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Which hidden costs should you be aware of when starting a new venture?

Starting a business is expensive – but it tends to come as a shock to budding entrepreneurs. Jamie Roberts; Senior Copywriter at Media Works exposes three hidden costs to be aware of.

 

If you underestimate your expenditure as a new business, you may be doomed from the start. It’s crucial that you understand exactly what it will take to be successful and plan accordingly. This will be a lot easier if you are aware of these three hidden costs.

Show your staff the appreciation they deserve

One thing that’s guaranteed when you’re setting up a new business is that there’ll be new faces coming on board as the company grows. It’s vital that you take the time to get to know all your members of staff. This will help reiterate your opinion that your company is a great place to work and go a long way in making sure they are happy in the workplace.

Also, if they’re delivering the results you are striving for, make sure you reward them. Everything from monthly incentives to employee initiatives may cost the business, but a happy workforce is invaluable. It’s certainly worthwhile organising social events too, so that your employees can bond and keep morale high. If your staff notice you are acknowledging their efforts, they are far more likely to continue working hard with a positive attitude.

Aside from incentives, don’t forget to offer your staff members the opportunity to learn new skills. Why not send them on training courses on behalf of the company? This can keep them engaged and motivated while offering them a sense of importance.

Control your gas and electricity bills

A micro business that’s based in the UK will use on average 7,500 kWh of electricity each year and will be billed £1,062 as a result, according to data compiled by BusinessEnergy. Small businesses will fork out approximately £2,038 for using 15,000 kWh, while medium-sized business will go through 25,000 kWh at a cost of £3,146. Industrial businesses are likely to be charged £7,346 for using 60,000 kWh.

On top of this, small businesses with gas connections use 10,000 kWh annually on average, costing £430. That figure rises to 25,000 kWh at a cost of £856 if they are a medium-sized business and a total bill of £1,424 for 45,000 kWh if they are a larger business. With these figures in mind, it’s easy to see how gas and electricity can be a huge expense for companies across the board.

Make sure you take the time to shop around to receive the best deals for your energy when you first set up your business. Energy suppliers, such as Flogas, for instance, offer a range of competitive prices and reliable gas mains which can help save money on gas bills.  Shopping around is key!

Stay current

Business is a very savage battleground. New businesses come, and new businesses go, but by making sure your team is using the most up-to-date technology, you can win the first tug of war. If your technology is out of date, chances are you will be losing vital productivity time, which in turn will affect morale.

You must make sure you listen to your employees. If they have an idea that could help the business move forward, listen to them. Times are changing and you won’t know everything, no matter what you think.

If, for example, a colleague thinks you’ll benefit from carrying out tasks on the move, think about investing in several tablet computers with all the necessary software installed. Are you worried about cybercrime? Do stats, including the fact that there were around two million computer misuse offences recorded by the Crime Survey for England and Wales in its latest annual report, scare you? Just add a robust security program to each device and you will be good to go.

Yes, such tasks and implementations will add to your initial costs, but in a results-driven world, if it’s going to make your business hit more targets, then it will surely reap the rewards very quickly.