3 Often Overlooked Costs when Budgeting for your New Small Business

business cost

Creating a budget and financial plan for your business is a daunting and difficult task, but it is a necessary step to regulate spending and ensure that you maintain long-term success. Your budget should be based on your profit estimates, cost and expense estimates, and current investments into your business thus far. If you are just opening your business, profit estimates can be especially hard to predict, so it is best to use a smaller, easily attainable target at first. As your business progresses, you can use past data on sales and costs to adjust this target more accurately.     

To make your first budget or financial outline easier, here are some commonly overlooked items you should include in your cost or expense calculation!

Branded Materials

At this point, hopefully you have already purchased your business location (or online website if you are a digital-only company) and any equipment required, such as laptops or technology for employees, desks and chairs, printers, and so on. After purchasing these essentials, it is then important to account for the costs of branded materials. Examples of branded materials include signage for your storefront, business cards, window decorations, clothing/uniforms, or any other items you plan to put your logo and/or business name on for marketing purposes. Designing the perfect sign for your business can be difficult, so researching some business sign ideas can be a great first step. Many branded materials like signs and window decorations are a one-time purchase (unless you rebrand your business later on), making them good investments for the future. 

Research Costs

An often overlooked step is researching your target market, industry, and audience both before and after opening your business. Assessing your competition and learning what types of customers to target with your marketing, products, or services is crucial for making your business successful in the long term. Although research can set you ahead over time, it does require both upfront and ongoing costs. You can outsource your market research to a specialized company, or you can do your own research with an effective yet cheap marketing tool. Either way, including research costs in your budget upfront is a great way to increase your future success. 

Required Software Subscriptions

Another frequently forgotten cost is required software subscriptions or purchases. For example, if your business needs Photoshop software for designing mock-ups or creating graphics, including the price of an Adobe Creative Cloud subscription is necessary for your budget. If your business needs marketing or sales software, buying access to HubSpot or a similar product is also necessary. Additionally, including the price of maintaining and hosting your business website is important to include as well. 

Conclusion 

Overall, there are many things that must be included in your budget when you first start your business. Budgeting early can set you up for long-term success, so making an accurate financial plan is very important. Hopefully, this list has helped to simplify the process and give you some ideas for other often-forgotten costs to include for your unique business!

What to Consider when Setting up your Own Niche Business

Job or personal business

Often the best businesses stem from a passion for a specific niche. Do you have an idea that you think would make a great business platform? Start your own business project this year and find out how a niche can turn into a successful business.

Here are a few things to consider before starting a small business. 

Product

Before you contemplate an entire business, you need to nail your niche product. Most products are already available from larger enterprises. However, sometimes these products can be hard to obtain or of poor quality, creating a perfect opportunity for you. Specialise in this gap in the market and build up enough knowledge to answer the more difficult questions. Provide quality advice and information on your business website about your niche through an FAQ section. 

People

Identify your target market and whom you are targeting your product towards. One of the best things about owning a small business is connecting with your customers. While large businesses find it impossible to communicate with every customer, smaller business can add a personal touch to their service.

Consider rewarding regular customers and personalising your service to their specific wants and needs. Talk to your target customer base and build relationships by making regular contact with them. They can give provide you with constructive criticism that will improve your product, service and business strategies!

Marketing

How will people find out about your business? You need to establish a social media presence and educate yourself on social media marketing, smart emailing, and connecting with your customer base. Research the most-used social media platform for your target demographic and utilise it. For example, millennials and Gen-Zers respond to Instagram marketing, while older individuals prefer Facebook.  

Your business’s success or failure may depend on the connections you make with potential customers and clients. 

Process

Once you have a product and customer base, you need to process the sales. Log them in a revenue system, or if you are running your business through a CMS, use that. The most important part of a deal is the delivery and making sure the customer receives the product. It is essential to use a reliable parcel courier service to deliver your parcels and ensure they get to your end customers.

Retain

If you have a high-quality product and friendly customer service team, you will likely retain a customer base. Consider opting for a product that customers will re-purchase again and again.

Ensure your customer service is friendly and well-trained to answer all enquires quickly and effectively. Customers are far more likely to return to your business if it’s easier to order from your business, and any issues can be quickly resolved.