InvoicHidden Business Costs to Consider When Starting a New Venture

If you underestimate the costs that you’ll have to absorb as new business, this could lead to premature business failure. It’s important to understand and plan for exactly what it is that will make your business successful. Fortunately, your awareness of these three hidden business costs should go a long way in helping you get your venture going on the right foot.

Keep your gas and electricity bills in control

A micro business based in the UK will use on average 7,500 kWh of electricity per year and face a total bill of £1,062 as a result, according to data compiled by BusinessEnergy. These figures 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.

In addition 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, makes it clear that gas and electricity are major expenses for companies across the board.

Consequently, when first setting up your business, you should take the time to shop around so that you may find the best deals for your energy. For example, 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

As you go about setting up your new business, chances are you will be getting to know a lot of new faces during the process of building your team of staff members. To make sure they remain happy and see your company as a great place to work, it’s important that you show your employees your appreciation when they are working hard and delivering the results that you are striving for — even if this does mean added costs for you.

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 – all of these will cost money, however, they are also very likely to boost morale and have employees appreciating their work and doing their jobs with a positive attitude.

Remember to offer staff members the opportunity to go on 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

There’s a huge chance that you’ll be entering into a very fierce arena of competition, as a new business, whatever industry you have your eye on. One way to make sure you survive is equipping your team with the most up-to-date technology available to them so that they can deliver the best results possible.

Should your employees raise a good argument that they will be better served 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? If you’re worried about cybercrime – something which would naturally be evoked when you consider 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 – then adding robust security programs to all of your computer systems should give you peace of mind.

Where initial costs are concerned, such implementations may add to the costs, but if it results in a more effective and efficient workplace then surely the rewards will be reaped quite quickly.