As a business owner, one of the most important things you need to do is get a grip on your finances. Budgeting effectively and managing cash flow are both imperative tools for success. However, one of the biggest mistakes that company owners make is failing to take into account all of the costs they are going to be subject to. To ensure this does not happen to you, read on to discover some of the most common unexpected expenses you are going to need to account for…
Equipment maintenance and repairs – Most business owners recognize that they are going to need equipment to run their business effectively. After all, most companies rely on the likes of computers today. No matter how effectively you research the equipment you purchase, there is no denying that it won’t last forever. You are going to be faced with repairs and replacements along the way, and these are expenses that you are going to need to account for.
Unexpected opportunities – Not all business expenses arise from a bad situation. In fact, a lot of costs can come about when your business is presented with an opportunity it was not expecting. This could be a lucrative new client, for example. Of course, costs like this are going to make you more money in the long run. However, they will require an upfront investment, and you are going to need to have money available to take advantage of them. This is why it is so important to manage your company’s cash flow effectively. You can find some great tips on doing so at https://www.entrepreneur.com/article/306531. This includes suggestions such as raising your prices, tapping your line of credit, practicing better invoicing, and working on retainer only.
Cyber security – Nowadays, all businesses need to be prepared for the threat of a data breach. It does not matter how big or small your company is, you are a target. Big businesses are obviously targeted because they are more lucrative. Nonetheless, hackers see small companies as an easy payday, so no one is immune from the threat of a data breach. Therefore, you will need to attribute a portion of your budget to cyber security so that you can protect the future of your company while also meeting your compliance requirements. Failure to do this could cost your business astronomical amounts of money in the future, and this could be incredibly difficult to come back from.
Furniture and office supplies – You probably recognize that you need furniture and office supplies. However, a lot of business owners overlook just how much they need to spend on these items. This is because they only consider the obvious, i.e. chairs, desks, paper, stationary, computers, and so on. They don’t consider the likes of toilet partitions, such as those you can find at https://www.partitionsandstalls.com/toilet-partitions.html, as well as cleaning supplies, kitchen items, and so on. The best thing you can do is put together a comprehensive list of each and every thing you are going to need for your premises, no matter how insignificant it may seem.
Utility issues – You may also experience unexpected expenses when you have an issue with your utilities. This could be anything from a blocked toilet to electrical issues. If this happens at an inconvenient time, for example, in the evening or on a weekend, you could face excess charges from the repair firm. Nonetheless, every minute you spend being unavailable, is money wasted, so acting quickly is important.
Business growth – Business growth is another expense that a lot of business owners forget to take into consideration. Most companies are aiming to grow and get bigger, and you are going to need money to do this. You will need to invest in new training and office supplies and equipment. You will need to hire new staff too.
Health and safety – Last but not least, you will need to spend a considerable sum of money when it comes to ensuring your workplace is a safe and healthy one, and that it adheres to all of the regulations that are in place. If you fail to do this, you’re looking at huge fines, compensation to fund, and negative press to deal with.
As you can see, there are a lot of unexpected business costs, which a lot of company owners tend to overlook. It is important to consider all of the potential costs you could be subject to when you are determining your budget and managing your finances.
Shutterstock / By TaLaNoVa