The True Costs of Running a Business

Every small business owner knows the reality of cash flow, but how much does it really cost to set up a business and keep it running? We'll take a look at the real numbers behind my businesses and explore some scary statistics about small businesses in the UK. Get the facts and make the best decisions for your own business.

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[Bambotb]

This is a gem channel...God bless for doing this

[simonadams]

I am just in the process of buying a business after being a sole trader for the last two years. It’s exciting and nerve racking at the same time so seeing this kind of information is invaluable.

[Peter-xrgd]

Such a great video James, and perfectly timed for me. You’re such an inspiration mate thank you.

[fullcircle]

Hi James thanks for creating such an open video about your business and highlighting the stats on business size. I love listening to your advise and insight. Thank you Ben 😊

[tiagomelo]

I love your content man. Cheers from Portugal!

[rajmalhotra]

Hi James, another truly incisive, important, informative, intelligent, impressive, interesting and personally both insightful and inspiring and thank you for sharing

[guyhamiltonyt]

Spot on James, not enough companies invest in their people; their biggest asset. That’s due to lack of education, and a too top down heavy corporate shareholder structure and global business psychology, but the thing is, the less people know, the more money the genuine ones like us can make ;) hehe

[richardwomersley]

Cracking Video James! Although I had to double check it was one of yours.
There was no mention of where you get your printing done?

[dharris]

I run a small leisure business in suffolk, everything is going up isn't it. When people moan that the ice cream price has gone up 20p I feel like explaining all this to them

[markraftery]

Great content and insight to your buisness. I wouldn’t put any VAT in to my turnover (turnover vanity profit sanity) also not a fan of EBITDA - you can get a nasty surprise at the end of the year so prefer raw profit and a separate cash flow forecast for the year.

[JanosFeher]

Just a note: VAT is not your cost. VAT is paid by your customers and your business is just a custodian to transfer it to the government.

[richardgordon]

Hi James, really enjoyed your video. I’ve just bought a small business and completely agree with your mindset. Thanks for your video!

[oscarromeo]

Great video James. Don’t even own a business now but love it and entrepreneurship. Thinking of getting back into it and finding your vids super informative and inspirational.

[andyasia]

A lot of businesses "fail" not because of economic failure but simply because the owners cannot be bothered with the hassle and the struggle of running a small business and so they give up, go self employed or work for someone else.

Relentless taxes, ever increasing minimum wages, out of control utility prices, property prices and rents becoming unaffordable, raw material and supply chain cost increases, capital investment cost increases, even something as simple as a van in 2023 costing double the cost of the same van in 2019.

I took a long hard look at our business and stripped out the "turnover for vanity" nonsense and went back to the "profits for sanity" basics with staff numbers down from around 75-100 to 25-30.

I'm sad it won't get to that next level but I want something more on autopilot and as James said, you need to be 20% managing your business and 80% growing your business and for a long time I was 98% managing the business because it was so complicated. Now streamlined and with more to go, it will be a smaller, tighter and more profitable unit but also one which could reach out and expand through acquisition.

[DarrenPeers-cskg]

Another great video. Really enjoy watching these videos. They have inspired me to start the progress forward from being self-employed to creating a business. Keep those videos coming.

[NoNonsenseJohnson]

Makes me sick seeing those VAT and business rates figures James. You are a better man than me I’d pull every move in the book to swerve them.

[pd]

Great video. I used to be one of those 0 employee businesses. Life was good. And then... IR35.... 😅

[jamesellis]

VAT should be at 10% but for ALL businesses regardless of size, then this would be a level playing field for all. Example:- If you have a garage charging £40per hour it would be that if they were under £85k but over this and you are paying £40 + 20% (£48ph). At first glance most people in this day and age will use the £40ph garage. Just make it 10% across the field. Businesses & customers both get the benefit imo. Based on James's stats I'm sure it would bring in a similar amount in VAT.

[elizabethward]

I wonder if the numbers of micro businesses are distorted because until IR35 was implemented many employees just used a limited Co for each employee. Also the gig economy encourages it.
Very useful to see the figures broken down, just out of interest do you employ an FD to Nimber crunch? I think this would really useful for us too, especially as we grow through the 20 or so employee stage.

[Drew]

Great video James.

The number of companies that you showed, is that just Ltd companies? Or does that include self employed, partnerships etc?