Protecting Your Startups from Unexpected Costs

So, you’ve defied all odds and decided to start your own company. That takes guts! As you know, owning a startup means having a lot of responsibility. It also means protecting your company from threats—a big one being unexpected costs. If you don’t include some commonly overlooked things in your budget plan, you might be looking at money issues down the line.

Here’s what costs to expect and how to protect your startup from them.

Equipment Breakdown

One thing startups often overlook is equipment breakdown/malfunction. You never know when something is going to break or you’re going to need a couple of new computers for the office. That’s why you should always include an emergency fund in your budget plan as well as a certain amount of money for startup equipment each month.

Believe it or not, those costs add up like crazy. Be prepared by expecting the worst. Additionally, don’t feel the need to have the best of everything whenever you purchase. Using sites like eBay and getting used equipment is totally fine. Even Steve Jobs started in a garage.

Cyber Attacks

Cyber attacks pop up a lot more often than you’d think. In fact, about half of small businesses have suffered from mishaps in their cybersecurity. Obviously, this isn’t something to take lightly. Invest in cyber insurance to be covered if hackers get into your system. If you’re hacked, you risk far more than just your business. All of your clientele information can be leaked which can hurt your startup drastically. You don’t want to lose customers on top of getting hacked because they think you’re an unprepared company.


If your company sells physical products, there’s also the risk of shrinkage. In fact, shrinkage costs retailers an estimated $45 billion per year in the U.S. alone. Examples of shrinkage include shoplifting, employee theft, paperwork errors, and vendor fraud. However, there’s an additional six percent of losses that can’t be accounted for under any of these categories.

Business Insurance

This one’s pretty obvious, but you’d be surprised how many startups think they don’t need it. Yep, business insurance. Getting your company insured should be one of your first priorities. Running into problems down the line is inevitable. Whether it’s a natural disaster or a dishonest employee, you don’t want to be stuck without insurance when looking at a liability.

You can get a small business insurance comparison of quotes easily online. Just figure out what exactly your start up needs. For instance, you’ll need basic overage like workers’ compensation and general liability insurance, but other elements of your coverage can depend entirely up to you. Make sure you know what you’re getting with your coverage and ask for other benefits if you need them.


As an employee, you probably never thought much about taxes. However, that definitely changes as a business owner. Even if you’re not generating that much money, you’re still going to owe taxes. Don’t forget to come up with a business plan where you can afford to pay Uncle Sam.

So, there you have it, entrepreneur. With these small things to expect, you’ll be prepared for all money aspects of your startup. Your budget plan will be in tip top shape. Just remember to invest in insurance, cut costs on equipment, and include taxes and cyber-attacks into your plan.