Real People. Real Stories. Real Business.
Chris Bell

Hidden Business Costs to be Mindful of When Starting a New Venture

An underestimation of the costs you’ll need to absorb as part of a new business venture can lead to premature business failure. It’s of great importance to gain a full understanding of exactly what it would take to be successful. Fortunately though, there are three hidden business costs which if you’re aware of them, you can get started on the right footing.

Keep your gas and electricity bills in control

In the UK, a micro business will use 7,500 kWh of electricity per year and face a total bill of £1,062 as a result, on average, according to data compiled by BusinessEnergy. These figures can go all the way up to 15,000 kWh and a £2,038 bill for a small business, 25,000 kWh and a £3,146 bill for a medium-sized business and 60,000 kWh and a £7,346 bill for an industrial business.

It soon becomes clear that gas and electricity are major expenses for companies across the board when you add to this the fact that organisations with gas connections typically use 10,000 kWh per year with a total average bill of £430 if they are a small business, 25,000 kWh and a total bill of £856 if they are a medium-sized business and 45,000 kWh and a total bill of £1,424 if they are a larger business.

As an example of how you should consequently take the time to shop around for the best deals when first setting up your business, Flogas, offer a competitively priced and reliable gas supply to a variety of companies and can help them save up to 45 per cent on their gas spending alone.

Ensure you show your staff you appreciate them

While building your new business, the likelihood is that you’ll be getting to know a lot of new faces as you build your team of staff members. Even if this would mean added costs for you, it’s important to demonstrate your appreciation to your employees when they are working hard and delivering the results that you are striving for, to ensure they remain happy and see your company as a great place to work.

While everything from prizes for employee of the month initiatives, to setting aside budgets so that teams can bond outside of the workplace with a meal or social gathering will cost money, these initiatives are also very likely to boost morale and have employees appreciating their work and doing their jobs with a positive attitude.

Remember to extend to your staff members the opportunity to attend training courses on behalf of the company as well, as doing so can help maintain high levels of motivation and engagement.

Make sure you get with the times

Whatever industry you’ll be entering into, there’s a huge chance that you’ll be entering into a very fierce arena of competition, as a new business. A good way of ensuring your business survives is making sure your team has the most up-to-date technology available to them to deliver the best results possible.

If your employees come to you raising good arguments concerning issues such as how much better-served they’d be in carrying out certain tasks on the move, why not consider an investment in a collection of tablet computers installed with all the necessary software, for instance? Adding robust security programs to all your computer systems should give you peace of mind if you’re worried about cybercrime when you hear of stats such as that there were around 3.6 million cases of fraud and 2 million computer misuse offences recorded by the Crime Survey for England and Wales in its latest annual report.

Although such implementations can add to the initial costs, if it results in a more efficient and effective workplace then surely you will very quickly reap the rewards.