4 Unexpected Costs Of Scaling Your Business
Here is the good news: after all that hard work, all those late nights and all that effort, your business is finally ready to scale up and grow. Here is the bad news: you are about to get slapped with a bunch of unexpected costs. We know right, talk about raining on your parade. Of course, we’re not just telling you this because we are mean and suffer from epicaricacy (we learned that word from a gardening blog of all things), we’re telling you this because it is better to be in the know and able to plan than it is to be blindsided.
So, without blabbering on too much more, here are some of the most gruesome unexpected costs you need to be aware of when it comes to growing your small business.
Not Just A New Space
When you grow, so does your need for more space. However, it isn’t just the increase in rent or the fact you will have to search for moving companies around me in order to make the whole thing possible, there are two other costs to be aware of too. Firstly, the location. Where you choose to move is going to have a big impact on your business revenue. We’re talking about the geographical location, the type of space and the conditions of your lease. The other thing that will increase is your utility bills. It’s only natural as a bigger space with more employees is going to cost more to run.
Add More Services To The List
This is one of those areas where a lot of small businesses tend to get caught out. But to put it bluntly (sorry), you are going to rely on more professional services, each of which will cost money. Attorneys, accountants, HR department, pest control, health and safety regulator, IT support and whatever else you can think of. Of course, outsourcing is a good option when you are first adjusting. But the real trick is attitude; think of these as investments, not costs.
Hidden Cost Of Employees
Bringing on more employees is a vital way to improve your resource and productivity, but it isn’t just their salary that will cost you. It is an area of business that is absolutely littered with unforeseen costs. Training and development additional equipment, extra energy costs, insurance, compensation, tax and payroll are all burdens you will need to account for. The other cost that tends to lurk in the shadows on this front is the cost of building a good office culture. Team-building exercises, work lunches, employee perks and rewards, health and wellness benefits and making employees feel valued all require money.
Sneaky Maintenance & Repair Costs
It doesn’t matter what your business does or what industry it is in, there will come a time when you need to mend, repair or replace some of your equipment. In fact, this will likely come around more often than you thought possible, such is the fast-paced world of tech. Computers, printers, kitchen appliances, machinery and more, much more. Don’t repair or replace and your productivity will fall faster than Trump’s approval rating. That is why you should really set aside some of your budget to manage this.