The reason running a business is not easy is because it is so expensive. Once you pay one expense, another pops up that needs tackling. At times, it feels like you do is try to make money to stay afloat. Well, there is more bad news because there are even more costs than you might realise. The obvious expenditures might seem like a lot of hard work, but they can be insignificant compared to a few of the unknown fees below.
Licences & Permits
Almost every business needs a licence to trade. Not a lot of people know that and think they can start trading at a whim. You need to register with your local and national authorities to make sure you are eligible to business taxes and a whole host of other fees. Plus, you then become a validated company within the community. However, licences and permits do not come cheap and they can easily hit the hundreds to thousands of dollars mark.
Credit Card Fees
Can customers use their credit cards remotely to buy your products? Of course, they can because it is a must for every business. It ensures your business is open twenty-four hours a day, seven days a week to maximise profit. But, there is a downside because the card company will charge you for the service. In general, it is about three percent of the total charges in credit card fees, which soon add up.
Now, office space doesn’t seem like a hidden fee. In fact, you know from the beginning you are going to have to pay the rent. But, there are even more fees included other than monthly rent payments. Don’t forget that basic overheads like gas and electric apply to a business just as much as any other property. Although it might seem unlikely, overheads are what cripple businesses more than most. It is incredibly difficult to get hundreds of people to turn off lights and computers, which makes them hard to cut down.
Again, salaries are not something that will catch you out of the blue. But, employees have a lot of additional fees that come with them and you are the one that pays. Sick leave, vacations, health insurance and many more all add up and cost businesses tens of thousands of dollars every year. If you cannot cover these costs, you cannot hire employees. It is that simple.
Health & Safety
A lot of businesses have medical office accounting services because health and safety are such a big deal. There are so many factors to consider that a professional is one of the only measures to cover the costs as cost efficiently as possible. Plus, because it is the law, you have to deal with health and safety and you cannot cut corners. Apart from the relevant equipment and occasional lawsuit, there is the training. The costs add up, but you cannot get bypass them.
The moral of the story is to do all your research before you go into business. The above are only a couple of hidden expenses. There are many more.