Niggling business costs to watch out for

When you come to open up your own business and really dig your feet into the sand, there are many things you will think about. You’ll need to make schedules, hire staff and decide on products. And there are many other things to think about too. Here are some of those small costs which you might not immediately think about, but which can damage your business.

Postage

Postage and shipping is a cost which you might underestimate when starting a business. Shipping out products isn’t cheap, and you will need to do some serious research to find the best method for you. Use Parcel2Go to compare carriers and find one which suits your budget and needs, and this will take a weight off your mind right away.

Shrinkage

The worst thing in the world that you can experience as a business owner is your employees stealing from you. Shrinkage is known as the profits you lose out on due to products or equipment being stolen from you. To combat this behaviour and prevent this from happening, you need to install some security. Install cameras in every office and room of the building to ensure that your employees are deterred from stealing. If someone does steal, you can deal with the issue and make an example to warn others.

New employees

When a worker quits and moves on to another role, you will have to spend a lot of money on getting someone to replace them. You will first face the cost of less work being carried out due to their absence, and soon after that, you will also struggle with the cost of advertising a job role and holding interviews. Having to replace employees is something you don’t want to have to do and to prevent this make sure that your workers are happy and that they know they can come to you if they have issues and doubts. By working to keep your workers happy, they are likely to be more loyal.

Payroll

You might think that when you hire an employee, the only cost to you is the wage you pay them, however, this isn’t the case. A lot of the time you will be offering them benefits such as a health plan and dental, they will cost you tax, and you will also pay into their pension. Hiring an employee can cost white a lot, so make sure you are totally ready before you do it.

Legal stuff

With any business, there will be legal things to consider. You will need a business licence to allow you to work as a legitimate business, you will need insurance to protect you against lawsuits, and you will also want to have someone to look after any legal issues so that you can focus on running the business.

Repairs

Computers, doors, windows, pipes… all of these things can break and need repairing during your time running a business. Make sure that you have enough money to cope with any repairs and replacements you will need to make. Ensure that you think about maintenance staff to keep things working and healthy.

*This is a contributed post

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