out the small details when estimating your startup costs, making sure you include every expense can help you avoid financial difficulties in the future.