While British SME’s may be enjoying a period of ascendancy, the uncertain and often fragile nature of the economy means that such prosperity cannot be sustained indefinitely. With this in mind, more proactive business-owners are striving to capitalise on the existing level of growth, primarily by minimising costs and maximising profit where possible. To achieve this, however, it is imperative that business-owners look out for the hidden costs that can accumulate over time and potentially derail their venture.
3 Hidden and Obscure Business Costs
So what are the hidden and obscure costs of business that can derail even the best laid plans? Consider the following: –
- Business Compliance Costs
While it is one thing to invest in physical and intellectual property for your business, it is quite another to ensure that your venture complies with both domestic and international legislation. This is crucial; however, as even the most innovative business model can fail if it does not meet the requirements of commercial law. All entrepreneurs are required to provide a comfortable and welcoming working environment for their staff, for example, which follows stringent temperature and similar regulations. Ventilation and air flow are also key considerations, so you may need to solicit information from industry experts such as Rocburn Limited.
- Patents and Intellectual Property
In most cases, a great deal of investment is required to design, manufacture and market a viable product. Managing the costs involved with this process can be difficult, however, and force you to lose sights of other important requirements. It is also crucial that you safeguard the intellectual property of your product and design work, so that rivals cannot copy it or use it to their own advantage. Filing a patent application is extremely costly, so be sure to make a contingency plan and allow capital for this endeavour.
- The Creation of a Viable Business Infrastructure
Over time, the ultimate goal must always be to streamline or develop your business model. While it is relatively easy to create a strategy and plot a path towards future growth, however, it is important to remember that this will require significant investment over time. The same principle applies if you intend to create a viable infrastructure that maximises productivity without draining business funds. This will involve tasks such as employing members of staff and providing comprehensive benefits packages, each of which generates a substantial cumulative cost that cannot be ignored.
