When you start a business, there are loads of costs that you’ll be expecting. You’ll be prepared for the salaries of the employees you hire. The costs of renting or buying a workspace. The price of the technology you need to perform certain tasks. But there are bound to be costs that are likely to catch you unprepared.
The one thing you don’t want is a cost for which you are unprepared. Starting up a business requires you to have as accurate a budget and cost projection as you can before you dive in. Otherwise, you’ll find yourself financially ill-prepared. Of course, it probably isn’t possible for you to anticipate every cost that will come your way. But you should work toward getting the best head-start that you possibly can.
Here are a few of the costs that you may not have prepared for just yet.
The true (and scary) cost of recruitment
Wait a minute. Didn’t I already write earlier that you’re already expecting the costs of employee salaries? Ah, but employee salaries and recruitment costs are two different things, though the first can be included in the latter. The salary isn’t the only cost that surrounds gaining an employee. You also need to consider the costs of listing jobs on job websites and in magazines. The costs of working with job agencies. The costs of training. And if you’re replacing an employee with another one, you need to consider the loss incurred by the downtime between the two. All in all, it can cost you thousands!
This doesn’t apply to every business, of course. But the fact is that not every business that uses a uniform began by using a uniform! Many such companies would only later realise the benefits that employee uniforms would have for business. This, of course, won’t apply so much to office jobs. But if you’re working face-to-face with customers, then it’s likely you’ll need some type of uniform. You can always look into uniform rental if that works out better for your business.
You’re going to be spending a lot to set up this business. So you need a way to protect those investments. Unfortunately, this does kind of mean spending even more money! You need to consider a lot of different types of insurance. There’s the insurance of your work areas. Insurance relating to any particular elements you work with, such as fire or water. Insurance against theft. Insurance protecting equipment from damage costs. Business insurance needs to be included in your cost projections!
Speaking of protecting your investments, you’ll also want to look into security costs. You can’t run a business without protecting yourself physically from theft or other crimes! The cost here will, of course, depend on what security you feel you need for your job. If you’re running a store, you’ll probably need to hire a security guard. Most business buildings would benefit from CCTV. You may be tempted to cut security costs in order to make the startup much more affordable. But if your business is hit by a crime, then the costs may work out even higher!