One of the best things you can do in life is start a business. Having your own business brings freedom, flexibility and an uncapped salary potential – which, if you work hard and are successful, is arguably the biggest benefit. When you are your own boss, you don’t have to answer to other people, you don’t have to ask to book a holiday off (it’s the small wins), and you become an industry expert.
When starting up your own business, there are so many things to think about, especially when it comes to budgeting for things. You’ll have your monthly subscriptions, your costs for employing staff, and your building costs (if you plan to build your commercial building). Along with these, you may have financial costs, such as your accountants and your insurance costs, which, sadly, you can’t avoid.
To help get you started with your budgeting for your new business, we have put together a guide on a few things to consider when starting up. Keep on reading to learn more and put yourself in the best position for success.
Looking after your finances
A good place to start is all the costs associated with looking after your finances. When you run a business, you’ll need to keep a close eye on your money to ensure it’s being spent in the right way (especially if you have employees spending it). You should have an accounts package which you will use to keep track of all your invoices, expenses and paying your staff. You will also have an accountant who will help you with your end-of-year taxes, as well as other financial subscriptions which may be beneficial.
Employee costs
Are you going to need to employ anyone for your business when starting up? Employees, as you can imagine, cost and are the most expensive cost to a business, in a lot of instances. You don’t want to employ too many people so that they don’t have enough to do, but you also don’t want to engage too few, which puts a lot of pressure on you and the team to succeed. Consider the contracts you offer and whether you can use freelancers at the start, as this can be an easier way to manage your finances.
Day-to-day subscriptions
There are going to be plenty of subscriptions that you are going to need on a daily basis. These subscriptions will vary for different teams or sectors of your business. You may have media subscriptions for your marketing team (such as email subscriptions, graphic subscriptions & website subscriptions), or you may have accounting subscriptions such as Xero, amongst many other things. Try to keep on top of these, as they can quickly add up, and make sure you cancel any that you stop using.
Building costs
There will no doubt be building costs that you need to factor into your budgeting. You’ll need to factor in any monthly rental payments, which you are going to have to make, as well as any maintenance that you need to cover. You may need to completely refit a space to suit your needs, or if you have the money, you could look to have a new commercial building built for you. If you know any friends or family members who run a business in a dedicated building, it may be worth asking them to share their monthly costs; this way, you can get a realistic number.
Insurance products
Insurance can sometimes feel overwhelming, especially when you start to get deep into it and realise there are so many to choose from. Unfortunately, it is a must, and you should have the right protection taken out to cover you in case of something happening (we hope it never does). Different types of business insurance cover you for different risks, but understanding what each policy offers makes it much easier to choose the right level of protection. Ones to consider include: public liability insurance, gadget insurance, employers’ liability insurance, professional indemnity insurance, business interruption cover, and contents or equipment insurance. If you cover events, public liability is especially important.
When getting an insurance quote, the best thing to do is run it through a comparison site. Just like when you get a car insurance quote, these sites will run your quote through multiple providers, finding you the best price. You can then get in touch with the top two to ask any questions you have and take out the insurance.
Branding and marketing setup
Finally, you can’t have a business without having any branding or marketing materials put together. This can be a high cost, but it’s well worth getting the right person to do this for you. Your branding will include things like your logo, the fonts you are going to use, and the colours. The marketing materials could include brochures, flyers, PowerPoints, business cards, and more. With these, you will base your website from as well as your social media channels and content you publish. It’s important to get your branding right, as when it’s done well, your customers are more likely to remember you, which will then mean they hopefully return when they need your services again.
Suppose you are getting a professional to help. There are two routes that a lot of people go down. You can reach out to an agency, or you can reach out to a freelancer. Agencies tend to be more expensive than freelancers, but both can do a great job if you find the right person. Just make sure you read their online reviews first.
We hope you are successful at launching your new business, and over the years, you continue to grow. What type of business are you planning on starting, and when do you think you will go live? What costs are you budgeting for at the moment that you think are important? Is there anything missing in our guide that you think we should be talking about? Let us know in the comment box below. We look forward to hearing from you.
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