Hidden costs of business you may not consider

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The hidden costs of a business can be an eye-opener for new owners and small enterprises. Most of them aren’t as straightforward as you think, and they can also pop up when you least expect it. From licences and permits to payment processing, here are some to be aware of.
The cost of employees
The time might come when you need employees to help out at your company. Hiring employees is expensive because you have a salary commitment. But there’s also the cost of recruitment and any extras such as pension contributions. Additionally, there’s also the chance that an employee can cost you legal fees if they do something criminal. For example, you will need a fraud solicitor if any of your employees engage in fraudulent activity while at your business.
Getting licences and permits
There are licences and permits you need for almost every type of business. From cafés to construction, there are always hidden fees. Some are related to your sector, and others are general fees such as owning a commercial licence. There are also specialist fees you may need to pay for licences, such as handling hazardous waste. Then there are membership fees. These are optional but are almost always a great way to keep up with changes in your sector or niche.
Office costs of business
Unless you run a home-based business, you will need an office. An office can be thought of as a generic term for a place of operation. For example, some businesses need the traditional office. But you can also consider a garage, kitchen or salon in your office. And these are never cheap to run. There are insurance costs associated with the premises. Then there are equipment restocking fees and, of course, payment for gas, electricity and water at your place of business.
Payment processing issues
No modern business can run effectively without using credit and debit card systems. These make it easier for you and your customers, and everyone expects them. But these aren’t free, and your credit card payment processor will charge fees for their service. They act as the middleman between your bank and the customers’ bank. You may also pay higher fees for “risky” businesses such as online sales because they are at higher risk of chargeback requests.
Shrinkage and inventory problems
Shrinkage is the term for loss of inventory. There are many reasons for this, and in the USA alone, it costs businesses over $30 billion per year. Shrinkage can happen because of supply chain issues, delivery problems, and theft by employees, which is actually really common. An inventory management system is an added expense. But it can help reduce the impact of shrinkage, at least at your end. Fishbowl, NetSuite and Megaventory are among the best.
Summary
Employees are one of the hidden costs of business that you may not consider as they cost more than the salary you pay. There are also costs of running the office, not least utilities. You can also lose money because of shrinkage issues caused by the loss of some of your inventory.