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The hidden costs of starting up a new business

The team at Flogas explore the hidden costs of starting up a new business, from energy bills through to security...

It’s important to understand the costs that you’ll face when you’re setting up a new business. If you’re unable to may lead to the business failing before it begins. A successful business, requires planning and an understanding of the costs involved in setting one up. To ensure that your business starts on the right step, together with business gas specialist, Flogas, we investigate the hidden costs that you may not have considered.

Unaccounted gas and electricity costs

BusinessEnergy has suggested that micro businesses based in the UK use an average of 7,500 kWh of electricity each year, with a bill of £1,062. Small business would pay £2,038 per year, for around 15,000 kWh of power. A medium based business is likely to pay £3,146, which is 23,000 kWh, and a large industrial business will use up 60,000 kWh, which costs of total of £7,364 per year.

You should also note if your business uses a gas connection, then you’re likely to use 10,000 kWh annually which is cost of £430 within a small business, 25,000 kWh and a total cost of £856 in a medium-sized business, and a large business will likely use 45,000 kWh which is a total cost of £1,424.

In order to avoid being weighed on with overpriced gas and electricity prices, make sure you find the right energy supply for your business, so that you can keep costs down and maximise your revenue.

Show staff value

When you begin building up your team of new staff members, setting up a new business can often be difficult as nobody knows anyone else. So, when employees are working hard and delivering the results, make sure to show them respect and appreciation as it’s important because it will ensure your labour turnover stays low and you do not have to repeatedly pay for training new employees.

You can introduce employee of the month initiatives, and setting aside funds for workplace socials, which you can get everyone involved. This will help boost morale with in the team and keep everyone in good spirits.

To keep employees 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.

Keeping your business model strong

You’re bound to face a lot of competition, regardless of what industry you’re trading your goods or services in, so it’s important to stay within competition. Technology can help you to implement your business model effectively, which will help you stay on top of processes 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.