Starting and running a business is no small feat. In addition to the myriad of details you have to keep track of, you also need to make sure you’re prepared financially. Part of that preparation involves creating a budget and sticking to it. But in order to do that, it’s important for you to know what things need to be included in it. To help you get started, here are the business expenses you might not have considered.
1. Taxes
For starters, you’re going to want to remember to set money aside to pay your taxes. This is one of the easy things that people can forget about and then get caught out with when the tax bill comes around. Although there are options for support that you can learn more about, if you can set aside the right percentage each month, it will help you in the long run.
2. Advertising and Marketing
Getting the word out about your business is crucial to its success, but it can also be one of the most expensive items in your budget. Traditional methods like print, radio, and television advertising can be cost-prohibitive for small businesses, so consider exploring digital marketing options like SEO, social media, and content marketing instead.
3. Employee Training
Whether you’re hiring your first employee or expanding your team, training is an essential (and often overlooked) expense. In addition to the cost of materials and instructors, you’ll also need to factor in time spent away from work as employees attend training sessions.
4. Professional Services
As your business grows, you may find yourself in need of professional services like accounting, legal advice, or IT support. While you may be able to handle some things on your own at first, it’s important to bring in experts when needed so that you can focus on running your business rather than getting bogged down in the details.
5. Office Supplies and Furniture
If you’re just starting out, you may be able to get by with a home office and a few basics from the local discount store. But as your business grows, you’ll likely need to invest in higher-quality office furnishings and supplies. This is especially true if you plan on opening a brick-and-mortar location; outfitting a commercial space can be expensive!
6. Travel Costs
If your business requires travel for meetings, conferences, or client visits, those costs will quickly add up—especially if you have to fly or stay overnight in a hotel room. If possible, try to schedule multiple appointments in one trip so that you can minimize your travel expenses. That way, you can make trips more cost-effective for your company too.
Keeping on Top of Your Expenses
There are many things to consider when putting together a budget for your business startup or expansion—far more than just the cost of goods or services rendered. By taking into account all of the potential expenses listed above (and others unique to your company), you can develop a realistic budget that will help ensure your business’s financial health now and into the future.
