Tue 19 Aug 2008
Know the Cost Before Becoming the Boss
Just as grass always seems greener on the other side, the prospect of freedom and a high level of income will always lure employees to make the leap towards becoming an employer.
Here are some costs that you should calculate before you make that move to become the boss.
You Will Need To Invest Money to Start Your Business
You will need to put up some money before you can even start your business.
You will need to buy or rent your business premises, install the required equipment and even invest money to build up your inventory.
You Will Need To Take Care of All Expenses
Once you become an employer, then you will need to pay for all expenses related to your business.
This includes your employees' salaries, electricity and other utility bills, insurance, and many more. There will also be some unexpected expenses - such as your computers going on the blink or your delivery van breaking down - which will need to be taken care of immediately.
All of this costs money - sometimes a lot of it.
You Will Need To Pay Various Taxes
Once you start your own business, there will be various taxes that need to be paid based on your income.
You will need to hire a certified accountant or a tax consultant to help you organize tax payments and year-end returns.
You Will Need To Hire and Fire Employees
You will need to hire employees for your business, train them and maybe even fire them if they are dishonest or incapable in performing their duties.
All this costs money and adds to your expenses.
No doubt about it - running a small business costs money. Being aware means being prepared when you finally make the transition.