December 7, 2009 | Category: Business Cash Flow | Tags: Small Business Credit Advice

If you are opening your first small business, you are likely eager to open your doors. You have the location, the product, and all the energy in the world, but there may be a few things you have forgotten. Here are a few expenses that many small businesses forget to plan for.

Wiring your location. The average store will need internet access, telephones, and other services, which you likely realize. What you may not realize is that companies providing these services often charge more for a business than for a residence. You may be paying as much as five to ten times as much for these things, so call ahead to get the rates and budget accordingly.

Cell phones. Not only will you and any partners need a business cell phone, you likely will need at least one for employees as well. This will allow you to keep constant contact with people who are picking up key orders or running other work errands. A cell phone is a necessary expense that few people consider when planning for their new small business’s budget.

Transportation. You will need a way to get to and from events, meetings, and other business related activities. Using your own car and gasoline without compensation will begin to eat into your own household budget, so the best idea to set up a reimbursement fund to pay yourself as well as any employees for fuel and wear and tear on their vehicle. If you think the expense is worth it, many companies eventually have a company vehicle with a gas card to avoid the complicated matter of reimbursements.

Tax services. This another area that many business owners simply overlook until April rolls along. Business taxes are complicated enough that no small business owner should try to go it alone, but high quality help requires a decent chunk of money. Because mistakes on your taxes can be expensive, it is worth it to pay for an experienced small business tax advisor to help you pay your fair share—and not a penny more.

Collections. This is an unfortunate part of running a small business: convincing reluctant customers to give you the money that you deserve for providing a high quality service or product. You likely don’t have the time or the inclination to call a customer several times a day or send constant letters reminding them of the consequences of not paying. Unfortunately, many people either can’t or won’t pay up, so build this sizeable expense into your profit margins.

As you can see, small business has many unexpected expenses, and these are just the top five. From toilet paper to printer paper, you likely will be surprised by the amount of bills even the smallest business can rack up. Be as frugal as you can, but also plan for some unexpected expenses and leave room in the budget for surprises. Don’t let everyday life nickel and dime you out of the success that you deserve.