![]() To stay on top of your loan payments, make sure to include these expenses in the overall monthly cost. Falling behind on your loans not only hurts your credit score, but it also makes it harder for your business to pay back what it owes. Staying current on your loans is good for your credit score and helps keep your payments manageable. But there’s more to pay each month than just the loan balance- you need to stay on top of the interest you’ve accrued on your loan also. Typically, you’d pay part of your loan balance each month over the course of years. Of course, loans aren’t free money and they need to be repaid. Most businesses require loans to get started. Always be aware of the expiration dates of each permit and license- that way you can renew them on time and keep things running smoothly. To keep these costs from catching you off-guard, make sure you are figuring any and all licensing costs and renewal fees into your finances. Permits are not a “one and done” kind of deal either- in order to stay in business, you need to renew your permits and keep them up to date, which costs money. Other businesses will require additional permits- such as a seller’s permit if you sell products in-store or online, food handlers permits or a liquor license for any place that sells food and alcohol, as well as health permits, zoning permits, et cetera. You’ll always need at least a general business license to get started. Permits and LicensesĪll small businesses require the proper permits and licenses to set up shop in their community. This means that you could potentially allocate those funds to other parts of the company, like employee benefits or putting more money towards any unexpected costs. Businesses would also spend significantly less on energy and utility costs, as well as professional services. This is because there are financial benefits to a WFH business model.Ī smaller office- or working entirely from home- would reduce or even eliminate monthly rent payments and lease agreements. Two out of every three small businesses either plans on having a smaller office or none at all. If your business would still operate fine even beyond the office space, it may be worth your while to consider a fully remote business model.Ī survey from HiveDesk asked small business owners about the impact working from home during the pandemic had on their businesses. ![]() In a post-pandemic world, many businesses large and small are shifting more towards a work-from-home (WFH) model. Does Your Small Business Still Need Office Space? Or maybe, you may be able to forgo the office space altogether. But if your office space- and its bills- are bigger than you need, it may be a good idea to downsize to a more efficient space. If your office is too small for your business needs, it seems reasonable to expand to a larger space. How much will it cost to keep the lights on?Īnd don’t forget about the cost of professional services like landscapers or repairmen. How many employees do you need to accommodate? There’s a lot to consider about your location.ĭo you need a large warehouse to store and process your inventory, or do you just need a small suite in an office building?ĭo you want to sign onto a short lease and plan for expansion, or do you plan to stay in the same location for years to come? ![]() However, there can be a lot of hidden costs involved if your office space isn’t ideal or well-suited to your business’s needs. Paying rent for your building space doesn’t sound like a hidden cost- probably quite the opposite. Here are seven business costs you need to be aware of- and how they can potentially be an unnecessary drain on your finances and if you’re not careful, catch you off-guard. Some of these hidden business costs are sneakier than others. But it’s important that you can identify which costs are necessary for your business, and which are not. 7 Hidden Costs Affecting Your Business’s Bottom LineĪs the adage goes, it takes money to make money. Here are seven hidden costs that may be costing you money. One of them includes: where can I save money?Īnswering that question requires you to be able to identify the hidden costs straining company finances. There are several questions every business owner should be able to answer about their finances. ![]() These costs may be draining your company’s finances and before you realize it, are seriously jeopardizing your ability to do business or keep your doors open. Many of these costs are pretty straightforward- including obvious costs like paying rent for your retail or office space, buying equipment, and paying employees. As any small business owner knows, there are many costs that come with running a business.
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