Starting a new business is an exciting time. And full of endless possibilities. As a new business owner, there are many things you need to consider, such as creating a business plan, securing funding, and finding the correct location. However, other expenses can easily be overlooked, adding up quickly and strain your budget if you’re not careful. It’s estimated that new businesses can expect to pay between $30,000 and $40, 000 in startup and first-year operating costs despite some business ideas being able to get up and running for $0.
Read on for some expenses that can often be overlooked.
When starting a new business, you need to consider several types of insurance policies. These include liability insurance, workers’ compensation insurance, and property insurance. Liability insurance protects your business from lawsuits and other legal claims, while workers’ compensation insurance covers any injuries or illnesses that may occur on the job. Property insurance protects your business from damage to your property or equipment.
While insurance policies are an essential part of any business, they can also be costly. It’s important to research and shop for the best rates or work with experts such as Tivly to help you get the best prices. You may also want to consider bundling your insurance policies with one provider to save money. A single event can result in a devastating financial loss if you don’t have adequate coverage.
Legal and Regulatory Fees
As a new business owner, you’ll need to navigate a complex legal and regulatory landscape. You’ll need to obtain many fees and licenses, such as business licenses, permits, and certifications. You’ll also need to comply with various regulations, such as zoning laws and environmental regulations.
Working with a lawyer or legal professional can help ensure you comply with all applicable laws and regulations for your business. Failing to comply with these laws and regulations can result in fines and legal fees. Budgeting for these fees and obtaining the necessary licenses and permits before starting your business is essential.
Running a business requires a lot of financial transactions, such as deposits, withdrawals, and wire transfers. These transactions can result in bank charges, such as monthly maintenance, overdrafts, and transaction fees.
Costs can range from $8 to $40 per month for business accounts, or you can pay around 0.50% per transaction on purchases from business accounts. Choosing the right banking institution and account type for your business is essential to avoid these fees. Look for a bank offering free business checking accounts or accounts with low or waived fees over a particular spend.
Phone and Internet Expenses
In today’s digital age, having a reliable phone and internet connection is essential for any business. However, these services can also be costly, especially if you’re not careful. Save money by shopping around for the best rates and consider bundling your phone and internet services with one provider.
You may also want to consider using VoIP (Voice over Internet Protocol) services, which can offer significant cost savings compared to traditional phone services. Additionally, you can deduct a portion of your phone and internet expenses on your taxes, so keep accurate records.
Starting a new business can be a rewarding experience. However, it’s essential to be aware of potential expenses that can easily be overlooked. Insurances, legal and regulatory fees, bank charges, and phone and internet expenses are just some of the costs you’ll need to factor into your budget. By staying ahead of these expenses, you can ensure that your business stays on track and avoids any financial surprises down the road.
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