The Hidden Costs of Starting a Business
It’s no surprise that starting your own business takes time, hard work and money and although it can be extremely rewarding and successful, there are often hidden costs that many new entrepreneurs are unaware of. These hidden costs can add up and affect your investment and revenue over time but don’t worry as we are here to help and discuss some hidden costs to save you from any unwanted surprises.
Some hidden costs you need to be aware of:
It depends on the type of business you’re starting as to what insurance you will need. You will need some of the following: Public Liability, Professional Indemnity, Employers’ liability, Business Insurance, Management Liability Insurance, Cyber Liability Insurance & Tax Audit Insurance.
2. Software subscription costs.
These can quickly add up so it’s good to think which ones are essential for now, which ones are nice to have and identify the ones you’ll need when the business grows. We would consider, email hosting, domain hosting, cloud-based accounting software, graphic design, Microsoft Office, time tracking, storage, security and social media scheduling amongst others.
3. Founder Agreements
Even when going into a business with a close friend or a partner, you will always need to expect some disagreements. To protect both parties interests and salvage your relationship, it’s best to hire a lawyer to draft a founder agreement to set role expectations, equity ownership and specific terms that will help in the worse-case scenarios. This agreement is definitely worth it to save you from drama and potential surprises, after all, they do say you never really know a person until you’re in business with them.
4. Business Support
Running your own business can feel like you are constantly learning on the job but to develop your skills and reputation in the industry, you'll need to invest in education. In some cases, it may be just attending online webinars and classes but for other industries, you may need to go to trade shows or conferences. These fees can add up, especially if you’re paying for multiple employees to attend at a time.
Running a start-up can be expensive but we hope we’ve given you some idea of costs that you may not think of. Although these costs may sound scary, your business can be extremely successful by using the right tools and guidance. We’re also here to help if you need any guidance, at Enterprise Orchard we are constantly advising and supporting start-ups and small businesses.
If you are trying to grow your business and need advice, join our peer learning
programme. The Engine Room is a community where you can talk to like-minded business owners to discuss concerns, achievements, and everyday business antics. It provides expert guidance through weekly Zoom sessions in small close-knit groups of 6. The sessions include expert-led masterclasses are delivered every 3 weeks by our partners. This is your chance to be part of an engaged community of founders, delivering business growth and collaboration. To find out more please visit: