Hidden Business Costs Can Decimate A New Business…
It’s always a precarious time starting any new business adventure. So, it’s important to be fully aware of your regular expenses and stay on top of any costs that might lead to your business failing. To ensure your venture starts on the right step, together with Flogas, we explore those hidden costs that you may not have originally considered.
Are you clear about your monthly bills?
Few businesses can operate without using energy. According to BusinessEnergy, 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.
Additionally, if your business has a gas connection then 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.
Of course, all businesses want to minimize their costs whilst maximizing profits. Make sure your gas supply, and associated costs, are right for you.
Staff are expensive – don’t lose them!
A business will have many costs, but one of the most expensive is its staff. Recruitment and training can be costly, so you’ll want to retain the good ones. 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 tool for helping to boost staff 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.
Training staff shouldn’t be an afterthought. Look to offer regular staff training to keep them engaged and efficient.
Is your business model the right one?
Unfortunately, all businesses will face ongoing competition. Technology though can help you to implement your business model effectively, helping you to stay on top of orders and ahead of your competitors.
Get your business running efficiently. 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.
The short-term costs of implementing efficient technology can be significant but they are often outweighed by the future long-term benefits and savings that will help your start-up stay competitive.