What start-up costs did you fail to anticipate in your business?

Question

This is a survey. To restate the question, when you formed your business, what costs did you fail to notice?

All responses are appreciated.

Rich Weese · Answer

Wifes' spending habits... Rich

Rusty Thompson · Answer

Time, which I find much more valuable than money. The amount of time that I have to invest to make things work.

Account Closed · Answer

Todd, the survey is vague to cover any cost. Feel free to reply with what comes to your mind.

Stinson Bland, what types of marketing costs? Flyers, signs, mailings, etc?

These are great responses! Keep posting and thank you, everyone, for your responses!

Todd Hoffman · Answer

If a multiple owner business, the cost to setup a clear partnership/management/operating agreements.

I have heard many be surprised by unexpected expense that could have been avoided, such as sewer repair costs.

Also I think a lot of new investors are optimistic on:
-holding costs (including interest, taxes, utilities, hoa dues etc.) 
-economic vacancy rates (real vacancy + non-collectable rent and related income) 
-turnover costs between tenants (normal ware and tear costs painting, carpet cleaning etc.)

I would also echo time tends to be under estimated and very costly.

This post is only my personal opinion. I make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information. None of the content should be considered a binding offer or agreement. Any terms or rates mentioned are subject change without notice. I am not an attorney nor am I a legal or tax professional. You should consider seeking professional legal, tax and other professional advice before acting.

Danny Day · Answer

Gas.. after spending $300-400 per month on gas you start wondering where the money went.

Stinson Bland · Answer

I really under estimated the cost of time and money needed to invest into marketing.  Marketing is the biggest cost associated with my business.  The bulk of my money and time is spent trying to find motivated sellers.

Todd Hoffman · Answer

Are you referring to start-up costs or operating costs? I assume you are primarily interested in real estate related businesses.

Chris Calabrese · Answer

Not sure what type of business you're starting, but here's a few as a flipper:

1.  Business licenses in the various towns where we work
2.  Increased fees for vehicle registrations in business name
3.  Large security deposits required by utilities for commercial accounts

What start-up costs did you fail to anticipate in your business?

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