Starting a business is exciting, but it’s also very important to be accurate and informed when it comes to new business start-up costs, otherwise you may fall at the first hurdle. At first, you may find that your business costs are mainly related to buying stock and/or setting up a website, but this is just the tip of the iceberg. As your company grows, it becomes more costly to run, and those costs will all need to be factored into a comprehensive, well-researched business plan. So what do you need to know about business start-up costs?
Fees and Insurance for Startups
You may need to engage the services of accountants, solicitors or other professionals in order to get the ball rolling. Areas such as company formation, copyright protection and partnership agreements require the services of a legal expert, while an accountant is an important ongoing professional cost for most businesses. You need to spend time researching to find the best of these within your budget, and their costs need to be factored into your business plan, especially if you are considering obtaining a loan or investment to spur your business’s growth.
In addition to professional fees, every business needs to consider insurance. Some types of business insurance you may have to take out include:
- Car or van insurance
- Buildings and contents insurance
- Public liability insurance
- Professional indemnity insurance
- Equipment breakdown insurance
- Employers’ liability insurance
- Personal accident insurance
- Product liability insurance
- Self-employed or sole trader insurance
- Commercial building insurance
- Business income insurance
- Cyber and data insurance
- Accounts receivable insurance
It is unlikely that you will need all of these for your business, but at least one or two of them should be factored into your new business costs in order to protect yourself should the worst happen.
Cost of Renting Office Space
You may start your new business from the comfort of your own home, but at some point you will need to rent an office space for your burgeoning team. Renting office space can be a minefield, with so many commercial units to let on the market. It pays to know where you stand to get the best deal for your needs.
Coworking spaces have become very popular in recent years, and it can be tempting to follow the trend. But first you need to decide whether conducting business in a shared workspace is really the best route to go down. In most cases, a private office of your own, where everything is set up your way and you don’t need to carry equipment and computers back and forth each day is a much better option.
Also consider what is included in the fee for renting your office space. Some places simply offer the unit itself and leave everything else up to you, and others throw all kinds of unnecessary ‘benefits’ your way that add up to very little real value to your business. But then, there’s Needspace?, where our flexible office space is designed to offer maximum value without bamboozling you with features you simply won’t use.
At Needspace? Horsham, your building insurance, utility bills, communal area cleaning, maintenance, security and service charges are all included in one, easy and affordable monthly invoice, starting at just £185 + VAT a month. What’s more, our flexible office space to let in Horsham requires only a three month contract, after which you only need to give a month’s notice if you decide to move on.
Cost of Employing Staff
Your staff are your company’s biggest asset, but the job of obtaining and retaining them can be costly. Hiring through a recruiter comes with some pretty high fees, and even advertising yourself through an online jobs portal isn’t free of charge.
What’s more, hiring someone who turns out not to be the right fit wastes both time and money (don’t forget, they’ll still need to be paid!). Then, once you have staff in place, they’re going to need to be paid a decent salary if you expect them to stay. Oh, and don’t forget the pension contributions.
Minimising Business Start-Up Costs: Build Networks
There are lots of free resources out there offering advice and help with start-up costs for new businesses, particularly in the Horsham area, where there is a thriving community of business owners. The town is very encouraging in the ways it helps new businesses get their break, including easy and affordable ways to rent office space in Horsham.
Get as much advice as possible, and start building up a good network of business connections across your local area. You never know when you’re going to need them. Business owners with good networks are more likely to benefit from discounts and know where to go for the resources they need at the right price.
Remember that no man is an island, and becoming part of a community of business owners in your area is the key to unlocking success for your business. This is one of the benefits of renting office space at Needspace? Horsham, where neighbouring businesses within the City Business Centre building know one another, creating those valuable connections that make such a difference in so many ways.