Many entrepreneurs assume that starting an online business is a piece of cake. After all, you don’t have to pay for physical space and the overhead costs are minimal. By far the biggest appeal of operating an online business is due to the low amount of working capital needed to cover startup business expenses. In some cases, you might not need to apply for Dallas business loans – or do you?
Most aspiring entrepreneurs underestimate the costs of launching an online business. But just like any other venture, online stores have their own fair share of hidden business expenses. If you don’t prepare and address these expenses immediately, it can negatively impact your business. With that said, here are four of the most common ‘unforeseen’ business expenses.
1. Permits and Licenses
Contrary to popular belief, online businesses have to apply for permits and licenses as well. You may be asked to register for sales tax or you may be required to apply for a professional/occupation license before you can fully launch your online business. You may also have to obtain a general business license or a weights and measures license.
Keep in mind that the permits you need will vary depending on your state and district. If you do need one, the costs of obtaining permits and licenses can range from hundreds to even thousands of dollars.
2. Equipment and Maintenance
Equipment and machinery may be one of the most expensive expenses for online businesses. The most common equipment needed by online stores are laptops, routers, and more to keep your business going. Aside from purchasing or leasing equipment, you may also need to pay for repairs and maintenance along the way.
Since online businesses don’t have an office or physical space, most business owners think they won’t need insurance. However, you may still need different types of insurance to protect your business, such as product liability insurance, general liability insurance, and even a business interruption insurance. Applying for this kind of insurance coverage can cost you hundreds and even thousands of dollars.
4. Marketing and Advertising
If you don’t invest in marketing and advertising, it’s harder for you to grow and expand. While there are advertising strategies that don’t need monetary investment (content marketing, social media, Google My Business, etc.), a majority of time, you will still need to invest a few hundred or thousands of dollars to support your business. To boost the credibility of your online store, it’s also best to have a professional design your branding.
Dallas Business Loans – Small Business Loans for You
Whether you are properly prepared and positioned, the odds are high your business will face unforeseen business expenses. For this reason, it’s best to be proactive. With the help of the professionals at SMB Compass, you can apply for Dallas business loans and obtain additional working capital which will bolster your cash reserve. If you would like more details, you can talk to one of our lending experts – there is absolutely no obligation.