Lloyd’s Bank recently stated that the average cost of starting a small business is around £12,000. This figure does not include small businesses that are home based.
While £12,000 is a large sum of money to start a small business, there are often additional running costs involved in business. Many business owners are not aware of these and this is why so many businesses fail within the first 3 years of business.
We run 1-2-1 self assessments with our clients. This is a chance for us both to look at the business and identify the costs within the business. Every business will have running costs, yet every business will have different running costs. Through a self assessment 1-2-1 we can identify these costs so, as a business owner, you are prepared for them.
There will be specific expenses for different businesses. However the most common business expenses will be the cost of the physical premise whether this is an office, shop or other business premises. There will then be the gas, electricity, water and telecoms charges. You will also need to consider the costs of the internet, your business website, hosting for your website, email hosting and similar.
Business owners will sometimes forget the lease agreements or repayments for larger machinery or loans. In some cases the costs of industry specific licences, memberships and insurances will be forgotten about as a cost in the business. You also need to remember the costs involved in hiring an accountant, outsourcing marketing or admin for example.
We would recommend that you take into account those hidden costs, last minute emergencies and unexpected costs too. These can be things like a break-in, lost or stolen items, price increases from suppliers and similar.
During our 1-2-1 self assessments we will also find there are costs in the business that have been forgotten about but are no longer needed. For example, you may still be paying bank charges for services that are no longer requires. Perhaps you are insuring a piece of equipment that is no longer used, or you have underused equipment? With your accountant you can help find these hidden costs and either remove or reduce them.
If you are unsure of the costs in your business, then why not contact us to book a 1-2-1 self assessment? You’ll be surprised just how much it can help focus you on your business.
Get in touch today and let use see how we can help:
Phone – 07874 076599