By David Taylor

Copyright standard

Whether you have just launched your first business or you are a serial entrepreneur with a suite of successful companies behind you, it is important to have a realistic, detailed business plan that breaks down all your outgoings.

From working capital to equipment, office space to legal and administrative fees, there are a raft of essential costs that have to be budgeted for. But behind these overheads there are other drains on your finances which, if overlooked, can impact on your time, energy and bottom line.

Here are five hidden business costs that all companies should be aware of.

Meetings about meetings? Replying to email when a quick call would be easier? The rise of busywork – work done mainly to have something to do rather than work that is truly valuable – can be a real drain on productivity.

To stay ahead of the competition your business needs to be streamlined, efficient and agile. Which means ditching unnecessary meetings and focusing instead on real productivity.

Instilling an atmosphere of busywork is also counterproductive in that it creates resentment among staff, who feel they need to be seen to be doing something, rather than doing the job you actually employed then to do.

Research from employee experience specialists Culture Amp estimates that the cost of replacing a worker starts at 30 per cent of their salary and rises to 200 per cent for the highest performers. From advertising for a replacement to arranging interviews, training and onboarding, the costs to a small or medium-sized enterprise (SME) can be particularly tough.

Creating a positive work environment (see busywork, above), providing opportunities for training and career growth, and encouraging a supportive management team can all help improve staff retention – and keep costs down.

As your business grows, you will need to manage more people and manage more spending. With a business expense management platform such as Wallester Business, you can track company spending, automate expenses and use the mobile app – above and main image – or desktop to get real-time spend control.

The corporate card platform is used by a wide range of business, from SMEs and start-ups to service providers, and within sectors as diverse as media and logistics. It integrates with accounting software such as Xero and Sage, as well as providing comprehensive reporting and analytics features to see exactly where your money is going.

When you sign up to the free plan, you get 300 virtual and unlimited physical Visa prepaid cards which you can instantly issue to your teams.

Some business accounts require a monthly flat fee. Lloyds and Barclays, for example, have no fee for the first 12 months, but an £8.50 monthly charge after that.

Declined transactions, account suspensions and suspicious payment flags can affect any business – advertising platforms such as Google Ads or TikTok will usually pause your campaigns immediately.

Monitor your company balance regularly, use a dedicated card for ad spend and ensure your billing details are up to date. Surprise overseas charges can also eat into profit. Wallester’s prepaid card can be used in more than 180 countries and in over 150 currencies, so you can pay suppliers or freelancers in their own currency, avoiding hefty exchange fees.

When you start a business, your aim is to get people to buy your product or use your service. Developing a relationship with these customers is key to scaling your business – use feedback from market research and customer relationship management (CRM) systems to get to really know your client base. And keep that updated.

Don’t get bogged down by admin, be open to innovation and be prepared to pivot to keep ahead of the competition. Investing in the right technology is vital for scaling SMEs to streamline operations and enhance customer engagement. This will also free up valuable time for you to do what you set out to do in the first place – build your business, win new clients and thrive.

Start managing your business expenses the smart way. Sign up today at wallester.com