![]() ![]() When you’re the boss, it’s easy to insist in getting involved in every aspect of your business – this is perfectly understandable, given it’s your baby. OK, you might not be draining cash from your business in the way that paying for a service might, but don’t forget that the hours you spend doing things that don’t earn you income represent lost revenue. Don’t forget the opportunity cost of your timeĪnd finally, there’s you. There are also fees that you might incur such as subscriptions to professional bodies. Doing your own accounts might be straightforward enough when you’re working as sole trader but form a limited company and you will need to negotiate your annual filings and payroll.Īn accountant could (literally) pay dividends here. But there might be some tasks you just can’t manage. Professional feesĪs a small business you get used to multi-tasking and doing most things yourself. There are some insurance covers which may be mandatory for your set-up, such as employer’s liability if you have employees. You might also need to consider insuring your business equipment and gadgets, or your own inability to work due to illness or injury. ![]() Policies such as public liability, which covers your business from the risk of being sued by a member of the public, and professional indemnity, which helps if a client makes a claim against you for negligence, may help to protect your venture. See the Intellectual Property Office (external link) for more detail. This process can cost up to £280 and there are renewal fees payable if you want to keep the patent current. Patentsĭo you need to protect that great idea? If you don’t want someone to copy what you’ve done, consider taking out a patent. We take look at the five of the hidden costs that you will need to factor into your business start-up cash flow calculations: Technology costsĮvery business needs a web presence and it will cost money not only to set up a professional-looking site but also to have it hosted.īacking up your data is critical and might well involve paying for an online back-up service or use of the cloud for example. But what about those less obvious costs that may get missed from your initial budget? So, what expenses can you expect to incur when setting up? Office costs, equipment, employees, travel – these are the obvious drains on your stretched purse. The financial pressures of running a business can be even more acute when you’re starting out: in the early days your income stream may only be a trickle but the cash still keeps pouring out.
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