Every business expansion has its own challenges, but knowing how to plan for the unexpected can save you thousands and even keep your business afloat during the transition. Consider these pointers.<\/p>\n\n\n\n
Hiring Employees<\/strong><\/p>\n\n\n\n When it comes to new hires, an employee’s salary and the cost of business cards are just some of the many expenses you should budget for, advises Bill Walls, founder and CEO of InTouch Marketing based in Southern California. \u201cThere are several hidden costs that can increase your expected expenses associated with the new hire,\u201d he said. These include:<\/p>\n\n\n\n Even taking your employees out for lunch needs to be considered, Walls added. \u201cWhen you look at these potential hidden costs individually, a few dollars here and there may seem manageable. Put them all together and you’re looking at potentially a few thousand dollars you never even considered or budgeted for.\u201d<\/p>\n\n\n\n Moving to a Commercial Space<\/strong><\/p>\n\n\n\n Lisa Chu, owner of BlackNBianco, based in El Monte, California, said that she learned the hard way that there are sometimes hidden fees and up-front costs you need to consider when signing a commercial lease. What she did not expect when making the move from a home-based business to leasing a warehouse was a Common Area Maintenance, or CAM fee, which pays for the maintenance of common areas like hallways, washrooms and parking lots on the property. \u201cDepending on your location, it can add $100 to $500 per month to your lease,\u201d Chu said. \u201cThat adds up really quickly if you are on a shoestring budget.\u201d<\/p>\n\n\n\n When leasing a commercial space, expect the landlord to charge you at least a two-month deposit in addition to the first month\u2019s rent, advises Chu. There are also permits, licenses and other fees that may apply when making the move from home to a commercial space, including commercial liability insurance.<\/p>\n\n\n\n Expanding to a New Location<\/strong><\/p>\n\n\n\n Lauren Watkins, owner of Urbana Custom Clothier, started out in Salt Lake City and expanded to Washington, DC last year. \u201cI sure didn’t hit the ground running exactly like I had imagined,\u201d Watkins said, after encountering several unexpected costs she had to learn about the hard way, including the cost of networking events in her new community.<\/p>\n\n\n\n \u201cYou may have a couple of warm leads or a small clientele already in your new area, but that isn’t enough to survive long term. People need to know you exist. There are a lot of free events, but I would recommend budgeting the entire first year for regular attendance at organizations ($15 to $30 per event) a couple of times a week,” advises Watkins.<\/p>\n\n\n\n