When thinking of business expenses, many people may think of the ongoing costs, such as advertising and marketing, payroll, utilities, and even taxes and business insurance. It’s also important to be aware of all of the startup costs that go into starting a business. Most future business owners are aware of startup costs such as office space (which can also be an ongoing expense because of rent) and inventory, but there are many other startup costs (that vary depending on the type of business you’re starting) that many first-time entrepreneurs forget about.

Furnishing Your Office Space

Even though the year 2020 has proven that many industries can still operate from the comfort of their own homes, it’s still helpful to have a separate office outside of the home for your business. For those types of businesses that need a separate space to successfully operate their business, whether it be a commercial building or industrial building, the business owner already knows that he or she will need a way to finance the building. However, many don’t think about the things that are needed inside of an office building until it’s time to furnish it.

Some common office furniture and supplies includes:

Desks (either for all employees or just the boss),
Desk chairs
Computers
Phones
Printers
Paper
Pens and pencils
Staplers and staples

If you have an employee break room, you’re going to need:

A table and chairs
Refrigerator
Microwave
Coffee maker
Water cooler

If you have a waiting room area for clients you’ll need:

Sofas/chairs
Tables
Many waiting rooms have TVs

Office Equipment

Like furniture, supplies, and appliances, your office equipment can range from a variety of items, depending on the type of industry you’re in. While corporate offices will need computers, printers, and telephones for all employees, a beauty salon will need chairs, hair dryers, and other hair styling equipment for all employees. No matter what type of business you’re opening, this can become quite expensive, so it’s important to remember these expenses you may need when you’re writing up your business plan.

Setting Up Your Business Website

We live in a digital world, so having a professional website for your business is extremely helpful for your success as a business owner. Some website builders, like Sqaurespace and Wix, help you create your business website for a monthly fee, but you can also hire a professional website builder to create your website. When going this route, it can cost you anywhere from $2,000 and $10,000, while an online website builder can cost up to $40 a month. A good website should include:

The name of your business
Your business logo
The location of your business
Your business phone number and email address
A list of the products you sell/services you provide
A way to purchase the products or book an appointment

Keep in mind that your website should be easy to navigate and provide useful information, to keep your customers from clicking off the page.

A Business Blog

Having a blog on your business website can help you in your marketing efforts, and it can also help you earn extra money. With a blog, not only can you improve your website rank but you can also allow other companies (that aren’t your competitors) to pay you to run ads on your blog and your website in general.

Services from Other Companies

While some business owners may do certain business tasks themselves or appoint these tasks to other employees within the company, it’s better to outsource certain business functions. Outsourcing costs a lot of money upfront, but it saves you money in the long run. You do lose some control over the business functions you choose to outsource, but you leave more time for you and your employees to focus on business matters. Some of the most commonly outsourced business functions include:

Accounting, bookkeeping, and payroll functions
Administrative tasks
Customer service
Human Resources
Information technology (IT) functions
Manufacturing
Marketing and sales
Shipping and logistics

While you’re hiring other companies for certain services, you may also need to rent services or equipment from other companies. An example would be a contracting company renting commercial vehicles for construction projects.

If you’re planning to start a business, make sure that you’ve calculated all of your startup costs and all of your ongoing costs. Keep in mind that there may also be some unexpected expenses that come up, so it’s a good idea to budget for these too.

This article appears in Jan 1 – Dec 31, 2022.