What are the expected expenses when starting a business?

Expected expenses are the costs you can plan for when starting a business. These include business registration or incorporation fees, website and domain costs, marketing expenses like business cards or online ads, and office supplies or equipment such as laptops and software subscriptions. These are usually predictable one-time or early-stage costs.

What are unexpected expenses in a new business?

Unexpected expenses are costs that arise without warning and can disrupt your budget. Examples include repairs or replacements of equipment, professional services like lawyers or accountants, licensing or compliance fees, and customer chargebacks or refunds. It's recommended to keep an emergency fund to cover these surprises.

What are fixed expenses in a business?

Fixed expenses are predictable costs that remain the same each month. Common examples include rent or lease payments, business insurance premiums, recurring software subscriptions, and salaries for employees. Knowing your fixed expenses helps with budgeting and ensures you can cover non-negotiable costs.

What are variable expenses in a business?

Variable expenses fluctuate depending on business activity. They include costs like inventory or supplies, shipping and delivery, seasonal marketing or advertising, and utilities such as power, internet, or phone plans. Tracking these helps you manage cash flow and adjust your pricing or strategy.

How can I prepare for all types of business expenses?

To prepare for business expenses, familiarize yourself with the main categories: expected, unexpected, fixed, and variable costs. Budget for predictable expenses, keep an emergency fund for surprises, track variable costs closely, and spend wisely on items that help your business grow. Planning ahead reduces stress and keeps cash flow under control.

What Kind of Expenses Should You Expect When Starting a Business?

Natalie Paquette
8 hours ago
3 min read

You’re ready to start your own business - very exciting! - but let’s be real, it also comes with bills. Some are obvious, some sneak up on you, and others change month to month. Understanding the types of expenses you’ll run into can help you plan better, avoid surprises, and stay in control of your cash flow.

Let’s break them down.

Expected Expenses: The Ones You Can See Coming

These are the costs you probably already know you’ll need to budget for—your startup essentials. Think of them as the “no-brainers” of business expenses.

Business registration or incorporation fees – You’ll need to legally set up your business, and that usually involves a government filing fee.
Website and domain name – In today’s world, your digital presence is key. A domain name, hosting service, and maybe even a professional to build your website are standard.
Marketing – Whether it’s business cards, a logo, online ads, or social media help, some form of marketing will be necessary.
Office supplies and equipment – Even if you’re working from home, you’ll likely need a decent laptop, software subscriptions, or other tools specific to your industry.

These are the expenses you can estimate and prepare for. They’re usually one-time or predictable early-stage costs.

Unexpected Expenses: The Sneaky Ones

No matter how much you plan, some expenses just seem to appear out of nowhere. These are the ones that throw your budget off track if you’re not ready.

Repairs or replacements – Equipment breaks. Software crashes. Even your website might need emergency help.
Professional services – You might need a lawyer to review a contract or an accountant to fix a tax issue you didn’t know you had.
Licensing or compliance fees – Depending on your industry, there could be government or industry regulations you weren’t initially aware of.
Chargebacks or refunds – If you’re selling a product or service, there’s always a chance a customer will ask for their money back.

Pro tip: Always keep a small emergency fund just for these types of expenses. Even a few hundred dollars can make a difference.

Fixed Expenses: Same Amount, Same Time

Fixed expenses are the predictable costs that don’t change month-to-month. They’re great for budgeting because you always know what to expect.

Rent or lease – Whether it’s an office, retail space, or coworking membership, this is usually a fixed cost.
Insurance – Business insurance (like liability, property, or professional insurance) is typically paid monthly or annually at a fixed rate.
Software subscriptions – Think of tools like QuickBooks, Canva, Shopify, or any service you pay for on a recurring schedule.
Salaries (if you have employees) – If you’ve got a team, paying them is a fixed cost you’ll need to cover regularly.

You’ll want to make sure your recurring income (if you have any yet!) can comfortably cover your fixed expenses—these are non-negotiables.

Variable Expenses: The Ones That Fluctuate

Variable expenses change depending on your business activity. If you're busy, they go up. If things slow down, they might drop.

Inventory or supplies – If you’re in retail or manufacturing, buying product or raw materials will vary based on demand.
Shipping and delivery – The more you sell, the more you ship. Simple as that.
Marketing and advertising – You might invest more in marketing during certain seasons or promotional pushes.
Utilities – Power, internet, phone plans—these can fluctuate, especially if your workspace changes.

Tracking these can help you spot patterns and adjust your pricing or strategy accordingly.

Final Thoughts: Know What’s Coming (As Best You Can)

Every business is different, and so are its expenses. But getting familiar with these categories—expected, unexpected, fixed, and variable—gives you a roadmap. You won’t be able to predict everything, but with a little planning and some cushion for surprises, you’ll be better prepared to ride the ups and downs.

And remember: no expense is “bad” if it helps your business grow. The key is to spend wisely and know what you’re spending on.

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