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.
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. If you are hiring candidates by yourself, it could be a big challenge to find an apt candidate for your company. Along with the skills, you may have to execute background checks for health, integrity, political connection (like a pep screening), and social media in order to protect your business from any future legal complications.
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.
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.
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.