Unexpected Business Costs to Look Out For
There are so many articles online that talk about setting up a business with just a laptop and a phone. But these rather simplistic articles quite often fail to mention the associated costs with setting up a business that reaches beyond your close friends.
For a start, key questions like how to pay bas online, how to set up a cheap website and how to market your business all require an understanding of cost and benefit. Yes, you can set a business up with a laptop and a phone, but it’s not as simple as opening a word document and starting to write. You need to think carefully about the costs involved if you want any success at all.
Tax and Compliance
When you first start a business, it’s easy to get caught up in how much you are earning and forget all about the various taxes you will need to pay on that income. If you can, you should keep a running total of your predicted tax invoice so that you don’t over-invest or fall short of the required sum when it is requested. You can use this sheet to help you but if you are new to business, hiring an accountant or bas specialist is a good idea.
Some businesses must be compliant with particular guidelines and many join groups and associations to prove this compliance. For example, an architect is likely to be a member of the Institute of Architects. Be aware that some institutes will charge a fee for membership. You may also need to pay for compliance checks.
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You can set up a business with a laptop and a phone but don’t forget that you will still need to pay for electricity, internet and any software, updates and maintenance you might require. Small start-ups are often stung with their first utility bill so it’s important to find a good rate and shop around regularly to get the best deal.
Actually, shopping around is a bit part of managing your cash flow. You should think carefully about every purchase you make and ensure that it is the best value for money and is definitely essential to running your business. During your first year of business, you might have to make do with a few things but remember, business isn’t a sprint.
Just as you should insure your home and contents, you are strongly advised to insure your business assets too. There are a few different types of insurance that small businesses might like to consider including public liability insurance, more general business insurance and even tax audit insurance.
Again, you should shop around for insurance and think carefully about the kind of insurance you will need. It’s just as easy to be taken in by unrealistic fears as it is to be too cavalier about the risks you are taking on.
Business is always about balancing the numbers so before you do anything, you should write a list of expenses you will have. And don’t forget these 3 common unexpected costs when you do!
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