When a brand new business is in its infancy, there are many things that you may need to spend your money on. If you are serious about the success of your business, you can’t afford not to make certain investments, and these will serve you well. When you are considering which expenses are essential and which are not, reading our guide may help you narrow down your options.
We’ve outlined two very important expenses below, and then tell you how on earth you pay for them!
There are several insurances that you simply must take out if you want to adhere to legalities and protect yourself from expensive mistakes. General liability insurance is probably the most important as this will cover you in all sorts of areas. General liability insurance (GL) will protect you, should you not be able to keep your business up and running for whatever reason.
It will also make sure you are covered for any damage you may make to another business’s belongings, and it could even protect you should you get taken to court. You may wish to look at getting public liability insurance, which will cover your liability if you are working with the general public, as well as business interruption and worker’s compensation insurance. The first thing you should do when you open your business is to consult with an insurance expert and find out exactly which insurances you need. If you don’t have the right ones, you may find that you are stopped in your tracks very quickly. Clearly you will also need buildings and contents insurance for your premises, and vehicle insurance for any company cars.
A Marketing Budget
It doesn’t matter how great your company is – if you don’t tell people about it, how will they know?! You need to set aside a healthy-sized budget to pay for your website, your advertising and your marketing.
This is a valid business expense and one that you can’t afford not to pay for. You need to have experts on your side to help with things like social media marketing too, so make sure whoever you choose can offer the full service.
So How Do I Pay For It?!
When you are starting up a brand new business, every single cent will count. You may not have the sort of money you need in order to set your business up in the way you want, but luckily there are ways and means! Some people opt to get a business loan from a bank, and this can be a good way of getting lump sums in one go, but watch the level of interest you will be charged.
If you have a product or service that might attract some research and development funding, this is great. Put your application in and you may well find that they are happy to help out. There are funds available for developing certain areas of business, so it’s worth finding out a little more. You may even find you are eligible for tax incentives and/or breaks.
Spend money on your business carefully and wisely, and it won’t be long before you start seeing the returns.
- License: Creative Commons image source
- License: Creative Commons image source
- License: Royalty Free or iStock source: http://pixabay.com/en/money-application-letter-bank-40681/
Mark Johnson is an investment banker having vast experience in the finance sector and he shares extensive financial advice through his blogs. He writes for SR and ED Funding Consultants Inc. which provides an array of business consulting services to companies located in Canada. He enjoys reading in his free time.
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Mark Montoya has been working in personal branding for more than a decade for hundreds of online and offline companies, small businesses and individual service professionals. His focus has been toward improving the way jobseekers find employment on the Internet. He has synthesized his expertise by helping job seekers obtain their ideal choice of employment over the Internet on his sites MyOnlineCareerSpace.com and MyOnlineCareerCoach.com, and through his books 101 Tips Every Job Seeker Should Know and The Ultimate Online Job Search eBook.
“It is the responsibility of the individual to reject the prospect of mediocrity and to strive for the betterment of society as a whole” ~ Mark Montoya