Unexpected Expenses of Starting A Business
Starting a business overseas can be both a rewarding and exciting venture. Not only can it provide entrepreneurs the advantages of a new market, but it can sometimes be easier and less time-consuming to open a business overseas –depending on the country. This is especially so for Brazilian business owners interested in coming to the U.S.
What You Need To Know Before Expanding Your Business Globally
However, if you are unfamiliar with the procedure of starting a business in the U.S, you are at a high risk of encountering unexpected costs that can potentially hurt your chances at success. In order to ensure that your business venture stays afloat, here are 4 hidden costs to consider before starting a business in the U.S:
Taxes. Regardless of whether you are generating revenue in your first year of business or not, you will likely have to pay taxes. On top of that, there are state taxes, real estate taxes, laws, and specific regulations pertaining to your industry and choice of business location. Not knowing these costs as you determine where to set up shop can cost you thousands of dollars.
Fees, Permits & Licenses. Depending on the type of business you want to start and the kind of product you want to sell, there are a number of permits and licenses you must acquire before you can legally start selling. From getting a license to operate a business from inside your own home to applying for a permit to store your products in a warehouse, there are many hidden costs and fees that you should know about.
Business Insurance. You may not think insurance is important or even needed in the first few years, but it always is. Property insurance can protect your inventory should it get damaged by a fire or flood in your warehouse, liability insurance will defend you against a potential lawsuit and even cyber insurance can cover you if you encounter data breaches or any online security issues.
Time. While you are responsible for the legalities and tax requirements needed to run your business, spending too much time on those tasks can cost you lost opportunities. For example, if you are choosing to spend your time doing payroll and other administrative responsibilities, you are taking away valuable time meeting with prospective clients, investors and etc.
Opening a business overseas require a substantial amount of time, research, resources and capital. Before you sit down to write your business plan, it is recommended that you consult an expert to help you prepare for the potential risks and costs that your business will encounter in a new market. ReachOut Business Solutions is committed to offering effective marketing strategies and providing avenues your business can explore to further distinguish your product. As a business consulting firm that assists Brazilian companies achieve success entering the US market, ReachOut is an expert in the areas of sales and marketing, technology, e-commerce, operations, distribution, accounting and human resources.
