It’s honestly rather easy to mess up when you’re financing your startup. To begin with, most businesses tend to underestimate how much funding they need. If anything, you should be trying to get together more than your business plan dictates you need. For one, you need to deal with unexpected costs. Especially when those unexpected costs should have been anticipated in the first place. Those costs you should have been expecting are exactly what we’re going to cover now.
Most businesses these days make use of IT and the internet. However, have you considered the hardware that you’re going to need? Those costs can add up, so be sure to run through a checklist of everything you need. Are you going to need to change service provider for continuity’s sake? Are your scanner and printer up to snuff? Buying computers online is easier than ever, now, too. It’s worth considering upgrading if an unreliable machine is just going to cost you working time every single day. Buy your hardware while you still have the cash for it.
The ability to take payments
If you’re starting a retail business, then there’s one cost in particular that you should be thinking about. We’re talking about the cost of accessibility. A lot of customers nowadays use credit cards. Yet many retailers go into business without realising that they have to pay extra for these. If you’re starting a business, make sure you know whether or not you’re going to have to set-up a merchant account for your business.
When you’re getting so many of the practicalities such as stock and equipment out of the way, it’s easy to forget how important protection. Some insurance, like workers’ compensation, is a necessity for any business. Employers’ liability insurance is a purchase required by law even if you take on a part-time volunteer. Others like contents insurance and insurance for your premises are well worth considering, too. You never know when a disaster might strike and put you out of pocket for it. Carefully consider how much you’re able to put aside to make sure you’re not left destitute by disaster.
We’ve heard it before. You might be thinking ‘I’m not going to pay myself a salary’, at first. But you’re going to need to give yourself some money at some point. It will save you a lot of hassle to calculate how you’re going to pay yourself in the beginning. And it will make your personal conditions much more amenable. You don’t need to put personal financial strain on top of all the other pressures that come hand-in-hand with running a business. At the same time, remember not to pay yourself too much. Expenses aren’t the only thing that come out of the intake. You need to consider taxes and national insurance obligations as well.
Don’t consider your financial planning a done thing just yet. Make sure you’ve considered everything we’ve mentioned above. Neglecting the technicalities of the business will cost you more in the long run if you don’t take care of them to begin with.