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Plan costs in your venture

The hidden costs of new business ventures

flogasBeing unable to understand the costs that you’ll face as a new business may lead to a business failing prematurely.

In order to be successful, a business must plan and understand the costs involved in a new start-up venture.

To ensure that your venture starts on the right step, together with Flogas, we explore those hidden costs that you may not have originally considered.

Unaccounted gas and electricity bills

Suggested by BusinessEnergy, micro businesses that are based 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.

What also should be considered, is that if your business 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.

To avoid being stung by overpriced gas and electricity prices – make sure you find the right gas supply for your business, so that you can keep costs down and maximise profits.

Show your staff that they’re valued

As you build up your team of new staff members, setting up a new business can often be difficult as nobody knows anyone else. 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 do not have to repeatedly pay for the training of new employees.

To help boost morale within the team 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.

To make sure employees remain engaged while they are at work, it’s important that continuous training is given so that they can always stay on top of their targets and workload.

Make sure your business model remains current

No matter what industry you’re trading your goods or services in, you’re bound to face a lot of 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.

In this way, 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.

Again, although there are costs involved in implementing these technologies in the short-term, the long-term benefits and efficiency savings in terms of cost will 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

This article appears under the terms of the DB Direct service

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