Running a business isn’t just about profit and expenses. There are a bunch of hidden and unexpected costs that you need to be aware of. From workplace injuries to equipment maintenance, here are the unexpected costs of running a business.
Insurance
Have you accounted for the business’s insurance costs? You don’t want to lose money or equipment if a lawsuit arises, so make sure that your insurance premiums cover claims that may arise. Also, make sure your policy is in line with the various risks and liabilities your business faces.
Permits and licenses
Depending on your business’s industry, you may need to pay for a variety of permits and licenses. These licenses may help keep your customers safe, but they can also be very expensive.
Office supplies and material
If you’re running a business, then you need to have office supplies. Plus, your customers may expect some sort of physical product. That means that you could be spending quite a bit on things like paper, ink cartridges for printers, and toner cartridges for fax machines and scanners.
Equipment maintenance and repairs
You don’t just need to buy equipment for your business. You also have to maintain and repair it when there are issues. For example, if you own a vehicle and use it for business purposes, then you may need to pay for things like fuel and an oil change every so often. If something happens to the car, like a blown tire or a flat battery, then you’ll have to pay for that, too.
Professional fees
Running a business involves a lot of paperwork and contracts with other businesses. You’ll need to account for professional fees that may arise from things like negotiations, audits, or even lawsuits. Professional fees can be expensive, so it’s best to plan ahead and budget accordingly.
Workplace injury
Unfortunately, accidents do happen in the workplace. If someone gets injured while working for your company, then you may get sued and have to pay compensation. In fact, workplace injury claims are increasingly expensive every year. To make sure you’re prepared for this expense, click here to get yourself covered.
Payment delays
One unexpected cost of running a business is having to wait for payments from customers. If you run your business on credit, then it’s important that you factor in lengthy payment delays and chargebacks into your budget.
Business growth
If your business is successful, then there are likely going to be opportunities for growth. This could mean hiring additional staff or buying new equipment to handle increased demand. Of course, these expenses will have to come out of your budget.
Shrinkage
In retail, shrinkage is the loss of inventory due to theft and doesn’t necessarily have a direct impact on sales. It can be a big cost for a business as there are likely going to be goods that go missing over time, so it should be apportioned accordingly.
Time spent on business
Running a business doesn’t necessarily mean you get paid extra. It means that it takes up your time, which is another cost. You need to factor in the hours you spend on your business and make sure that the amount of money you make will cover those costs.