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Today is a guest post from Brigid Ludwig of Siege Media on the top unexpected costs you may not have thought of when first venturing out on your own with a side hustle.
Everyone wants to make more money. Whether it's disrupting the tech industry or to make enough to travel the world as a digital nomad, people are attracted to starting their own business venture. That's why 33 percent of the American workforce is self-employed. More and more people are seeking self-employment to take control of their income.
Although starting your own side hustle or business venture is widely appealing, when it comes to setting out on your own, the process can be intimidating. Securing your first client can be difficult. Balancing all those expenses and taxes at the end of the day can be tedious. It requires patience and determination to be a freelancer or business owner. In the beginning, rather than financial freedom and creative fulfillment, you'll likely need to put in long hours, experience many rejections, and see little return. Knowing this, many people shy away from even trying.
However, you should never let fear stop you from doing something you're interested in. The great part about working for yourself is that you get to decide how much or little to invest. Start off small, get used to taking on projects and clients and soon you'll be an experienced entrepreneur.
For everything else, it's important to stay as informed as you can about any possible challenges that come your way. Educate yourself on the expenses that can quickly add up when you're working for yourself. Between office supplies, business registration fees, and taxes, you'll quickly lose money if you aren't prepared. But with a solid financial plan for unexpected expenses, nothing can stop you.
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Let's take a look at some expenses that may surprise you:
Having an online presence as a small business owner or freelancer is essential in our modern world. Your website is a place for people to discover you, evaluate if you're a fit for their needs, and contact you. While setting one up doesn't have to involve a custom website design, you will still need to purchase a domain name and hosting. You'll need to buy the rights to the URL you wish to use, and pay for servers to host your traffic. This can cost up to a few hundred dollars in your first year alone.
Depending on what kind of business you do, you may have some fees associated with making your business run legally. If you have a physical location, you may have to apply and procure a permit or license in order to conduct business. Even if you're only a solopreneur working from your office, you may choose to register your business for a sole proprietorship in order to protect yourself from business liabilities.
A business that runs well is expensive — and a business that doesn't run well is even more expensive. In the case of lost product, lawsuits, or employee injury, business insurance can pay for unforeseen circumstances. While it could ultimately save you money in the long run, it's important to factor insurance payments into your monthly budget.
These are only some of the costs associated with starting your own business. To learn more about the costs of starting your own business, check out the visual by Turbo.
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