Small Business Expenses: What Does It Cost To Open and Run A Business?

Small Business Expenses: What Does It Cost To Open and Run A Business?
By Carly Marx For every person who has had the idea of starting a business, there is that icy cold moment of clarity and reality that sets in when they realize that they have no idea of how much it really costs to open the doors, let alone to run their small business. They don't know the small business expenses, at least not all of them. There are some that are obvious, while others that might crop up without warning. Every business is different and each has individual costs and needs but these are some of the most generic and typical small business expenses that most businesses will see during their first year of operation. Where Will Your Business Be? One of the biggest business expenses is the cost of rental for the building and land where the business will be located. Even if you are a small business owner who is going to work from their home, you have to figure the cost of renting your home or your mortgage as a business expense. As your business grows, you have to consider whether or not you will have room for expansion or if you are going to need to find a whole new place to work from. The Cost of Running Your Business In addition to rental (or mortgage expense) the utilities that are needed to keep your business running will be another of the major small business expenses. Included in this category are your phones, your computer lines, electricity, heat and water costs. Anything that is needed to make something else work is part of this overall cost. The Tools of the Trade A service company will still need items like computers, phones, copy machines and other office machines. A company that sells items will need inventory and fixtures to hold those items. These small business expenses will vary depending on the size and intention of the company. Paying for Others If you are growing enough to hire additional staff for your company, then the cost of the salaries of those people will be another of the expenses that will change over time. You may be the only person in your company when you first start and then grow to have a staff of dozens or more as you progress. But, as your company gets bigger, your other expenses and questions about those expenses can increase as well. Article Source: http://EzineArticles.com/5393336