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When you’re ready to launch a new business, it’s easy for the excitement of the moment to cloud the logistical realities.
Have you considered all the costs you’ll incur as a new business owner? If you’re not aware of some of the most pressing costs lurking beneath the surface, you could hurt your budget and the overall rollout of your business.
That’s why any entrepreneur must consider the expenses that accompany starting a new business. Read on to uncover what they are!
Paying for Insurance
Yes, general liability insurance is a known must-have for all new businesses. But you may need other forms of coverage depending on the type of business you’re running. For instance, you could need commercial auto insurance if you are operating a business that rents or uses vehicles.
Or you could need workers’ compensation if you’re employing other people. All of these additional coverages add costs that can make getting your small business started harder.
Further, you may face higher premiums if your business is in a field like construction, where the risk of injuries is higher.
Working with Experts
You might prefer tackling finances, marketing, and other tasks yourself to save money for your small business. But you’re better off outsourcing these responsibilities to experts. You’ll save time and ensure accuracy when you let attorneys or CPAs, for example, do the work for you. After all, you don’t have time to go through the training or pay the CPA exam fee to become certified yourself.
A Certified Public Accountant (CPA) is vital for ensuring your taxes are accurate. You don’t want your business to be derailed by headaches like financial penalties for failing to do taxes properly.
Additionally, if you’re in a highly regulated field, you’ll need an attorney to help you navigate the intricacies of adhering to mandates. And to give your business visibility, you’ll need the help of talented marketing experts, like web designers or content creators. Make sure you’re accounting for these experts and the associated costs in your business plan.
Paying Necessary Fees
Establishing a new business comes with licenses and other credentials to operate legally. You may need health permits if you’re opening a restaurant. Or you may need business licenses related to transportation or cargo if your business is involved with shipping goods.
For businesses in specialized fields, you’ll need critical credentials. Real estate agents, nurses, accountants, and insurance agents are among the professionals who need to pass licensing exams to obtain required licenses.
Additionally, plan on seeking operating licenses and getting necessary building permits. Signage licenses and zoning permits are other considerations when you’re getting started with a business.
And if you operate across different states, be sure to know what is required in each state where you do business. The costs connected to licenses and credentialing can quickly add up. Investigate the requirements. Don’t overlook these hidden costs as you’re mapping out your initial budget.
Starting a new business can be a time of excitement and intensity. But don’t forget to factor in the expenses that enable your business to be compliant and successful.
You’ll need the expertise of accountants and attorneys to keep your finances in order. And you should be prepared to pay fees for permits and licenses that allow your business to stay open. When you’re mindful of these costs on the front end, you can lay the foundation for a great start.
Reviewed and edited by Albert Fang.
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Article Title: What Are the Hidden Costs of Starting a New Business?
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