As a business owner, being on top of your finances is one of the most important things you must do. You need to be able to budget effectively and manage your cash flow well if you want to succeed and still be in business five years down the line. Sadly, a lot of startup owners fail on this score and quite often they fail because they have not taken into account all of those unexpected business expenses that actually aren’t all that unexpected because they tend to crop up time and time again in businesses of all shapes and sizes.
So, let’s take a look at some of those businesses expenses you might not immediately think of, but which you must take into account so that you don’t make the same mistakes as many who have gone before you…
Repairs and Maintenance
You might have budgeted for those brand new Apple Macs and your own busienss server, but have you budgeted for their ongoing maintenance and any repairs that you will inevitably need to do eventually? If not, then you could find yourself in a tight spot, financially speaking, a few months/years down the line. It doesn’t matter how good the quality or how well you take care of your equipment, it will break down or experience issues and they will need to be dealt with swiftly. When that happens, you’ll be glad that you budgeted for them.
Some of those unexpected expenses that your business is likely to face are not bad, they could come in the form of opportunities to grow and build your brand. For example, you may have the chance to meet with a potentially lucrative new client and that might require wining and dining them now to make more money in the future. Or you may be offered a contract that requires you to take on an extra member of staff to deal with an area that you aren’t already versed in. You could take out a line of credit from a company like businesslineof.credit to cover the costs and keep the cash flowing and the profits coming in, but how many times can you do that? Ideally, you should plan for these eventualities and then only take out extra lines of credit or resort to using your credit card when you’ve exceeded your expectations and you simply must in order to maintain your cash flow whilst taking advantage of the opportunities in front of you.
You should plan to spend a decent amount on internet security from the off, so that it is less likely that your business will be hacked, but if you’re smart, you should also prepare that eventuality because, as we have seen regularly in the news – take a look at – in the past couple of years, not even big corporations with huge operations are completely safe from hackers and should they strike your company, you will need to act quickly to cut them off and do damage limitation. Set some money aside just in case.
The more eventualities you plan ahead for, the safer your business will be. So, start with these three expenses, but don’t stop there – keep planning until every possible base is covered and it will see you well.