The Hidden Costs of Running an Office
Those who are just starting out in the business world might try to work from home during the early stages of their operation.
That is a fantastic move because it helps to keep expenditure to a minimum.
However, at some point, most entrepreneurs will need to rent an office for their growing companies. It’s vital that everyone understands all the costs involved if they want to create an accurate budget. With that in mind, this article will highlight some of the essential, but often hidden, costs you might encounter.
Repairs and Maintenance
There is no getting away from the fact that you will have to deal with repairs and maintenance when you have an office. Most commercial rental contracts make you responsible for all minor works and building jobs during the lease period. That means you might have to fix leaks, replace windows and doors, or more. You will also have to pay someone to come and assess all your electrical items to ensure they’re safe once every six months. On top of that, you’ll have to consider heating, air conditioner, and fire extinguisher maintenance too. So, be sure to research local professionals and keep their contact details handy.
As a business owner, you will have to pay for lots of different types of insurance within your policy. At the very least, you’re going to need:
- Professional liability insurance.
- Workers’ compensation insurance.
- Home-based businesses.
- Product liability insurance.
- Vehicle insurance.
- Business interruption insurance.
However, when you move to premises, you’ll have to add property insurance to that list. Just call your provider and inquire about placing that cover on your policy too. With a bit of luck, it shouldn’t increase the price too much if you stick with the same company.
Energy and Utilities
The amount you pay each month for your energy, water, upgrades, and other utilities will vary depending on the size and location of your premises. However, there are lots of things you can do to reduce the price and ensure you get the best deal possible. Firstly, you could use price comparison websites to see if it’s possible to make savings. Secondly, you could install some solar panels on the roof and use clean energy while protecting the environment. The latter solution is preferable as all business owners need to think long and hard about their effect on the planet. Also, that move will pay for itself within a couple of years.
Now you know more about the hidden costs of running an office, you should manage to create an accurate budget when you prepare to move to commercial premises. Of course, depending on the nature of your company, you might have to cover lots of other expenses. So, just use some common sense and ensure you leave no stone unturned when performing your calculations and working out how much cash you need in the bank. Keep moving in the right direction and you will reach your destination eventually, no matter how slowly you walk. Good luck!