It’s a precarious time when you start a new business, so it’s important to be on top of your outgoings and stay aware of any costs that might lead to your venture going under. To ensure your venture starts on the right step, together with Flogas, we explore those hidden costs that you may not have originally considered.
Keep an eye on your bills
Any business will use energy, so you’ll need to make sure you know what charges you’re incurring. According to Business Energy, micro businesses in the UK use an average of 7,500 kWh of electricity annually, with a bill of £1,062. Moving up to a small business, they would pay £2,038 per year, for around 15,000 kWh of power. A medium sized business is likely to pay £3,146 (25,000 kWh), whereas a large industrial business will more than often pay for 60,000 kWh, which equates to £7,346 per year.
Have you factored in how much your gas connection is taking out of your profits? You’re likely to use 10,000 kWh per year with a total average bill of £430 within a small business, 25,000 kWh and a total bill of £856 in a medium-sized business, and 45,000 kWh with a total bill of £1,424 in larger businesses.
Take some time to ensure you have found the right business gas prices. Minimising costs and maximizing profits is vital for any business, particularly a fledgling one.
Staff turnover can be very costly
Staff cost money to recruit and train, so you don’t want to lose them, particularly in the early stages of a business. When employees are working hard and delivering results, it’s important to show them respect and appreciation, so that your labour turnover stays low and you do not have to repeatedly pay for the training of new employees.
Team building exercises are a good way to help keep your staff happy, and there are lots of initiatives out there. To help boost team morale and keep everyone in good spirits, employee of the month initiatives, and setting aside funds for workplace socials are great ideas to get everyone in the business involved. Although there is a cost involved with these types of events, it helps employees bond and get to know each other on a personal level.
Additionally, training should be something that you offer your team regularly, to help keep them engaged and efficient at their role.
Do you have a business model that is up-to-date?
Of course, no business operates in a vacuum, so you’re going to experience competition. However, technology can help you to implement your business model effectively, which will help you to stay on top of orders and ahead of your competitors.
Being efficient is vital for any business that wants to stay at the top of the game. More efficient workplace practices can be utilised; for example, employees can carry out tasks on the move with smart devices and tablets. By adding robust security measures alongside these technologies, you will avoid becoming a victim of the 3.6 million cases of fraud and 2 million cases of computer misuse reported this year.
Remember that the short-term costs of implementing some of these technologies are often outweighed by the long-term benefits and efficiency savings that will help your start-up business with the competitive edge that it needs.
