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Hidden business costs to be aware of when starting a venture

Before you launch your exciting, new business, you must consider all the costs involved with your venture. You don’t want to be in over your head within the first few months.

Here, we explore the typical costs of starting a company to help you stay a step ahead and increase your chances of success!

Energy

So, what prices are we looking at when it comes to commercial energy use? UK micro businesses use 7,500 kWh of electricity on average. This racks up a cost of about £1,062!On the other hand, a small business would pay £2,038 per year, which is around 15,000 kWh of power, while a mid-size business is likely to pay £3,146 (25,000 kWh) and a large business will more than often pay for 60,000 kWh — £7,346 per year.

Going for a gas installation service or already decided on this type of energy? In that case, a small business will use 10,000 kWh per year, which comes to about £430 annually. For a medium-sized business, owners will pay £856 a year, using 25,000 kWh of power, while those in charge of larger businesses will use 45,000 kWh and fork out around £1,424. Clearly, getting your energy provider right is essential!

Staff

Hiring staff is an integral part of a new business, and it’s important to ensure that each member of your team feels rewarded and valued. Therefore, when employees are working hard and delivering results, it’s vital to show them respect and appreciation. That way,your labour turnover stays low and you reduce the amount of times you need to pay for training new employees.

Schedule work nights out, corporate days, bake days, quizzes and employee-of-the-month initiatives to keep morale high within the workplace. 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.

Also, don’t fall behind on training, despite the added cost — employees want to keep learning and improving! In the long run, paying for external training will help you encourage more knowledgeable, better performing staff.

Business model

All industries come with 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.

Make your workplace more efficient with tablets and portable devices for your staff to use and spend money on fighting cyber threats. 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.

Investing in the right parts of starting a new business will help you avoid frittering away money. So, plan what is important to your company and spend accordingly.

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Startup-Buzz Team

Startup-Buzz Team

Startup-buzz Team is a collaborative group of entrepreneurs, researchers, writers and experienced professionals. Tied up together to bring the latest Startup Buzz going around the globe.

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