As the economy suffers and jobs become scarce, many individuals decide that starting their own business is the best option for them. However, starting a small business has many initial expenses as well as long term expenses that can wreck havoc on an unsuspecting entrepreneur’s budget. For instance, there are many start up costs that include registering a new business name, which many new business owners neglect when they initially imagine owning a business. Of course, there are also many obvious expenses such as ordering business cards, signs, phone lines and an actual office space. All of these expenses can vary widely in cost depending on the size and type of business. Insurance is also necessary for many businesses especially if the business is involved in an industry that could potentially cause harm to clients. For example, a business in healthcare should consider malpractice insurance and a business in the food industry should consider insurance that covers a patron’s accidental slip and fall.
The cost of owning a business can substantially increase if a new business owner wants to expand its clientele. Advertising can quickly become one of the most costly components of owning a business. Advertising agencies sometimes need to be hired and advertisements in sought after places can come with serious price tags. Additionally, small businesses sometimes wish to incorporate a website or 1800 phone number into their business methodology in order to attract potential new clients. Obviously, expanding a business on the internet comes with its own expenses and can be a significant cost for a new business to bear. It is important to set a budget when first starting a business in order to make sure that foreseeable expenses will not far exceed the expected profits. Nevertheless, a decent start up fund and cost saving strategies can often make the most extravagant business expenses feasible for new business owners.