Starting your own business could be one of your life’s dreams, and the chance to be your own boss is definitely worth it. You may have been waiting for a long time for the chance to tell your boss to stick his job where the sun doesn’t shine, but wait! Before you take the plunge into the unknown, how about shining a torch into the dark for yourself and have a look at what it is all going to cost. There are some hidden costs of starting a business that might not be obvious when you are brainstorming the idea at home, especially with the carrot of giving up your old job, dangling tantalisingly in your face. Here are some hidden costs of starting a business.
Licenses and Fees
Owning and registering a business will require you to have certain licenses and permits, depending on the business that you are starting. At the very least you will likely need to pay for registering the business name, registering the business for tax, registering your trademark and your domain name. Depending on what business you will be trading in you may need other licenses or permits. For more information contact your local state government authority to get an idea about what it will be for your business.
Professional Legal Fees
Depending on what your business is it might be prudent to hire a lawyer or solicitor for any legal paperwork that might need to be sorted out with your business. The advice that you receive from a professional in the beginning could save you money later down the track!
Education/Upskilling
Before you take the big plunge, leave your regular job and sign on the dotted line, it might be a good idea to get some information about the area that you will be going into business. Getting the relevant skills before you start will mean that you will know what to expect and have a better idea about where you are heading in the future. Attending a course or two will assist you with networking and getting to know like-minded people who can share information and help you with getting your business off the ground.
Industry Association Fees
As well as being connected with people through networking from business courses, you will want to connect with people from your industry through linking with a trade association in your industry. While it will cost you to join many of these associations, it is an investment for your future, and a valuable opportunity to expand your networks.
Administration Costs
Unless you are starting an online or home business and have a space there to meet with clients, you will need an office space or business premises to conduct your business in. This will prove to be quite a costly part of setting up the business, and will involve the addition of phones, internet, staff etc. There are serviced office spaces available through some businesses such as Corporate House, who provide everything for you, all under the one roof. This could be a good option if you don’t want to make any long term commitments to the business in the intitial start-up phase.
