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Frequently Overlooked Costs When Starting a New Business

One of the most common questions that entrepreneurs and start-up owners ask is what the estimated costs are to start a business. It’s a good question.

All businesses spend money before they open their doors, and quite often, accurately forecasting what those costs will add up to can make all the difference.

Too often, business owners underestimate a particular start-up cost or don’t budget for it at all, putting them behind schedule financially when the doors finally open.

Effective cash flow management will go a long way to heading off the consequences of overlooked costs. Here at Bartercard, we have some great ideas on cash flow management for this purpose. Read on to learn more.

Cash Flow is King!

There are many costs to consider when starting up a new business. You’ve got the basics of running the business—salaries, materials, operating/manufacturing space, and insurance—the costs of which depend on your line of work. But some start-up expenses are less obvious, and they can have a big impact.

Here are a few you may not have considered in your initial capital-needs calculations, including:

  • Operational learning curves
  • Costs of living during the break-even period
  • Repeating costs (taxes, insurance, permits/licenses)
  • Marketing needs

At Bartercard, we feel it is important to explain the major benefits to your business of maximising cash flow by buying and selling with trade dollars. We want to remind you of the different ways that you can use your Trade Dollars to maximise those benefits and grow your business. Also, don’t forget the interest-free line of credit available to all members, which could be a real win for many businesses.

Be aware of overpriced professional consulting costs

Professional consulting costs are often overlooked by first-time entrepreneurs. Be mindful of expert services you are unfamiliar with but that may be necessary to start your business. These services often include tax accounting, legal assistance, financial guidance, and financial planning. Acquire estimated quotes for these services and include these expenses as part of your start-up costs.

Similarly, professional technological expenses can include the cost of purchasing a domain and host, building your website, information systems, computers, internet fees, and software, such as your accounting and payroll systems.

The Importance of Insurance

Business insurance often costs more than a start-up might have originally anticipated, especially when you start hiring employees. The amount of added liability when a business begins to hire employees is often overlooked. A business will need to add medical insurance and workers’ compensation insurance to the list, along with general liability insurance and professional liability insurance.

Insurance is strongly recommended for your space, inventory and equipment, and your employees. Typically, the types of insurance your business will need to consider are:

  • General Liability Insurance
  • Medical Insurance
  • Worker’s Compensation Insurance
  • Commercial Vehicle Insurance
  • Professional Liability Insurance

Permits and Licenses

Finally, the permits and licenses you may need to do business in your community aren’t always just one-time expenses. They must often be renewed, so make sure that you factor in and then budget for those recurring expenses. You’ll also want to set aside the money for membership dues that you have with business networking organisations like your local chamber of commerce or industry/professional groups.

The Bartercard Network is here for all to engage with

If you want to reduce these costs, be selective about the groups you join since annual memberships can cost you hundreds of dollars. Furthermore, focus on memberships that provide business-related discounts on items like insurance, loans, credit card fees, supplies, and training.

One of the key benefits of joining Bartercard is the networking events that provide opportunities for meeting local business owners within your region. Each Bartercard branch holds annual networking events which are attended by members actively looking to do business and support each other. Become a Bartercard member today and experience the benefits for your new business!


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Access Bartercard for 1 month complimentary* to see if it is the right fit for your business growth.

Access Bartercard for 1 month complimentary* to see if it is the right fit for your business growth.

*Membership fee may apply. Transaction fees will still apply for any trades that occur within the first month. Monthly membership: $49 a month + T$10 + T$10 DRF.