If you are planning to start your own business, there are a few expenses that you will need to prepare for. Budgeting and planning out these expenses will help make sure that you’re able to run your business smoothly from the start. Keep reading to learn what these expenses are and how you can prepare for them!

Borrowing costs

Unless you have a whole heap of cash to spare, chances are you will be borrowing money to acquire capital to start and run your business. For small businesses, you will most likely be taking out a small business loan to finance your start up process. You can take out a small business loan from banks, savings institutions and other small business administrations.

As with all loans, you will be required to pay interest as you accumulate debt. It is important that you factor these interest payments in your overall start up expenses so you have a rough idea of how much debt your business will be in, and the complete amount you owe to your financing institution.

Permit and license fees

To legally run your start up business, you may need to acquire some form of permit or license. For example, in order to run a business in the food industry in New South Wales, Australia, you will need to have a food license permit issued by the local council. Such a permit requires a fee to apply for and acquire. As an essential cost to starting your business, you will need to research relevant permit and license fees and add them to your start up expenses.

There are many expenses you will need to prepare for when starting up your business - the ones above being a few of many. Make sure to do your research or consult with a start-up tax accountant for advice on your expenses.