5 Hidden Costs Of Running A Business
Guest Post by Lisa Michaels
It’s easier than ever for people with an entrepreneurial spirit to launch a business. With countless tools to help you get started, from content management systems to checkout tools, it’s a lot simpler than it used to be.
However, just because launching a business in the digital world is easier, it still comes with many challenges and expenses.
If you don’t have the financial resources to keep your venture going, you can find yourself sliding into a panic.
After you’ve done your research and found a small business strategy that’s right for you, make sure you’re aware of some easily overlooked costs of running a company.
#1 Software Subscriptions
Compared to the hardware prices that companies once had to pay to get their team equipped in traditional business environments, software subscriptions are often more affordable. However, there are still various software-as-a-service solutions that you need to pay for when operating online.
Everything from word processing tools to grammar checkers and website development tools will have a cost associated with them. To ensure that you’re not missing out on accounting for these expenses, create a list of the key things that you use to run your company.
These might include:
- Premium plugins and widgets
- Email marketing services
- Social media marketing tools
- Content management systems
- Website builder services
- Landing page tools
- Google analytics and PPC services
- Keyword research services
#2 Promotions for Employees
Although your company might start off with just you, you’ll need to get some extra help somewhere along the line. Trying to do everything alone can end up putting your business at risk after a while. This means you’ll need to think about what you’re going to pay your employees to keep them engaged and motivated.
Failing to invest properly in your team members could mean that you lose your talent to competitors in your space. Think about the implications of giving your team members promotions and raises as they continue to work with you.
You might need to think about the costs of perks too. For instance, does your business offer any healthcare solutions or free gym memberships? Just because something is free to your employees, it doesn’t mean that it’s not going to cost you.
#3 Mismanaging Assets
Your business will collect a wide selection of assets over the years. This includes everything from the computers you use, to fax machines, and production equipment. Tracking your assets and making sure you know when you need to replace and upgrade them is essential to your success.
If you allow your assets to become outdated, you could end up paying more on repairs than you would on simply upgrading. Asset management tools help you get an insight into important information about how your business equipment operates.
However, this also comes with its own costs.
If you’re giving crucial assets to your employees who work from home, you’ll need to track those components too.
#4 Problems with Time
One of the biggest things that many businesses forget to track when they’re looking into the expenses of running a business is the costs associated with time. Mismanaging time is a problem for any business owner, as your time is one of the most valuable things you have.
One way to make sure that you’re using your time efficiently is to invest in time tracking apps that allow you to discover how many hours you’re spending on things like responding to emails and having meetings with your team.
If you’re spending too much time on things that don’t support consistent business growth, it might be time to delegate some of your tasks elsewhere or look for better ways to arrange your schedule.
#5 Professional Services
Professional services fall outside of the realm of employees because they often address the temporary relationships that you have with contractors and freelancers. Legal fees for lawyers who help you set your business up can cost a lot depending on the guidance you need.
If you’re not great with numbers, or you think you might have a hard time tracking all business expenses and income, you might consider hiring an accountant or book-keeper. You can sometimes negotiate with some experts to keep your fees as low as possible.
Image by Pexels
Ultimately, running your own business can be an incredible experience, but it can be a very expensive one too. Make sure you know exactly how much money you need to set aside for all the different costs in your company – including the hidden ones.
Author Bio: Lisa Michaels is a freelance writer, editor and a thriving content marketing consultant from Portland. Being self-employed, she does her best to stay on top of the current trends in business and tech. Feel free to connect with her on Twitter @LisaBMichaels.