It may be a dream of yours to start a business. It is certainly that way for a lot of people. But there are a lot of details that go into initiating a business if you plan on it being feasible in the long term. And a big part of that is going to be infrastructure costs. Unless you started or run a business before, you may be unfamiliar with the kind of startup and maintenance costs dealing with these specific and often unseen issues.
Take three of them as examples. If you have a commercial building, do you know how to set up and maintain its electrical systems? How much do you know about creating an IT structure for all of your communication needs? And, if your business is successful, do you know how to scale up when the time is right? By answering those three questions, it will start your brainstorming power when it comes to budgeting for infrastructure costs.
When you plug something into a wall socket, you expect that thing to power on. But how much do you know about the systems in a building that allow that power transfer to happen? If you’re setting up a business, do you know how to contact an electrical service company to ensure the safety and practicality of all of the wiring in your building? If you aren’t familiar with electricity in general, then you could be at a distinct disadvantage. Small company owners also have to look into things like gas supply, water and sewer services, and even recycling and garbage. These infrastructure items are vitally important.
If you have a business, you are going to need a communication structure, which means that you need to invest in IT infrastructure. This is the hardware part, the software part, and the physical parts like equipment, wiring, and machines themselves. Large companies have an entire IT department. As a small business owner, you’ll be lucky if one person on your staff knows how to set up a router and the Internet. If you’re trying to expand your IT capabilities, it’s a good idea to contract with a company that specializes in the type of needs that you have.
One of the unusual reasons that businesses fail is because they become successful sooner than they are ready. In other words, a company is not prepared to scale. To be ready to get larger quickly to perform more tasks or create more products, you have to have the infrastructure in place.
Without creating this scalable infrastructure at the very onset of your company’s timeline, you will be setting yourself up for pain later. It’s good to think three to five years in advance of what your potential orders could be so that you know what to do when a client jumps in that can give you a large scale project.