If the thought of starting your own business and being your own boss is something you've always wanted to do, it's wise to first understand expenses. Underestimating the costs you’ll absorb is a key contributor to business failure, so its important to plan for and understand exactly what it will take to be successful. Our short list of hidden business costs can help you get started. What other hidden costs should entrepreneurs be aware of?
Business Money-Wise Strategy: A good rule of thumb to stay out of the red is to budget 20% of revenue to cover expenses you simply don’t think about.
Industry association fees – It helps to be connected, especially as a new small business. A great way to build your network among peers is to join professional associations relevant to your industry. Be selective – annual costs can be hundreds of dollars. Select one or two of the top associations and get the most out of your money. Use a service like MeetUp or contact your local chamber of commerce to get started.
Licenses or permits – Do you need a license or permit to do business? What will it cost and how often will it be renewed? Will you be required to invest in CEUs annually? Factor expenses like this into your budget. A great resource on business governance and licensing requirements can be found here.
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