Secret Startup Expenses Not Be Be Surprised About

hidden costs starting a business surprise startup expenses

Understanding the surprise costs involved in starting a new business is obviously extremely important. In this bootstrapping business blog article, we take a look at some of the secret surprise costs that a startup will face. 

It Is Important To Value Your Staff 

Building a team (even if it is a small one) and team morale is crucial, particularly in the early stages of a business venture. Building your team of new staff members can often be difficult as nobody knows anyone else, and relationships are new. Therefore, when employees are working hard and delivering results, it’s important to show them respect and appreciation, to minimize employee turnover, which can be crippling. You want your labor turnover to stay low so you do not have to repeatedly pay for the training of new employees and payroll additions

Consider boosting morale within the team with, for example, an employee of the month initiatives or other recognition opportunities. Or maybe setting aside funds for workplace socials, which are a great way to get everyone in the business interacting. You can pick up great wine gift sets to purchase from Naked Winery to help break the ice and facilitate socialization. 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. 

Additionally, it is also important that continuous training is given to staff to help your business to try and stay ahead of competitors. As well as keeping staff engaged, training shows that you want to invest in your employees, and help them to stay on top of their workload and total targets. 

Gas And Electricity Bills Can Make A Dent 

Small businesses use an average of 7,500 kWh of electricity per year, with a total bill of £1,000. Moving up to a small-medium sized business and their electrical needs, they would pay £2,000 annually, for around 15,000 kWh of power. A medium sized business is likely to pay £3,000 (25,000 kWh), whereas a large industrial business will more than often pay for 60,000 kWh, which equates to about £7,500 per year. 

And what if your business uses a gas connection? You’re likely to use 10,000 kWh per year with a total average bill of £400 within a small business, 25,000 kWh and a total bill of £850 in a medium-sized business, and 45,000 kWh with a total bill of £1,500 in larger businesses. Your startup could certainly use some 1 ounce gold coins from to help fund those expenses.

It usually takes a while for any startup to begin to make profits, so paying over the odds for your gas and electricity can have a real impact on any fledgling business. It’s crucial then that you ensure you find the right business fuel contracts to keep costs down and profits maximized. 

Have A Modern Business Model 

No business operates without the threat of 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. If you still need a competitive edge of feel like you are stuck in a slump, work with Optimistic Brain to help you gain your fire back. 

Being efficient is key to a fledgling business. 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. 

Company Cost Conclusion

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 lean startup business with the competitive edge that it needs. 

I hope you enjoyed this blog post about how to prepare for hidden costs of starting a business such as energy and gas contracts.

Interested in more articles about hidden startup costs to plan for?

Read Related Resources:

The Hidden Costs Of Hiring Staff

Hidden Costs Of Launching A Startup

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