Starting your own business is exciting, but can also be demanding. To help you plan for unexpected expenses, consider some of the following hidden costs that come with starting a company:
To help plan for hidden technology costs that come with starting a business, an article on www.financialpost.com suggests that after your technology needs are identified, you should take the acquisition costs for that technology and double it since technology comes with bugs and quirks. This should alleviate hiccups in your budget down the road when additional maintenance and other costs arise.
In their primer on estimating the cost of starting a business, the U.S. Small Business Association explains legal fees and fees for state incorporation. You might account for the lease on your building and your office furniture without realizing you’ll need a business license as well as a city permit, so check your state and local laws and ordinances to understand what license and incorporation fees you’ll need to pay.
Hidden Employee Costs
If you hire an employee and pay them $14 an hour, your true cost for that employee will be closer to $20 an hour. That’s because according to this article on www.CNNMoney.com about how much an employee really costs, you need to account for the addition of benefits, training, and taxes in that number, which can easily be 20% of the employee salary. If you’re budgeting for staff, make sure you use the right figures so you won’t be surprised later.
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