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5 Overlooked Small Business Costs
(this is a contributed post)
It does not matter what sort of company you run, you need to get your finances in order. This is where a lot of businesses go wrong today. They do not track what money they have coming in and out, and so this leads to incorrect estimations. This then causes businesses to run out of money without realising it. Not only do cash flow problems like this presents problems in terms of not being able to fund bills but it can also mean that great opportunities are missed too. So, with that in mind, let’s take a look at five of the most overlooked small business costs.
Maintenance – There is only one place to begin, and this is with the cost of maintaining your business premises. You have probably already factored in the cost of cleaning, as well as the money that is needed for lighting, flooring and other elements once you move in. However, do not forget that these things are going to continue to cost you money in terms of maintenance.
Insurance – Another cost that people tend to overlook is insurance. There are some insurance policies that are required by law, for example, public liability insurance. There are also some policies, like insurance for your tools, that may prove more cost efficient for your business in the long run. Either way, do not forget to include these costs in your budget.
Time – You have, no doubt, head the saying that time is money, and this is definitely true in the business world. The more time you spend doing something, the more it is going to cost your business. The trouble is that time is hard to quantify in real money terms. This causes people to simply overlook it. Instead, you need to focus on improving the efficiency of your business so that you can achieve more.
Repairs – There is no denying that technology has become an integral part of business operations across all industries. However, while technology has advanced dramatically, it does break down from time-to-time. This is why you need to factor repairs into your expenses.
Processing fees – From card payments to mobile payments, customers have a wide selection of payment methods to select from today. However, no matter what options you present your customers with, there are going to be processing fees to take into consideration, so make sure you factor these in.
Hopefully, you now have a better understanding regarding the five most commonly overlooked expenses by small business owners. When budgeting and handling the finances at your company, it is vital that you include every cost in your plan, no matter how big or small.
