WHAT UNEXPECTED BUSINESS EXPENSE HAVE YOU HAD TO HANDLE?
Business owners discuss dealing with surprise costs
“When I least expected it, my landlord of 10 years asked me to leave or buy the building. I contacted my existing team of professionals. We had many meetings, put a deal together and executed it with a successful outcome.The unexpected expense was massive and the exercise was fraught with difficulty at every level, but the team I’d built over 20 years was behind me 100 per cent. So were my customers. I now have an incredible asset.” Mike Chartrand, owner, A Laptop Shoppe, alaptopshoppe.com “Time. Social media is probably the biggest expense because of the time it takes to manage. The second largest expense is the time we spend following up with prospects and clients.” Corey Allard, founder, Change Your Game, changeyourgame.co “For us, it’s more an unexpected drop in business. In the past year certain funding sources have dried up, leaving a shortfall in income. We’ve worked around this by cutting expenses, focusing on other areas and adjusting or delaying compensation. What we have not done is cut staff. When the upturn comes we’ll need their expertise and relationships. They are essential to our future.” Peter Stow, president, Isomass Scientific Inc., isomass.com “A camera crash. In my profession my camera is the main tool. Professional level cameras are designed to be rugged, so when one fell off the tripod complete with my most expensive lens, it was unexpected. It wasn’t so much the cost of replacing the gear as I have great insurance — it was the scramble to line up temporary gear so sessions could continue.” Mark Laurie, owner, Inner Spirit Photography, innerspiritphoto.com “Accounting and bookkeeping is an expense that often goes overlooked. It can be quite expensive if you haven’t kept on top of things and have to hire a company to get you caught up. It can also be expensive if you don’t hire the right accountant.” Christopher Darryl, president, Jujube Business Builders Inc., jujubebusinessbuilders.com “This was the year we went through the dreaded GST audit. The auditor was pleasant but the end result was not. Thankfully we had set money aside for just such a contingency. Keeping a reserve fund for the unexpected is important.” Dale Macdonald, director, The Knee Clinic, kneeclinic.ca “Time is always an unexpected expense. You can often forecast the types of expenses you’ll come acro especially when starting a new business, but more often than not you’re blindsided by a lack of time or by underestimating a project. Consider opportunity costs and always give yourself breathing room between tasks.” Nathan Boysis, owner, WestMaids Cleaning Services, westmaids.com “I’m a solo operator so my expenses are generally the same from month to month. Where I have the most issues is the unexpected cost of a good opportunity. Many times the cost of taking advantage of a great, but last minute proposition is prohibitive and I have to consider turning it down as the upfront cash required will be too much for my current income stream.” Neil Zeller, owner, Neil Zeller Photography, neilzellerphotography.com
For more answers, head over to calgaryherald.com/capitalideas.