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What Are The Hidden Costs Of Running A Small Business?

If you’re trying to get your business off the ground, you must carefully consider how you’re going to manage your finances to make your business a success. Maybe you’ve considered the obvious issues, like how much manufacturing and supply are going to cost you, but have you thought about those sneaky hidden fees that come along with running your own small business? Thankfully, there are finance options to help you get started, like small business loans or an instant business loan, but having an idea of the bills you may come across is essential so you can prepare. Here are a few examples of the hidden costs of running a small business.

Office space and premises

When starting a small business, one of the most important factors that you are going to have to consider is the space or premises that you need to operate from to make a profit. If you have never had your own business before, you may not realise how much premises may set you back, whether that’s buying or renting. There are a few things to think about before deciding the type of premises that would be best for you. Think about whether you need premises, to begin with, or could you work from home and save money in the beginning? If you do need a place to work from, try and calculate how much space you’re going to need, so you’re not spending a huge amount in areas that you won’t use.

Of course, with premises comes utility bills which can also impact your budget. If you decide that you need a space to work from, make sure you compare the prices of utility providers so that you get the best deal to suit your income.

Wages and benefits

Once your business is up and running, you may need to employ others to help you run it, however, have you thought about the costs that they could potentially bring? It’s not just wages that you will have to pay your staff, it’s holiday and sick pay too, along with training costs so that they can give you the support that you need. You’ll need to look after your staff so that they feel valued and so that they care about your business, so you’ll also have to think about potential perks and other benefits that may end up costing you.


This is an important cost to factor into your small business finances. You’re going to need insurance to operate that covers factors like employer liability, public liability as well as insurance for your property and injuries. Choosing the right provider and plan can help you to manage costs and help you to find an option that is most suited to your budget. Doing your research and taking the time to talk to your provider about what you need from them means you can benefit from the best rates.

Delayed payments

Another element that you may not have thought of that may have an impact on business costs are late payments from customers and clients. There are many reasons why payments may be delayed from bank holidays to a delay within the bank transaction process – but this can seriously affect your finances. Once you have met your side of the deal by providing your goods and services, you need to be paid so that you can cover costs, which can have a knock effect on wages, bills, and suppliers. Make sure you set your terms and hold customers or clients accountable for late payments – you could even introduce late fees if this becomes a reoccurring issue.

Credit card fees

The sneakiest of all hidden payments is the credit card fee. Most of us these days don’t carry cash with contactless payments making purchases quick and easy – but using a credit card machine within your business means added fees. There is a range of vendors you can use, so comparing fees is essential to get the best deal. When you decide on a card vendor, you could also add an extra fee to the price of your products so that the cost is covered when your customers pay with a card, or you could offer a discount if your customer can make a payment with cash.

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