According to Companies House, 672,890 new businesses were registered in the UK in the 2018/9 tax year. That’s a staggering 76.8 start-ups every hour!
We may be seeing more new businesses than ever before, but that doesn’t mean the life of an entrepreneur has got any easier. In fact, the level of competition means that almost 60% of British start-ups won’t survive for longer than five years.
If you’re starting your own business and want to increase your chances of success, there are various factors you’ll need to consider – and one of the most important of these is how you’ll manage your finances.
From legal fees to the cost of background check for employees, there are all sorts of expenses associated with starting a business. In this article, we’ll share three hidden costs that you might have forgotten to factor into your budget.
1. Building A Website
No matter where you are in your business journey, it’s rarely too early to build a company website. In today’s world, a digital presence is crucial to help your business gain traction and stand out from the crowd – and a website is the best way to do it.
But a specially-built website doesn’t come cheap. According to Expert Market, a basic site will cost between £200-£500 on average, while a database-driven site could set you back by as much as £10,000.
If your business is likely to need a database-driven website, you’ll need to take this cost into account when drawing up your budget. Remember that it’s often best to buy the most impressive website you can comfortably afford, as the ROI (return on investment) for a company site can be a significant source of income.
2. Hiring A Company Accountant
There are all kinds of automated accounting software available – but if you’re launching a start-up, hiring a real professional accountant is often the best way forwards.
Whether you’re writing your business plan, sorting a loan application, or filing your taxes, an accountant will be able to save you a huge amount of time and effort in the long-run.
Although some entrepreneurs aim to save money by sorting their finances themselves, this isn’t always the right solution. Not only could you end up making a costly mistake – but you’ll also need a lot of time to spare, which could have been better spent elsewhere.
Even if you end up deciding not to outsource your accounts, it’s always best to know that you’ve factored the cost of an accountant into your budget. That way, you won’t be caught out if you choose to hire one after all.
3. Health And Safety Training
Don’t fall into the dangerous trap of forgetting the cost of health and safety training! If your business is at the stage where you’re starting to hire employees, remember that you’re legally obliged to provide your staff with the necessary health and safety training they need to do their job.
The exact training required will depend on the nature of your business. However, most basic courses will cost anywhere between £50 and £100. These are some of the training courses you may need to offer your staff:
- Health & Safety in the Workplace
- Fire Marshalling
- First Aid
- Food Safety
- Safe Moving and Handling
- Risk Assessments
Whether it’s a quick online session or an intensive course, it’s important not to overlook these crucial costs.
Unexpected costs can be a nasty surprise for any entrepreneur. We hope that this article has shown you some of the hidden costs you’ll need to consider when starting your own business.