Adding a new business offering is a path to supplementary revenue, but it also may come with unforeseen costs. As a result, innovations and improvements are often derailed by hidden expenses. To avoid last-minute panic, improve your planning by tracking your outlays on new projects and learning what may wreck your budget.
Consider up-front cash outlays
It’s only after you make up-front cash outlays for a new service or an extra feature that you’ll see the resulting increase in income. Each new project requires its own set of calibrations, so create a timeline of necessary expenditures: A new offering to customers calls for changes to your website, printed materials, and advertising copy; you might need new supplies or special products; perhaps some extra training or certification is required.
Unexpected costs happen with just about any new commercial offering in practically any type of business. Even a solo operation, which is unlikely to add new employees as part of a new project, may still need to hire outside assistance for non-recurring steps involved in implementing a change.
Track now; benefit in the future
Create a budget for these project-specific costs at the start of a project and track them. You may find you’ve under-budgeted – not accounting for the little things that arise or not considering items that cost more than you expected.
After some experience in these matters, you’ll learn to anticipate every cost, and to budget for those hidden extras. The result is better planning for new initiatives in the future.