It does not matter what sort of business you run, whether it is a law firm or a logistics company, one thing you need to get right is your finances. Businesses spend a lot of time budgeting and forecasting. However, this can all fall apart if the correct figures are not utilised to begin with. With that being said, read on to discover more about some of the most common costs that business owners overlook.
- Training Courses – A lot of business owners overlook the cost of training, from courses for nursing home neglect lawyers to accounting courses. They may incorporate initial training for new employees into their costs but they forget about the ongoing expense. There are also going to be new things to learn, especially with tech advancing at a rapid pace. The good news is that training should result in ROI.
- Insurance – If you do not have the right insurance in place at your business, you could find yourself in huge trouble in terms of fines. The insurance you need will depend on the industry you operate in and where you are based, so make sure you research this thoroughly and that you keep up to date with the latest legislation.
- Shipping – If you sell products, you will need to ship things regularly. Even service businesses often need to ship booklets and such like. Use a company like DPD Local to figure out your costs.
- Repairs and Maintenance – When it comes to equipment, be it computers or machinery, you will have, no doubt, accounted for the fact that you need to purchase it to begin with. But what about the ongoing maintenance and repair costs? It is almost impossible to quantify this expense but you should keep some money aside for it. After all, equipment does not last forever, no matter how good it is.
- Entertaining/Hospitality – For most business owners, there is going to come a time whereby they need to wine and dine their clients or potential clients. You want to put on a good impression and make sure that these people feel special so that you can secure business. Make sure you account for this in your expenses.
- Marketing – Last but not least, you may recognise that you need to spend money on marketing but have you planned for this effectively? There are so many different marketing channels available today, including a plethora of both online and offline methods. You need to plan your marketing budget successfully, otherwise, it can easily get out of control.
As you can see, there are a number of different costs that a lot of business owners forget to incorporate into their plans when they are budgeting. To ensure that you plan everything accurately and you do not run out of cash, include all expenses into your plans.