Summit Success’ guest blog written by Dean Burgess
It’s a strange kind of excitement when you finally take the plunge into entrepreneurship. You map out your offerings, sketch a logo on a napkin, and maybe even spring for the fancy website template that makes you feel like you’re really doing it. But somewhere in that adrenaline rush, in between setting your prices and ordering your first shipment of branded stickers, a handful of expenses quietly line up in the shadows—expenses that will make their presence known right when you least want them to. Planning for these invisible potholes on the road to success is what separates the dreamers from the builders.
Professional Fees Are Inevitable, Even If You Think You’re Scrappy
You might have started your venture with a DIY spirit—wrestling with online templates and free legal document generators. That’ll carry you only so far. Eventually, you’ll need a lawyer to look over your contracts or an accountant to untangle your quarterly taxes. These aren’t the kind of professionals you want to bargain-hunt for either; mistakes in either arena can cost you way more than what you would’ve paid upfront. Budgeting for at least a few hours of professional services each quarter is less about splurging and more about surviving.
Insurance Is More Than Just a Safety Net, It’s a Necessity
It’s one thing to insure your laptop or camera gear, but small business insurance often flies under the radar until something bad happens. Whether it’s liability coverage, errors and omissions, or something niche like cyber insurance, skipping this part leaves you wildly exposed. One small claim—an accident at a pop-up shop, a botched shipment, a freelancer who says you never paid them—can tank your momentum if you’re not covered. Build insurance into your operating costs like you would rent or payroll.
The Price of Registering Your Business Entity
One of the first official steps to turning your idea into a legitimate business is registering it with the state, and that comes with both visible and hidden costs. Filing fees can range from modest to hefty depending on where you’re operating, so if you’re planning to incorporate, filing fees will vary based on your state. While you can go the DIY route, online formation services make it easier to set up a new Corporation, often bundling in an EIN, rush filing, and state-specific paperwork for a flat fee. Either way, make sure to budget not just for the initial registration, but for annual report filings and any renewal fees down the line.
Software Subscriptions Will Creep Up On You
At first, it’s one $9.99-a-month app here, a $12 cloud service there. But give it six months and suddenly your monthly burn includes eight or ten recurring software subscriptions, many of which you barely use. The cumulative cost of productivity tools, social media schedulers, CRM platforms, and file storage adds up quickly. Keep a running list of every tool you pay for and audit it every quarter; chances are, you’re overpaying for “efficiency.”
Employee-Adjacent Costs Don’t Show Up On Paychecks
Maybe you’re not hiring a full-time team yet. But even contractors, freelancers, and interns come with baggage—payroll software, onboarding time, and sometimes the need to upgrade your tools to accommodate more users. Then there are the unspoken costs: training time, miscommunications, rework, and the mental toll of becoming someone’s manager for the first time. Hiring people—even temporarily—requires more than just covering their invoices.
Permits, Licenses, and The Fine Print Nobody Reads
Depending on what you’re selling and where you’re selling it, you may need a whole checklist of licenses you’ve never heard of. Local business permits, state sales tax registrations, health department inspections—none of it is fun, but skipping these steps can stall your business or lead to penalties down the line. These costs aren’t always big individually, but they add up fast and can delay your launch if you’re not proactive. This is where that lawyer we mentioned earlier really earns their keep.
Marketing Is a Hungry, Bottomless Pit (Plan Accordingly)
You might think your product will speak for itself. But eventually you’ll want to run ads, collaborate with influencers, print business cards, or throw a launch party—and all of that costs more than you think. Even organic social media takes time and strategy, and that means hiring help or investing in tools. The most successful small brands you see online? They’re not just good, they’re funded. Set aside a healthy chunk of your budget for marketing even before you think you need it.
Time Is an Expense—And It’s the One You Underprice Most
Here’s the truth most spreadsheets won’t show you: your time is finite, and every minute you spend on admin work, invoicing, or chasing down that vendor is a cost. If you don’t build systems or outsource what you hate early on, your business growth slows, even if your revenue doesn’t. That $15-an-hour task you’re stubbornly doing yourself? It’s costing you the $150-an-hour task you could be building instead. Recognizing time as a resource—and budgeting for help—might be your smartest business move.
Nobody tells you this, but the first year of entrepreneurship is mostly you paying for things you didn’t think you’d need. Planning for these overlooked expenses isn’t about pessimism; it’s about building a business that can survive reality, not just imagination. The margin between success and stress is often one missed expense report away. So when you build your budget, double it—and then add 10% for everything else. You won’t regret being too prepared.
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