There’s this business saying I hear frequently: Cheaper, faster, or better… pick two. The truth is, it’s very rare for you to find all three without compromising your business. The other line I commonly hear is: you need to spend money to make money. And, for the purposes of the business expenses list in this post, it’s true.
There are certain things you can honestly do at a low (or even no) cost, but when it comes to your business, you really can’t afford to cheap out on the following:
While I’ve talked about whether it’s better to hire or contract your work, what I didn’t cover is how important it is to find the right person to do the job. Finding the right person to do the job isn’t always the same as finding the cheapest person, and sometimes if you compromise on costs, you also end up compromising your business overall.
So when it comes to hiring, while you can do it cheap make sure you also do it smart. Find good people who are passionate about what you’re doing that you can trust to get the job done right.
Finances can be a real challenge, especially if you’re not financially inclined. One of the business costs you can’t cheap out on is a good accountant or bookkeeper. Have you ever tried having your taxes done when your accounting paperwork is in disarray, and you can’t tell the money you made from the money you spent? Because you most definitely don’t want to.
While you most certainly don’t have to go with the most expensive accountant on the block, make sure you go with someone who understands your business and understands accounting. Anything less and you may as well do it yourself.
I cannot begin to tell you the mess that goes with having poor insurance. Insurance is there to make sure that if something happens, you are covered. Now hopefully nothing happens but in case it does, it’s crucial that you have proper coverage.
And getting the cheapest insurance will not help you out in the long run. Make sure whatever insurance you get covers what you need it to – more if you can spare it because you never really know.
Legal fees are also in the category of “when and if you need them” but when and if you need them, you need to make sure to invest. Really invest. There’s no solution to a bad lawyer, except having a better one. So legal fees are definitely not one of the business costs you want to cheap out on.
Chances are at some point in your business’ life you’ll have to hire a lawyer, so when you do make sure that you take the time to find one that is right for you and your business.
What business costs do you have that you refuse to cheap out on? Tell me about them in the comments below.
Looking For More Insights on Business Costs?
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Tae started out as a journalist before following the money into the corporate world. But it turns out that the grass isn’t always greener and now you can find her spending most of her time writing about all the things she loves. Namely, money, travel and business with a hefty dose of self-deprecating humor. She is a podcast fanatic, blogging aficionado and loves to find new ways to turn passions into cold hard cash!