Stay savvy to the hidden costs of a new business

It goes without saying that awareness of the cost of setting up a new business is a crucial part of its success. A careful plan of a business’ costs when starting up sets a solid foundation for its future work. To make sure you don’t miss any hidden costs, gas suppliers Flogas, bring you this guide of a few hidden costs you may not have considered when planning your business venture.

Upgrade your business plan

Competition is inevitable, no matter what sector you are working in. 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. The latest technology can also help with building efficient processes in the workflow; there are numerous software options available to help make previously paper-based processed much more streamlined.

You can encourage a more efficient workplace by keeping up with the latest technology, such as supplying your employees with tablets and smart devices. 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.


Acknowledge hard work

In the early days of a business, it can be tricky to make sure everyone in a new team feels valued. Therefore, 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 are not having to repeatedly pay for the training of new employees.

The tried and true ‘Employee of the Month’ award, along with social events, are a great way to keep morale high and encourage a sense of loyalty not only to the business, but to each other as colleagues. 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. It also offers staff the opportunity to speak to fellow staff members on other teams that they perhaps do not get to work with on a face-to-face level every day.

Continuous improvement of the business should always be a target, so make sure your staff are given access to continuous training if they feel they need it. Keeping your staff up-to-date and knowledgeable about new processes and skills within the industry will help your business keep pace as the sector evolves.

Gas and electricity bills

In the UK, micro businesses use 7,500 kWh of electricity on average, which costs about £1,062. Moving up to a small business, they would pay £2,038 per year, which is 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.

If you need a gas supply at your business, it might be useful to know the average costs for that too: for a small business, the cost comes to around £430 a year based on an average use of 10,000 kWh. A medium-sized business will pay £856 a year, using 25,000 kWh of power, while a larger business will use 45,000 kWh, which will cost around £1,424.

Starting up a new business is a tricky and admittedly pricey undertaking. Whilst a high initial cost may seem off-putting, and cheaper short-term solutions may look more appealing, the latter tend to have limited lasting power and end up costing more in the long run. Invest in the early days of your business, and you will increase your chances of success.


Author: Editorial Team

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