Chance to join membership ends in
JOIN NOW
Chance to Join Your Profit Playbook™ ends in
ENROLL NOW

FREE LIVE WORKSHOP: Build your financial blueprint save your spot

SAVE YOUR SEAT NOW

Pre-order The Intentionally Profitable Planner Now, limited quantities available!

PRE ORDER NOW!

How Good Are You with Money as a CEO? Find Out in 5 minutes!

START THE QUIZ!
finance savvy ceo
  • Home
  • About
  • Membership
  • Programs
    • Finance Savvy CEO Foundation
  • Services
    • Financial Planning & Projections
    • Fractional CFO – Ongoing Financial Advisory & Coaching
    • Financial Reporting & Analysis
    • Strategic Planning
    • Mergers & Acquisitions Due Diligence Support
  • Template Shop
  • Resources
  • Podcast
  • Blog
  • Events
  • Say hi!
  • Member Login
  • Home
  • About
  • Membership
  • Programs
    • Finance Savvy CEO Foundation
  • Services
    • Financial Planning & Projections
    • Fractional CFO – Ongoing Financial Advisory & Coaching
    • Financial Reporting & Analysis
    • Strategic Planning
    • Mergers & Acquisitions Due Diligence Support
  • Template Shop
  • Resources
  • Podcast
  • Blog
  • Events
  • Say hi!
  • Member Login
Your browser does not support the video tag.

5 Business Expenses Small Business Owners Typically Underestimate

- by kat_dev

Many people start their dream of entrepreneurship with such positivity and high spirits, but underestimated expenses can quickly change this. This blog will help minimize some unpleasant surprises that may try to test your positivity and high spirit! I’ve compiled a small list of 5 business expenses that small business owners typically overlook, keep reading to find out what.

1. Renewable Permits, Licenses & Taxes

These are recurring expenses in the form of permits and licenses that are an essential part of your business – make sure you identify what exactly your specific business needs are and ensure you set aside enough money for them. It’s also important to keep in mind the various taxes and insurance involved with starting and running a business, it is quite commons to underestimate these costs as well as to not reevaluate them as the business grows.

 2. Marketing Costs

One of the most underestimated costs new businesses experience. You have an amazing product but now you need the customer to come to you and purchase it! Many small businesses underestimate how much it can cost to get customers to buy from you. Make sure you budget well for this as in today’s day and age marketing is one of the critical wheels that must turn for your business to function and grow.

3. Equipment & Maintenance Fees

It is easy to be convinced that you need the best of the best equipment to get started, but sometimes it’s better to save your capital in the beginning and opt for a lower end model without the bells and whistles until you can afford to upgrade and reinvest once your cash flow has increased.  Small businesses often believe they need to buy expensive machinery to compete at the level of higher-end businesses but this isn’t always the case, make sure you’re focusing on the total product or service you offer. Bigger machines often come with bigger bills for maintenance and repairs that you may not be prepared to take on just yet.

4. Employment Costs

The cost of hiring full-time employees is expensive. Unfortunately, many entrepreneurs only look at the salary component of this cost and fail to consider training, retaining bonuses, and benefits.

The people that help your business run significantly impact its potential. Salaries, personal and medical leave, health insurance, and training costs factor into the budget. Failing to invest properly in your employees, providing a living wage, a clean environment, office perks, and other benefits can lead to high employee turnover.  Furthermore, it costs about one-fifth of a worker’s salary to replace that person when they leave. In some industries that cost is even higher.

5. Credit Card Fees

As consumers we’re all wary of credit cards and the costs associated with them, they should be used sparingly and wisely and all bills should be paid on time. However, many businesses underestimate how credit cards affect their business. If your business accepts credit cards it is important to ensure you are aware of exactly how much you need to pay as vendor charges. It’s usually around 3% but varies among different companies. Additionally, if you carry a balance from month to month, don’t forget to factor in the cost of interest.

There are lot more costs that can be overlooked but for now, we hope these 5 tips will help you avoid some surprises and unnecessary costs down the road. [purchase_link id=”17498″ style=”plain” color=”” text=”Download your free accompanying worksheet here and start taking action now.”]

  • Share it:
  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • Pinterest

Post navigation

Previous PostNext Post

You Might Also Like

  • Your browser does not support the video tag.

    From Solopreneur to CEO: A Finance Savvy CEO®’s Guide to Hiring Your First Employees

  • Smart Borrowing: When and How to Use Business Loans for Small Business Owners

  • Maximizing Your Small Business's Potential with a Financial Review

    Maximizing Your Small Business’s Potential with a Financial Review

About this site

We make the financial side to running a business make cents

Categories

  • All
  • Financial Planning & Budgeting
  • Strategic Planning
  • Financial Management & Setup
  • Fundraising & Investor Readiness
  • Cash Flow Management
  • Investing and Reinvesting for Growth
  • Managing Debt & Loans
  • Money Mindset

BECOME A FINANCE SAVVY CEO® MEMBER

The place for small business owners, founders, and entrepreneurs, to build their confidence to run a profit center business and make confident financial decisions.

Unlock full access to the Membership Vault, including 30+ on-demand coaching videos, the Business Money Manual, exclusive discounts, and more!

JOIN NOW!

GET THE FINANCIAL TEA!

Sign up to stay in the know and receive financial tips, news alerts, discounts, event announcements and more to help you.

  • Home
  • About
  • Membership
  • Programs
    • Finance Savvy CEO Foundation
  • Services
    • Financial Planning & Projections
    • Fractional CFO – Ongoing Financial Advisory & Coaching
    • Financial Reporting & Analysis
    • Strategic Planning
    • Mergers & Acquisitions Due Diligence Support
  • Template Shop
  • Resources
  • Podcast
  • Blog
  • Events
  • Say hi!
  • Member Login

Let's Connect

Want to partner with us?

GET STARTED

Get the financial tea!

Sign up to stay in the know and receive financial tips, news alerts, discounts, event announcements and more to help you.

Finance Savvy CEO® © Copyright 2025 All Rights Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
error: Content is protected !!