A lot of people are thinking of starting their own small business, and a lot of thought goes into all the areas they’re going to need to control. Things like the payroll, how many employees you can take on, whether or not you can pay for overtime etc. are all big parts of the business plan. However, they’re not the only financial considerations we should take on.
In the same way we often miss out on completing tasks because we run out of time, we can lose a lot of money on the little known costs of running our own businesses. So before you start up (or decide you need to be a bit more cost effective in your operations!), take a look at this list to see where you’re going wrong.
So you know you have to pay for the right to use the office space, and you’ve got the wifi and the electricity all hooked up. Great, you’ve completed the basics! Of course you’re going to have to fork out for some computers, a water cooler, and a printer, but the outgoing cash flow doesn’t stop there either.
If anything breaks down, you’re going to have to pay for repairs. Similarly, if an upgrade is available, you’re likely going to have to pay for them too. Owning a computer is an investment at work, and you’re going to have to keep spending money to keep the technology working. Efficiency comes at a price after all.
Paying for a Bathroom
The bathroom is something we need to run efficiently as people, and that means there’s no option over not having one in your workplace. You probably just think a basic room with a couple of toilets and sinks in will be enough to keep everyone going for the day. However, there’s a lot of things you’re going to have to pay for to make sure the toilet is kept clean and tidy, and doesn’t become a hazard to your company.
First of all, you’re going to need soap to wash hands with, and then something to dry your hands off on afterwards. Electronics and water don’t mix well after all! Of course, you can debate hand dryers vs paper towels as much as you like, but getting something installed that’s going to keep on working will be cheaper than having to restock on tissues every month.
It’s not something anybody in business actually likes to think about, but there’s always a chance you’re going to lose profits out of your company, and you’ll have to end up covering these. Anything from lost inventory to a failed sale can mean a serious downturn, and it’s something you’re going to have to account for in your business plan.
There’s a lot of costs in business, and some can be more significant than others. Make sure you’re accounting for any that can apply to you, and always look after the areas in which cash flow could be involved.