In business, it is smart to plan for as many eventualities as you can so you do not find yourself in a troubling situation with your cash flow, but there are a number of expenses that can creep up on you, and which you do not always think about when you are starting out in business.
Below are some of the unexpected business costs that come up from time to time, that you may not have thought much about, but that you should try to plan for just in case.
1. Energy costs
Energy costs are a tricky thing for businesses to plan for. As we are seeing right now, the price of energy can soar with very little notice, so it is always a good idea to ensure you have a little extra in the budget to cover your energy needs and keep the lights on when things change in this department.
2. Equipment breakdowns
Equipment is not infallible and it will break down from time to time, so if you forget to account for buying new leaf blower parts for your landscaping business from time to time or to account for downtime when your factory machinery needs to be repaired, you could end up with worse cash flow problems than you would have with proper planning.
3. Location issues
The location you choose to run your business from now might be affordable, but you also need to factor in things like rent rises, and the possibility that your business will expand quickly and you might need to move to a new location the cost of doing this could be much more expensive than you might imagine with moving costs and increased rents factored in, so although it might be early days for your business right now, it is worth bearing location issues in mind right from the off.
4. Professional services
In the course of doing business, you will likely need to employ various professional services from accountants, IT support teams, graphic designers, and so on, from time to time, A failure to factor in these costs could leave you in the lurch unable to handle various tasks that need to be completed on a semi-regular or ad-hic basis, so it is imperative that you include them in your financial projections.
5. Employee costs
As you hire more and more employees, you will need to pay more in terms of not only salaries but taxes, bonuses, benefits, training fees, and things of that nature. It is important, then that you have a plan for paying for all of these extra expenses as your business expands. A failure to plan for this could mean you cannot afford to hire the level of labor you need to run your business and ensure that your company is able to grow.
Planning for every eventuality will stand your business in good stead ad mean you can roll with the punches much more easily, so be sure to factor the above into your business plans.
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