Starting your own business is a great way to maximize your earning potential, especially if you identify a clear gap in the consumer market. However, it also requires a significant financial investment on your behalf too in order to get things up and running! (If you’re preparing to start your own business, check out the Key2Success Business Planner!)

With that in mind, here is a list of the common expenses you’ll incur when your business is in its infancy! 

Tools & Equipment. One of the biggest expenses you will be met with when starting out is the cost of the different tools you’ll need to run your business efficiently. For example, if you were starting a construction business, this could include tools such as a liquid level sensor. Buying the right equipment for your business is a key example of an area where your business will need to spend money to make (and save) money – as you simply cannot get the job done without it! 

Employee training. As you begin to take your business to the next level, you will likely begin to hire members of staff to join your team. As such, you should also ensure that you invest heavily in employee training schemes. For example, a health and safety training course will help protect your employees in the workplace, reducing the chance of accidents occurring that could cost you thousands in legal fees.  Other forms of employee training are also worthwhile investments, especially if they help your staff hone or develop new skills that will improve the day-to-day running of your business. 

Business insurance.

Business insurance is required by law, but there are many benefits to finding the right insurance policy. After all, this insurance is designed to protect you from “everyday risks, such as mistakes, stock or premises damage, and legal costs.” As a result, while it may seem like an additional expense when you are first starting, it’s worthwhile, especially as these everyday risks could leave you significantly out of pocket if you were expected to cover them yourself. 

Marketing campaigns. 

As a business owner, you’ll often be sitting thinking about the different ways in which you could bring in new customers. After all, they are your main source of income. However, if they have never heard of your brand, there’s no way you can expect to gain their custom. This means that you must invest heavily into marketing; whether that be a carefully curated social media campaign or more traditional methods such as posters and flyers. According to a recent study “in the early days, you should expect to allocate anywhere from 12% to 25% of your gross revenue” to your marketing campaigns. 

If you’ve opted to carry out your marketing in-house, pay close attention to your metrics so that you’re able to identify whether or not your marketing strategy is failing. If you realize it’s not working as well as it should, you may want to consider outsourcing these duties. This will give you a better chance at success overall, increasing your reach and growing your customer base.  

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