When you first set up your own business, your primary concern will be clawing together the capital to buy the equipment, rent your office space and get your company off the ground. The problem is, in all that excitement and adrenalin, there are often initial start-up costs that go overlooked by most entrepreneurs. In today’s post, we’ll give you a handful of these costs and what they mean for your business if the proper funds aren’t allocated…
- Who are your service providers?
Many business owners will factor in their suppliers, manufacturers and employees into the figures, but what about those in-between stages? For example, who will deliver your pallets of products from warehouse to customer or to various storage facilities? Across the UK and Ireland, it’s companies such as Pallet Anywhere who will become your best friend for affordable deliveries. If it’s smaller packages to the customer, have you allocated enough money for a private, professional courier rather than relying on Royal Mail? It’s essential you work out who these middle men are, and budget accordingly.
- Will you need equipment upgrades?
I’m sure you’ve already considered in detail the types of equipment you’ll need for your start-up, and you’ve most likely got everything set up and ready to go. However, have you thought about what happens when things fail? If the equipment breaks, do you have money for repairs? If you begin to use certain programmes and find them to be inadequate for the job, do you have money to invest in better software or regular subscriptions? This kind of contingency plan is essential, particularly with online-focused businesses.
- Are you insured?
Surprisingly, this is one of the top things left off the list of many entrepreneurs. When renting a space, many presume they are covered under landlord’s insurance for any theft and so on, but this isn’t the case, as possessions of third parties will be excluded in many cases. Start with your premises and investigate what types of insurance are open to you; you’ll need liability and property insurance, but what about insurance for any business vehicles, workers’ compensation and so on?
- Have you considered marketing?
These days, a lot of marketing in the early stages of a business can be done for free. You can set up your own blog to talk about your industry and establish yourself in the online space as an expert. You can set up social media profiles and build an audience, engaging with colleagues and customers alike. However, as with most things, you get what you pay for, and when it comes to marketing you’ll still need to put your money where your mouth is. Investing even a small budget in targeted Facebook advertising, PPC and other such methods will help to turn your no-name brand into a well-known brand.
Did you find these tips on hidden start-up costs useful? Do let me know your thoughts by leaving a comment in the section below
This post is in association with Pallets Anywhere