In a time when all new businesses are struggling to make ends meet, it’s more essential than ever to find ways to avoid any unexpected costs. What this means is understanding the cost-related mistakes that other seemingly successful businesses have made over the years, and also looking at some of the costs that you’re paying currently and finding new and innovative ways to minimize them. Here are some of the top unexpected costs any business can face.
If you’re used to your standard domestic home internet bills, you’d be surprised by the amount that internet service providers charge to supply your office with broadband. That’s because compared with your basic family usage, your business internet connection requires a lot of bandwidth, so this means you’ll be forced to upgrade to expensive packages. The way to minimize this cost is by using an internet comparison site and by bundling services together – there’s no point buying separate internet and phone services when you can get them together for a reduced cost.
Recruitment is one of the costs which most businesses will tell you were unexpected when you drew up their financial forecasts. What this means is that you could end up spending your hard-earned capital on finding new employees when you could be spending it on developing your company. The best way to lower recruitment costs it to ensure you retain
the employees you already have. To do this, you need to make work a fun place to be with both financial and non-financial incentives, good feedback and development channels to help people to progress. By offering all of this, you’ll prevent people from jumping ship.
The reason insurance is such an unexpected cost to a number of businesses is that there are a huge number of cover types which most people have literally never heard of. This means that once you’ve established your business, you may end up requiring insurance policies you didn’t expect. To avoid this, you should spend some time speaking with an expert, bespoke insurer such as Catlin US and figure out what you need to enable you to plan sufficiently and incorporate the cost into your budget.
Ultimately, there are a large number of costs which a significant proportion of businesses don’t take into account. The result is reduced profit margins and potentially, even shut-
downs. Don’t let your company make the same mistake.