Starting a business can simultaneously be the most exciting and most terrifying thing to do. But, you did it.
Renting a retail space and having personalized business cards is the tip of the iceberg when it comes to money spent.
With any new financial endeavor comes expenses, and lots of them. Though it may seem daunting to look at big-ticket items, there are still plenty of smaller expenses to understand and pay.
Read on to understand five potential small business costs.
Credit Card Fees
Cash or charge? Credit card processing fees are nothing new to customers, but they may discourage some with small purchases.
After all, is a bottle of water at a convenience store worth an additional seventy-five cents convenience fee?
Some businesses add the charge to the overall prices, making customers that pay with cash also chip in. The fees need to be recovered somehow, though. You need to keep the light on too.
Licensing fees vary from local policies to federal industry regulations. Consider it an additional fee to pay aside from taxes.
Fee’s may vary from city, state, and whether your business will be a brick and motor assigned to one location or an online platform available nationwide. The more you reach, the more fees you will incur.
Licensing could get very pricey.
Small Business Costs by Employees
Unless you plan on working for free and 24 hours seven days a week, then you’ll probably need an employee or two, and maybe more.
Salaries and wages are costs we are aware of, but what about the cost of employee turnover?
The cost of employee turnover can be time, money, and headache. Not only would you have to spend time on training, but also money. You can add recruitment and training to your’s or an employee’s to-do list.
It may even go as far as having to contest unemployment claims.
We tend to average out what potential utility costs will be when we draw up our business plan. However, did you tailor yours to what your primary needs will be? Water, gas, electricity, are your basic utility needs.
But will your small business require any other utility costs? A weekly laundry service, trash pick-up, and internet service are all utilities if your business requires them to function.
Equipment: It’s what keeps your business running and usually where most of your initial budget is assigned to.
Maintenance can be general upkeep of your equipment, redecorating your shop, or even a deep clean.
After all, image is very important to a small business, especially when it comes to attracting new customers.
Value Your Time
A small business is a BIG commitment.
Not only will you need to factor in obvious small business costs like overhead, wages, and utilities, but you will also need to pay attention to the less obvious like fees for credit cards and license.
Interested in learning more about small business needs? Check out our other blog posts to learn more.