If you’re endeavouring to perfect your working practices and launch your own business, it’s always healthy to be well aware of any expenses that can hit your business if you don’t manage your finances accurately. When accounting for unexpected expenses, it can often be difficult to locate the source of the bills,and you could inadvertently place your business under a lot of financial strain.
However, curveball expenses don’t need to come as the huge surprises that they once were – as, with a few preventative insurance policies and accurate accounting, you could save your business a lot of financial strain in the long term.
Continue reading below to find out some of the expenses that may pose a threat to your business – whether you’re a new business starting out or a stalwart of the tradesman industry.
Expenses related to equipment, supplies and resources
Tradesmen can often underestimate the value of the tools and equipment that they use to complete their services effectively. As well as specialist equipment, they rely on the provision of quality resources and materials to work with. These can be anything from bricks to mortar, wood to U-bends. Without these vital assets for trade, tradesmen are essentially deemed incapable of working.
There are many preventative methods that you can take to help ensure that your business is regularly stocked with quality resources. However, what about theft or damages? These occurrences are never expected, and the cost of repairing damages or replacing stolen machinery can place your business in extreme financial difficulty.
Why not consider getting your equipment ensured so that, if something does go amiss, you can quickly have it replaced and all expenses covered?
Increased insurance premiums
Although increased insurance premiums don’t sound that great, they are ten times better than being hit with a monumental bill to cover third-party medical bills or a compensation package for one of your injured workers. A workplace injury is only ever a day’s work away, even if you put your best efforts into safeguarding your employers and the public against any threats.
Italways makes sense to obtain relevant insurance policies such as employer’sliability insurance, worker compensation and publicliability insurance to help cover the six-figure sums thatcan be awarded against your business as aresult of a workplace incident.
Marketing and advertising costs
You may be one of the most skilled people in your trade, but if nobody even knows about you, how are you going to build a customer base? Building your reputation is time-consuming but also valuable – and often investing in your marketing or advertising strategy can provide quick dividends.
Additionally, the relevant insurance policies and official certifications and qualifications within your industry can be the perfect additions to publicise when you are advertising your business, creating a cost-effective and efficient strategy for marketing your business to potential customers.
When setting up as a sole trader or incorporating your own business, you should always plan for a rainy day, so to say – and this is where insurances including public liability insurance come in.