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The Hidden Costs of Running Your Own Business in 2020

When you decide to kick start your future and start your own business, it can be one of the most exciting things that you do. Many people have a dream that they are hoping to turn into a reality, but it can be expensive and there are things that you just don’t think about. Ignoring the costs of starting your own business is a big mistake and the only way to avoid this is to carefully plan out what you are going to spend.

To help you with this, we are going to discuss some of the hidden costs of running your own business in 2020 below in this article. We’ll look at everything from the cost of hiring to the cost of having someone else run your social media channels.

Hiring

While many people think about the cost of paying staff, some do not stop to consider the cost of hiring in general. There are many things that you’ll need to pay for when it comes to hiring including paying to post a job ad on a site like Indeed or LinkedIn, hiring recruiters and the time that you spend interviewing.

Of course, you cannot get by without hiring staff, so you’ll need to account for this in your initial budget and business plan. Decide on whether you’ll do it yourself or hire a recruiter to do it for you. Either way, it will cost you money that you need to set aside.

Employee Benefits

While we’re on the topic of employees and hiring, you also need to think about the cost of the benefits that you will offer to any new employees. You won’t be able to simply offer a salary to your employees, you’ll also need to think about any health benefits, discounts, shares and holiday allowances that will be included in your package.

A good way to make sure that your benefits are tailored to your employees and that you are not overspending on things that they don’t need is to consider using an employee benefits platform. Take a look online for some great platforms that could help you make the right choice. Not only could you save money, but you could make sure that your team are happy with what you are offering.

Social Media Marketing

In 2020, many business owners are opting for social media marketing over the traditional kind in order to save money. There is a misconception that this is a free form of marketing and while this is true to a certain extent, there are some costs that come along with marketing your business in this way. Firstly, you’ll need to have the perfect content to make your business stand out and it might cost you to get this designed by a professional.

Many business owners are also opting to pay an external company to manage their social media channels as it can be quite a large task. This will be a hidden cost, along with any paid advertising that you decide to go with. Make sure to include this expense in your budget and do your research to find the most cost-effective option for you and your business. Remember that even doing it yourself will cost you your own valuable time.

Insurance

The final hidden cost that we are going to discuss involves the insurance that you are going to need to protect your business and yourself. There are many different kinds of insurance policies that you can choose to invest in with some being vital and others being simply for your own peace of mind. Each insurance company will offer a different level of cover and it is up to you to decide how much you’d like. Some may cost more than others, but they will typically offer a better range of cover to protect your business.

Some of the common types of insurance policies that you’ll need to pay for include public liability insurance and insurance on your premises. Make sure to do adequate research to find the right policy for you and don’t forget to allocate some money towards this from the start.

Final Verdict

It can be tempting to launch your business without spending time researching all of the costs and working out your budget. However, you need to make sure that you know a bit more about some of the hidden costs and that you are ready to address them when they are uncovered.

Think about everything from the cost of the various insurance policies that you’ll need to the cost of the benefits that you want to offer your staff. If you can set your budget and afford all of these things, you’ll be ready to launch your business.