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According to Companies House, 672,890 new companies were registered in the UK in the 2018/9 tax year. That’s an amazing 76.8 startups per hour!
We may see more new businesses than ever before, but that doesn’t mean an entrepreneur’s life has gotten easier. Due to the level of competition, almost 60% of UK startups do not survive more than five years.
If you are starting your own business and want to increase your chances of success, there are several factors you need to consider – and one of the most important of them is how you are managing your finances.
From legal fees to the cost of background checks on employees, there are all sorts of costs involved in starting a business. In this article, we’re breaking down three hidden costs that you may have forgotten to include in your budget.
1. Create a website
Regardless of where you are on your business trip, it’s rarely too early to start building a company website. In today’s world, a digital presence is vital for your business to gain a foothold and stand out from the crowd – and a website is the best way to do that.
However, having a specially built website doesn’t come cheap. According to Expert Market, a basic site costs anywhere from £ 200 to £ 500 on average, while a database-driven site could set you back by as much as £ 10,000.
If your business is likely to need a database driven website, you need to factor these costs into your budget. Remember, buying the most impressive website you can comfortably afford is often best, as the return on investment (ROI) can be a significant source of income for a business website.
2. Hiring an accountant
There are all kinds of automated accounting software. However, when you’re starting a start-up, hiring a real professional accountant is often the best way to go.
Whether you’re creating your business plan, sorting a loan application, or filing your taxes, an accountant can save you a lot of time and effort in the long run.
Although some business owners try to save money by sorting their finances on their own, this is not always the right solution. Not only could you make a costly mistake, but you could also save a lot of time that could have been better spent elsewhere.
Even if you end up choosing not to outsource your accounts, it’s always best to know that you have included the cost of an accountant in your budget. That way, if you do decide to hire, you won’t get caught.
3. Health and safety training
Don’t fall into the dangerous trap of forgetting the cost of health and safety training! If your company is at the stage where you are hiring, remember that you are legally required to provide your employees with the necessary health and safety training they need to do their jobs.
The exact training depends on the type of your company. Most basic courses, however, cost between £ 50 and £ 100. These are some of the training you may need to offer your employees:
- Workplace health and safety
- Fire marshaling
- First aid
- Food safety
- Safe moving and handling
- Risk assessments
Whether it’s a quick online session or an intensive course, it’s important not to overlook these crucial costs.
Unexpected costs can be a nasty surprise for any business owner. We hope this article has shown you some of the hidden costs that you need to consider when starting your own business.