When you start a small business, it’s fairly easy to determine many of your costs. Equipment. Inventory. Supplies. Fulfillment. Determining product costs, for example, is fairly straightforward.
But then there are the costs you don’t plan for, but that are just as real.
Here are five startup costs that Inc. reports entrepreneurs should keep an eye on:
- Employee costs. There’s more to this than their wages. Since every employee you hire is an investment, make sure you know the extent of your investment so you can calculate the true return you will receive.
- Legal costs. For those who believe having a lawyer review important documents or agreements is an unnecessary cost, remember this: What you don’t know can not only hurt you, but also put you out of business.
- Marketing costs. When you create your plan, assume you’ll need to spend at least 25% of your startup funds on marketing—and maybe more once you start to generate revenue.
- Accounting costs. Building a business that has outgrown simple accounting methods is a good problem to have. But it also costs money, even if only at tax preparation time.
- Team-building costs. A great team can result in an incredible increase in productivity, but such teams don’t build themselves.