10 expenses to plan for when starting your own business
<p>When you start your own business, there are a lot of things to think about. Between the purchase of equipment, registration fees, the website and software, several expenses are to be expected. To avoid unpleasant surprises, let's take a look at the costs to anticipate so that you can start your entrepreneurial adventure on solid foundation.</p>
<h3><strong>Administrative and legal expenses</strong></h3>
<h3><strong>Business Registration and Name Registration</strong></h3>
<p>A large proportion of entrepreneurs will have to register their business. This step is mandatory, with a few exceptions. For example, if you are running a sole proprietorship under your first and last name, you are not required to obtain a registration certificate. The <a href="https://www.quebec.ca/en/businesses-and-self-employed-workers/start-entreprise/register-constitute-enterprise/learn-about-registration/about-registration">Government of Québec's</a> website offers a list of persons and legal forms of business that must file a declaration of registration. The latter incurs a fee at the time of submission of the application, as well as at the time of annual renewal.</p>
<p>You may also have to set aside an amount to reserve a business name with the Registraire des entreprises. This step is mandatory if you are not operating your business under your first and last name. Choosing a distinctive name can also play a strategic role in developing your brand image and recognizing your business.</p>
<h3><strong>Corporate bank account</strong></h3>
<p>Even though opening a business bank account is not required for all legal forms of business, it is highly recommended that you separate your personal finances from those of your business. This division will make your accountant's job easier to file your tax returns and financial statements. Many financial institutions offer low-cost monthly plans specifically designed for self-employed individuals. Fees will vary depending on the services you offer.</p>
<p>A business bank account also offers other benefits. It allows you to get a business credit card, better manage your cash flow, and build a stronger banking relationship. This could also come in handy if you need financing in the future.</p>
<h3><strong>Notary and lawyer fees</strong></h3>
<p>You're about to start a business, but do you know the differences between a sole proprietorship, a corporation, a partnership or a co-operative? Which legal form is right for you? A notary or lawyer can explain the particularities of each possible status and help you identify the one that best meets your needs and objectives.</p>
<p>These professionals are also valuable allies in drafting a <a href="https://www.momenteo.com/blog/the-importance-of-having-a-good-contract-of-services">service contract</a>, an essential document for your future business relationships. It is a legal tool that protects you, clarifies everyone's responsibilities and prevents misunderstandings.</p>
<h3><strong>Accountant's fees</strong></h3>
<p>Hiring an accountant as soon as you start your business is a great idea. This professional will help you set up an effective management system and will help you get off to a good financial start. They can also guide you in creating your business plan, advise you on Quebec's specific tax obligations and explain the deductions to which you may be entitled to reduce the amount owed for your taxes. An accountant is also a strategic resource to avoid costly mistakes and optimize the management of your income from your first few months of business.</p>
<h3><strong>Civil or professional liability insurance</strong></h3>
<p>Working for yourself also means having to protect yourself in the event of a misfortune. Even if you do everything possible to offer quality service to your customers and prevent incidents, you are not immune to an unfortunate event: Lawsuit, fire, theft of equipment. Business insurance protects you and can even save your company from a difficult financial situation.</p>
<p>In fact, some sectors require professionals to take out professional liability insurance. This is the case for freelancers working in the fields of health, accounting or law, among others.</p>
<h3><strong>Business Equipment and Software Expenses</strong></h3>
<h3><strong>Hardware and software needed for your job</strong></h3>
<p>Whether you're selling physical products or offering services, you'll need the right equipment to run your business. This is an essential element to consider before launching your project. Can you afford to pay for these expenses out of pocket or do you need financing?</p>
<p>For some freelancers, the starting cost isn't really high. For example, a writer will be able to do their work with a computer, word processing software and a revision tool such as Antidote. A photographer, on the other hand, will have to invest in more expensive equipment: professional camera, specialized lenses, external flashes, tripods, etc.</p>
<p>Also anticipate that your equipment may become obsolete over the years. You must therefore budget to replace or update it every few years.</p>
<h3><strong>Invoicing and accounting software</strong></h3>
<p>A good invoicing and accounting system is a must to ensure effective management of your finances. Using software like <a href="https://www.momenteo.com/">Momenteo</a> from the start allows you to establish a good foundation and will save you from racking your brain with Excel! It also allows you to bring everything related to your accounting together in one place, making your accountant's job easier.</p>
<h3><strong>Marketing Expenses</strong></h3>
<h3><strong>Logo and branding</strong></h3>
<p>Having a strong brand image and a distinctive logo is what allows you to show your colors and stand out as an entrepreneur. Your logo, the fonts you use, the colors you choose, all of these elements influence the public's perception of you.</p>
<p>Using tools like Canva or FreeLogoDesign, you can take care of the creation of your visual identity yourself. That said, hiring a professional graphic designer is still a great option. Although more expensive, this approach guarantees you a consistent, professional result that is aligned with your business. This will save you from frequent redesigns and you will gain credibility from the start.</p>
<h3><strong>Website</strong></h3>
<p>A website showcases your company. It's often the first thing your potential customers will see, so it plays a crucial role in being perceived as serious and professional. It also helps build your credibility, clarify what you offer, and increase your online visibility. Before you even think about the design, you should know that you will have to plan for fees of the domain name and for the hosting of your site, two elements that must be renewed annually. If you are dealing with a professional, you will also have to budget for the costs related to creating the website.</p>
<p>As with your brand image, several tools allow you to design your own website, even without design experience. It is an economical option, but it requires time and a certain familiarity with technology. The important thing is to choose a solution that suits your abilities, and your budget!</p>
<h3><strong>Advertising</strong></h3>
<p>Advertising is a great way to make your business known, expand your network of contacts, and attract your first customers. There are several types that suit different budgets: <a href="https://www.momenteo.com/blog/how-social-media-advertising-can-bring-you-new-customers">social media</a> and Google ads, direct mail campaigns, billboards. The options are numerous!</p>
<p>This step is optional, with some freelancers doing very well with word-of-mouth. That said, investing in advertising from the start can give you a head start. This allows you to quickly generate visibility, get data on your target clientele and establish a professional presence in your first weeks as a freelancer.</p>
<p>Planning your expenses even before launching your business means setting yourself up for success without unnecessary stress. Even if some expenses may seem high at first, they often represent a strategic investment for the future. And remember, it's better to budget too much than too little!</p>
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<p>Roxane has always written and dreamed of making a living from her pen. Now a web editor, proofreader and author, we can say that it's mission accomplished!</p>