Accounting Money

3 Common Expenses Every Business Should Be Prepared For

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It’s not free to run a business.Β  In fact, it’s very, very far from it. Even the thriftiest of individuals will have multiple business expenses, and some are going to be bigger than others. It is crucial to prepare for all of the biggest expenses so that you can plan your finances and work out how to save as much money as you can to avoid financial hardship when they do inevitably crop up.

Here we are the 3 most common.

Office and Premises Costs

A considerable amount of your regular business expenses will go on your office and/or business premises. This includes any rent payments you make, energy bills, and other ongoing costs. There is not a lot you can do to reduce these expenses, but here are a couple of ideas to help you out:

  • Switch to smaller premises in a less desirable area, to save on the rental costs
  • Switch to virtual offices, if possible, or take advantage of co-working spaces.

Employee Recruitment and Wages

Again, this is an essential expense that you cannot really avoid. Your employees are the backbone of your business, helping it to run smoothly and make you money, and deserve to be compensated fairly for their time and effort. However, you can save money by hiring freelance workers where possible. It is a lot cheaper, as you can hire them on an ad-hoc basis and you are not liable for paying their taxes, into their pension or any benefits such as holiday or maternity pay. It also enables you to reach a whole range of skills and expertise that you may not otherwise be able to access or afford.

Marketing Costs

Without marketing, potential clients and customers will not know that you exist, so it is important to put aside money to pay for this. There are various ways that you can go about marketing your business, and we advise doing a combination of all three:

  • Digital Marketing – Digital marketing is the way forward for many businesses now, with more and more operating solely online. Spend some time perfecting your website – with the help of professional website designers, if necessary. Make sure it is perfectly optimized for search engine optimization (SEO), so that is ranks as high as possible in search engines. If you don’t have a presence on social media, get one! It is a free and incredibly powerful platform for advertising and marketing, so utilize it.
  • Promotional Products– Look in your mug cupboard or your pencil pot. There is a very good chance that you have one or more promotional items from a business. That’s because everyone loves a freebie, even if it is advertising a business. You need to put aside some money to create promotional items – Laser Light Technologies can help you to make something really unique and different, to make your business stand out.
  • Traditional Marketing –Traditional forms of marketing, such as direct mail, flyers, leaflets, and billboards, are very much still relevant and effective, even in the digital age. Think carefully about your target audience and your placement to maximize its efficiency.
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