Keeping costs low for start-up businesses

For a new business to be successful, a business must plan and understand the costs involved in a new start-up venture. Flogas explores the hidden costs that start-up businesses can be caught out by and how to avoid them.

Gas and electricity bills

BusinessEnergy suggests that micro businesses 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.

Additionally, 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 a larger business.

Therefore, it is crucial to find the right gas supply for your business to minimise costs and maximise profits.

Appreciating your staff

It is vital to show employees respect and appreciation when they are working hard, so that your labour turnover stays low and you do not have to repeatedly pay for the training of new employees.

Moreover, initiatives such as employee of the month and setting aside funds for workplace socials can boost morale and bring staff members together. To ensure that employees remain engaged while at work, it’s important to provide continuous training so that they can always stay on top of their targets and workload.

The use of technology

To stay on top of order and ahead of your competitors you can use technology to implement your business model effectively. More efficient practices can be encouraged in the workplace and by adding robust security measures alongside these technologies, you will avoid becoming a victim of fraud.

Although these technologies will cost, the long-term benefits and efficiency savings are crucial to the start-up of a business.