Image by Megan Rexazin from Pixabay

By Anica Oaks

When you first started your business, you dreamed of the day when it would be successful enough to experience growth year after year. Now that this time has arrived, you may find yourself dealing with a few more expenses than you anticipated. However, don’t let this deter you from staying on the path to success. As your business continues to get bigger, here are four new expenses you should anticipate.

Location costs

As your business grows, you may now find yourself outgrowing your current location. If so, you may have to consider either adding on to your existing building or perhaps even relocating your business to a new building nearby. Either way, you will encounter expenses associated with construction or maybe signing a new lease in a commercial area.

Equipment costs

While you may have been able to start your business with a minimal amount of equipment you may have been able to pick up second-hand, that may not be the case now. With your company growing, you now need new state-of-the-art equipment to keep up with customer demand. Thus, you’ll need to anticipate these new expenses as you prepare future budgets.

Supplier upgrades

It’s likely that as you get larger, your contracts for products may need to be upgraded. This is especially true if your suppliers are no longer able to keep up with your customer’s demands. There is, however, typically a cost to upgrade your suppliers – whether with additional order cadence or with an entirely new supplier.

Legal fees

Something that many business owners tend to overlook is the cost of legal fees. It is ideal to stay out of legal trouble as a business, however not all legal fees are related to getting into trouble. Contracts, such as order agreements with your suppliers or equipment leasing timelines and usage should be reviewed by an attorney who specializes in commercial law. At the beginning of your business, you can typically get away with one-off consultations. However, as you get more established, it is likely that you’ll need to move to a retainer base, which can increase your monthly cost to run your business.

Insurance costs

Unfortunately, as your business grows, so too do your insurance costs. Whether you move into a new building, add additional employees, or purchase new equipment, all of this will result in you paying more for insurance. No matter what type of business you have, you will always need premises and liability insurance to protect your company should employees, customers, vendors, or others suffer an accident while on your property. Also, remember that even if you are renting your business location, your landlord will likely not take on the full amount of legal responsibility regarding insurance.

Employee costs

While you may have started your business by yourself or with the help of only a few employees, that may no longer be the case years later. With added growth has come the need for additional employees, all of whom require salaries and benefits that can add up very quickly. In addition to these expenses, don’t forget to factor in expenses associated with training and other related areas.

By knowing which new expenses to anticipate as your business grows, you can plan ahead and know they will not bust your budget in the years to come.

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Anica Oaks is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote.