5 Hidden Expenses Startups Might Underestimate
Many of us dream of becoming our own bosses by starting small businesses. However, the challenges of setting a business even how small it is can be truly stressful. Then, the next concern is running it smoothly to make a profitable income. But, did you know that hidden expenses are often overlooked along the process, making it hard for a business owner to budget the cash flow that comes in and goes out as expenses? If you do not want to see yourself face the same ordeal of being surprised by these hidden expenses as you plan for a new business setup in Dubai, here’s the list.
Permits and licenses
Even a startup will need to comply with the local community’s requirements such as the acquisition of a business permit and other fees needed to operate legally. For most newbie entrepreneurs the cost to get these documents is not only one time because they need to be renewed yearly. So, if are thinking of a business partnership in Dubai better do research on the fees to get a business permit or license.
Office furniture and equipment
Any small business will need the basic office furniture and equipment to operate such as desk, working table, PC, printer, fax machine and a lot more. For a newbie entrepreneur with limited funds, investing in new office furniture and equipment is not a wise move. Buying secondhand would be the best option to save money. However, if you are thinking of renting a temporary space better look for a furnished office or a provider for shared offices wherein these basic office essentials are already inclusive in their various packages.
Part of the hidden expenses that a newbie entrepreneur often miss out is the maintenance cost. Maintaining your business’ physical condition in its good condition is a must to impress clients including investors. For example, if the electrical wiring of your rented business space becomes faulty, you may need to call the services of a licensed electrician. This unexpected cost can increase at any moment without warning. How to resolve this issue? Well, allocate some funds for maintenance cost, so that when the time comes you needed money, you got it covered.
As an employer you need to comply strictly with labor laws in the area where you plan to setup a business. Apart from the wages employees are also entitled health coverage, vacation leave, sick leave including training expenses. This is why as early as now while on the planning phase of your business setup include this cost in your budget.
Yes, time is a vital factor for any entrepreneur because any time lost for training employees, long commutes going to your office or meeting suppliers is income lost. It is important for a newbie entrepreneur to prioritize what matters most in the business’ operation in order to see growth and expansion. For issues that consume most of your time and energy, look for solutions. For example, if the chosen office space require lengthy travel, both to you and your employees, then, find a location that will reduce travel time.
Do you need assistance for your business setup in UAE? If yes, feel free to contact our representatives to help you move forward with your business goal.