Now that you’re on your way to starting your small business, you’re probably thinking about how you’ll spend your start-up capital. There’s rent for your office space, inventory costs, and paying your staff. But what about the small business start-up needs that are commonly overlooked by novice entrepreneurs? Read on to learn about these additional costs.
Just like home and car insurance, business insurance is crucial in protecting against unexpected losses. Premiums will vary depending on the type of business you’re running, but insuring your business is an essential step before you open your doors. Set aside a portion of your new business start-up funding to start paying for business and liability insurance.
Advancements in technology have made paying with a credit card easier than ever for you and your customers alike. However, credit card companies and payment processors each take a small percentage from every swipe of the card. Factor these fees into your business’s financial planning and pay attention to those numbers when you choose a payment processing company.
Be sure to factor marketing into your budget every month. Unless you have a large customer base already waiting for you to open your doors, you’ll have to do some outreach. Keep room in your budget to pay marketing professionals who will help you advertise your business on a variety of platforms.
The Break-Even Period
The early months of your business probably won’t be terribly profitable. While your business finds its footing, you will still need to maintain a roof over your head. Set aside enough money to keep yourself fed and housed while you wait for your business to break even and eventually turn a profit.
Starting a new business is exciting and, at times, nerve-racking, but it’s ultimately a rewarding experience. In the early days of your business, keep a close eye on your finances. Remember these commonly overlooked small business start-up costs and make room for them in your budget.