November 06, 2013

The Hidden Cost of Entrepreneurship - Be Ready!

There are so many different costs as you start your own business, you had better have a separate amount of money set aside for those emergency things you didn’t know about. Talk about hidden fees, and it will be securely nestled into a confusion of rules, regulations, tests, insurance and health issues.

Rules

You will need to know the laws and regulations for the business that you are about to open. Check with the state to know what licenses you have to have. What are the different laws that you have to meet? Then check with the County that you live in and if you are in the city, what permits you need to even open. You may even have to go in front of a board of regulators, before you can even open your doors. Remember, State, County and then City. Next, check with the Federal Government and find out what you need with them. Most likely a tax identification number to ascertain you are paying your Federal taxes for the business as well as Workman’s Compensation and Social Security is you have employees.

Regulations
Depending upon the type of business that you are opening, you always have to check what kind of regulations are going to interfere with what you are doing. Meaning, you need to see if there are buildings that have to be a certain space apart, or are you in a flood plain, etc., etc.

Tests

There are always tests to be taken. Do you have to have soil samples? Are there water samples that have to be taken before water can be used? How long has the building been sitting? Will there be rodent issues? Are there bugs to delete with? No matter what, check again with the State, County, and the City you are going to be in. Ask a lot of questions. Then find out what permits you need for what you are doing. And if you are opening any kind of food establishment, you have a District Health Department to deal with and their laws, rules, regulations and permits.

Insurance

Insurance is always a fun way to throw money away. As far as a new business is concerned, it costs way too much when you are just getting started, and they will want to put extra things into the pot before you are even sure what you need. Read their fine print, which is hard, because they go on and on and try and figure out how to make you pay, and you get very little in return.

Stay alert

When you go after your new business, you had better have a lot of lists for each thing you need to deal with; otherwise you will drown in a sea of paperwork and rules. As you go through each one, cover what you need in money. Your capital investment will likely be 25% more than you anticipated getting the doors open, and if you still have inventory to purchase, you may be short. Stay positive and cover your bases. It can all work out for the better, just take a deep breath and dive in!


About the author: Blair Thomas is an electronic payment expert, who loves all things finance and planning.  He is also the co-founder of eMerchantBroker.com, the #1 high risk credit card processing company in the country. But when he’s not running his business he’s more than likely exploring his other passions; music, mountain biking and camping.  

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