Collaborative post – may contain affiliate links
When running a small business, there is a lot that needs to be taken into account. Of course, one of the most important aspects is the financial side of things. If you don’t manage your finances well, this could quite easily spell the end of your company. Unfortunately, this happens more often than you’d think, and one of the reasons for this is because business owners underestimate the costs they face. So, with that being said, let’s take a look at some of the hidden costs associated with running a small company.
- Credit card fees – It is wise to give your customers the option of paying by credit card. After all, the more payment options that are available to a customer, the more likely they are going to be to place an order with you. Nevertheless, you do need to account for the fact that there are going to be fees in place if someone does make a credit card payment. In most cases, this will be around three percent of total charges.
- Cleaning and janitorial services – A lot of business owners forget about the fact that they are going to have to upkeep their business premises. After all, no one wants to be working in a mountain of dust. Plus, the way your company looks says a lot about your brand image. This is why you need to factor in janitorial services when working out your budget. Shop around for the best price and see if you can secure a good discount by paying a company on a yearly basis and taking on a long-term contract.
- Time – You know what they say, time is money, and that is most certainly the case. Time is one of your business’ most valuable resources, so you need to make sure you are using it effectively. If you are spending too much energy and time on tasks that could be delegated to another employee, then you could be costing your business money.
- Payment delays – Payment delays can significantly hurt your bottom line. It is as simple as that. When someone does not pay your business on time, it slows down your business, meaning you are unable to take on new orders or work as efficiently. The problem becomes even worse when you were waiting on the said payment in order to cover costs. After all, this can lead to interest charges, as well as fees for using your overdraft or bounced payments.
- Insurance – This is another cost that a lot of business owners simply forget to include in their financial plan. Your business is going to need public liability and employer liability at a very minimum. You then may also need insurance for injuries and illnesses, property, and negligence. Don’t make the mistake of simply going for the cheapest policy you can find. You need to have the right level of protection. After all, you are going to cost your business much, much more money in the end if you choose an insurance plan that does not cover you effectively.