Top 4 Costs of Running a Business

Business Graphs, Glasses and pens

Running a business isn’t cheap. There are a number of costs associated with the running of a business and it’s important to keep them all under control. Here are the top 4 costs that all business owners need to keep an eye on.

Commercial space and utilities 

Working from home may be fine for freelancers but as businesses grow, a space for collaboration becomes a necessity. Commercial premises and the utility bills associated with them, make up a large part of company expenditure.

It’s worth considering if your office space is fit for purpose. If your office space isn’t catering to your needs then it’s essentially wasted spend. You should ask:

  • Is your office an adequate size? Do you have too much excess space? Or perhaps things are starting to feel a little cramped?
  •  Are you overpaying on your utility bills? If you allow your bills to auto-renew each year it’s highly likely that you’re paying over the odds for your gas, electricity and other utility bills.

Business Insurance 

Regardless of the nature of your business, business insurance will likely be one of your biggest outgoings. At very least, you will need to have both public liability coverage and employer liability. It’s also recommended to take out insurance on property, negligence, illness and injuries.

It’s not just about getting the cheapest policy though. It’s just as important to get the right policy. We strongly recommend speaking with an insurance specialist because protecting your business is extremely important. Of course, we would like to urge you to speak to one of our insurance specialists but even if you don’t, please ensure you speak to a specialist. We have seen first-hand the consequences of under-insurance.

Business Rates

As a business, you will understand the significant cost of business rates. It’s a huge amount of money to have to pay out each year but hardy anyone questions their business rates! You are entitled to question how the rates are calculated and even make a claim for a reduction. Extortionate business rates are one of the main reasons businesses collapse. There are many reasons for a reduction in business rates, these include:

  • Noise issues
  • Access impediments
  • Loss of parking facilities
  • Construction works
  • Damage to property

Card Merchant Fees

Card merchants charge you to use their terminal, and they will also charge you a fee for each payment plus an insurance fee too. These costs can quite quickly stack up.

Enabling customers to buy your products or services with a credit card can be a great way to get customers in and spending, especially at the moment with the majority of stores only accepting card payment. It’s important to question the fees you’re being charged though. You should expect to pay roughly 3% of all total charges in vendor fees. Every credit card company charges a different amount for a vendors fee, therefore, it’s worth finding a vendor that best suits your business.


We are able to help you with all the topics raised in this blog. To arrange a free consultation, please contact us.