Hidden Costs That Tend To Dethrone Entrepreneurs

Sitting on the throne and overlooking all that is yours, while the crown balances perfectly on your head, is something you may well have dreamed of. Rightly so. It would seem like the most dreamy of gigs. However, if you have seen Game Of Thrones (and you really should have by now!) then you will know that the Iron Throne isn’t all it’s cracked up to be. In fact, it is about as far from rainbows and roses as one could possibly get, and running a business can be a lot like that too, sometimes.

There is just a lot to consider and contemplate and make decisions on, and one of them is costs, and knowing what the hidden costs of running a business are. Underestimate this and you could find yourself toppled from the throne, and another house takes control of King’s Landing, sorry, we mean the market.

As such, it is impossible crucial to know exactly what financial pitfalls are out there and understand exactly what it takes to be successful in navigating them. That’s where we come in because we have come up with a list of hidden costs that all entrepreneurs should be aware of when taking to the crown.

It All Starts With Bits Of Paper

When you are launching a business, there tends to be a lot of permits and licenses that you need to obtain, with certain criteria that you need to meet. These cost money. Of course, they do, everything costs money these days. But the hidden cost is in the renewals because it is very that these permits and licenses will require just a one-off payment. As such, we recommend you ask exactly how often these may require renewing and what the exact renewal costs are. That way you can accurately factor them in and set aside a little money to cover them, instead of being caught off guard.

Office Space, The Cost That Just Keeps Taking

It is well worth sitting down with whoever and really thrashing out whether you need an office space or not. It may be that you do, because of zoning or staff or professionalism, in which case fine. Just consider the costs. Like really consider them. Thoroughly. Think about how much space you really need, and consider whether that allows for growth. If this is too tricky to get your head around because it will be a guess, then look at leasing some temporary office space. As http://www.companybug.com/ explains in no uncertain terms, there are other hidden costs to consider too, such as utility bills, which suck, and tend to eat away and finances quicker than a termite clan finding an old house. So consider this when looking at a space, and look at ways of reducing these annoying outgoings.

Equipment Needs Maintaining

All too often, entrepreneurs know which big tools and equipment they need to do a job, and they have worked out exactly how much said tools and equipment will cost to buy. What they haven’t factored in, though, is a) the little bits of equipment that often fly under the radar and b) the costs of maintaining tools and equipment. Let’s say you have bought your company some amazing computers, and you even managed to get a good deal on them, but eight months down the line they start to play up, which is when you realize that manufacturer has gone bust. That’s when you’ll have to factor in more costs, even if it is the cost of a cost-effective components supplier like https://www.icrfq.com/. As such, make sure you do your research, look at life expectancies of certain products and do your Due Diligence on a company before spending a ton of cash on them. The less risk you take on this front, the easier it will be to keep maintenance and repair costs down, which will mean a much smaller bite on your backside.

Employees Don’t Expect Salaries

Nope. They expect way more than just that, and quite rightly too. They will want benefits and perks to make the job they are doing you worthwhile. This means you need to factor in health insurance, personal leave, medical leave, maternity and paternity pay, training costs and, let’s be honest, company celebrations. They all add up, but failing to invest properly in your employees is what will lead to an immensely high employee turnover. This is not good. Just ask BYG Systems about that. They operate with an extremely high employee turnover because the managing director doesn’t see the benefit of looking after his employees. The true cost of replacing a member of staff; about 20% of a worker’s salary. That is a lot.