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Don’t let unexpected company expenses derail your growth. Learn about these common, surprise business expenses so you’re prepared if/when they pop up!
The billboards are shining with the midday sun. The money trees are growing — and customers are everywhere. Business is great, and you’d love for it to stay that way.
However, life is well-known to take unexpected turns. Storms come, it’s simply a matter of when.
But you don’t have to let it rain on your profits!
Read on for 12 company expenses forecasted to come up in the future so your business can be prepared.
1. Rent Goes Up
Your business is doing great and so are all the nearby businesses. Your city is growing, and therefore your rent and business expenses might grow along with it.
This isn’t a big deal until consumer demand fluctuates. Though when it does, higher rents can start to take from your profits.
2. Building Needs Repairs
On the contrary, if you own your company’s building, you’ll have maintenance expenses.
Floors will need to be replaced. Bathrooms will need to be renovated. Signs may need a repaint.
These company expenses aren’t necessarily a bad thing. Proper maintenance can help keep your business looking neat and professional.
3. Computers Stop Working
It’s a given that computers will encounter glitches at some point or another. Maybe your Macbook Air won’t turn on and you need some time to fix it.
Make sure you have a backup of all your files, passwords (especially the email passwords), and your contacts.
This way, you’ll guarantee your important business data stays safe while you find a solution.
4. Website Gets Hacked
Small businesses are often a target for website hacks. This is both annoying and dangerous if your site is a primary source of your business’s income.
In terms of security, the more valuable your site becomes, the more protection you need for it.
For example, if you had $100 dollars you’d put it in your wallet. If you had $10,000 dollars, you’d put it safely in the bank.
You wouldn’t just carry $10,000 around with you in cash. That would be risky.
The same principle applies to your business site: the more valuable/essential it is to paying your monthly business expenses, the more security it needs.
5. There’s a Shortage
Shortages happen from time to time and essential business supplies are not exempt.
For example, toilet paper for your customers.
It can hard to protect what the next mystery item will be. A budget-friendly way to be prepared is like putting gas in your car. Simply buy what you need when you need it instead of waiting until you’re super low.
6. You Get Sick
Colds happen to all of us. If you fulfill many roles in your business to the point where you are essential to its success, then consider training your team to fulfill those roles as well.
This way you can take time off when you need it.
7. Competition Increases
Competition is not unknown to the business world but its intensity can vary from industry to industry.
Find ways to make your business stand out in a positive light.
8. Product Needs a Patent
If you designed your product, then you need to get a patent for it. Otherwise, similar companies could steal your idea and thus, your profits.
The price of a patent can vary based on what kind you get. Make sure to get one early on.
9. Storm Damage
Storms are one of the most unexpected company expenses that can happen to your business. It can be fine weather one day and then the next day there can be a tornado or hurricane.
To prevent the impact of repair costs, consider getting the necessary insurance to combat it.
10. AC Goes Out
Depending on the model, AC units can quickly get pricy when they break and their weaknesses are often most apparent during their most needed season—summer.
Consider having some mini back-up air conditioners ready in case this happens and already have the contacts of the person you need to repair or replace it.
Break-ins are one of the most well-known annoyances to businesses as taking care of the building damage and increasing safety measures costs both time and money.
Investing in a good security system and putting security stickers on your windows is a great way to help decrease your chances of this occurrence.
12. Consumer Interests Change
Company expenses can vary significantly based on consumer demand. Pay attention to your buyer’s buying habits and what the usual trends are.
If your profits vary from month to month, make sure to set some aside so that you’ll be able to consistently cover all your company expenses.
Preparing for Company Expenses
Running a business is an adventure, and adventures tend to be full of mishaps. So how do you prepare?
Ultimately, one of the best ways to protect your business is to set up an emergency fund.
An emergency fund will make your business more flexible by allowing you to easily cover the costs of a broken AC in the hottest summer, repair the website in a timely manner, etc.
Bringing It All Together
The sun goes behind a cloud. The rain starts sprinkling from the dark sky. But that’s ok, because you’re prepared. Your money tree is safe.
There are many more mishaps that can significantly increase your company expenses, but you don’t have to let them get in your way.
Do the best you can to protect and prepare your business. This way, you can grow steadily in the long term.
Interested in more advice? Then feel free to explore the rest of this website for more helpful articles!