What Are The Hidden Business Costs That Threaten New Ventures?

What Are The Hidden Business Costs That Threaten New Ventures?

The early stages of a new business is usually a precarious time; so it’s important to be aware of the costs that could lead to any new business failing before it’s got off the ground.  To ensure your venture starts on the right step, together with Flogas, we explore those hidden costs that you may not have originally considered.

Keeping you bills down

It’s crucial to take into account the energy costs that your business can incur.  BusinessEnergy have suggested that UK micro businesses 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.

If your business also uses 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.

Making sure you find the right gas supply for your business, in order to minimize costs and maximize profits is vital for a fledgling business.

Value your staff to avoid turnover

Usually with any new business, especially one that’s growing quickly, staff recruitment can soar, sometimes meaning a workplace full of people who don’t really know each other.  Therefore, when employees are working hard and delivering results, it’s important to show them respect and appreciation, so that your labor turnover stays low and you do not have to repeatedly pay for the training of new employees.

There are lots of exercises out there that you can use for team building.  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.

Remember too that, if possible, training should be a continuous element at your workplace to keep employees engaged, and efficient.

Is your business model up-to-date?

It’s rare for any business not to have fierce competition.  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.

More efficient practices can be encouraged in the workplace; 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.

Of course, there are short term costs involved in implementing these technologies, but the long-term benefits and efficiency savings will help to provide your start-up business with the competitive edge that it needs.

Sources:

http://www.businessenergy.com/electricity/

http://www.businessenergy.com/gas/

http://www.bbc.co.uk/news/uk-38675683  

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