A ‘lack of time’ is costing the average small business £4,000 every year.
A study of 500 SME owners and decision makers highlighted that not having enough time to focus on all their expenditure is costing them nearly £350 each month on average.
And nine per cent worry they are unnecessarily spending between £1,000 and £3,000 each month.
The survey also revealed 68 per cent of small business owners haven’t changed their approach to managing expenditure for a significant time.
But 89 per cent are open to taking on a new approach, and 57 per cent are embracing new technologies to manage business finances and enhance productivity.
The research found 26 per cent don’t have enough time to give energy bills their full attention, and 20 per cent wish they had more capacity to focus on software and tech.
And a ‘forget-to-cancel’ culture, where a lack of time means regular subscriptions rollover without being reviewed, was another reason why 24 per cent felt they had higher outgoings.
If they had more time to review them, small business owners believe they could save money on energy costs (31 per cent), insurance premiums (23 per cent) and broadband (20 per cent).
The research was commissioned by Smart Energy GB, which is working with Mowgli Street Food founder and TV presenter, Nisha Katona MBE to share The Accuracy P.L.A.N.: Why It Pays To Know Your Bills [https://smart-meters-for-business.smartenergygb.org/accuracy-advantage], a free resource to help small business owners navigate their way through their firm’s expenditure.
Nisha Katona said: “Keeping a close eye on bills is critical to a business’s success.
“When I started my business, I had so much to juggle that I didn’t really put my mind to my energy usage but if I had, I could have saved so much more money.
“Getting smart meters installed in my restaurants helped me, and my team, to better understand our energy usage, which in turn has helped me change the way I run my operations, and have more control over our energy spend.”
An online tool [https://www.oathstudio.com/accuracyadvantagechallenge/] has been created to test how well you’d manage your business finances, including situational based questions around planning, analysing and negotiating.
It comes after the research also found 41 per cent of owners have paid for unused subscriptions, costing the business money.
While 39 per cent missed renewal notices or forgot the subscription existed, with 45 per cent claiming it was of so little value that it was overlooked.
When it comes to keeping on top of business finances, key challenges for small business owners include being responsible for too many tasks (33 per cent) and the volume of admin (31 per cent).
And 30 per cent struggle to ensure employees follow a process to accurately track business spend.
There’s a significant emotional toll for 41 per cent of owners who have five or more sleepless nights on average a month, while 28 per cent are feeling ‘stretched’ daily
Energy bills topped the list of costs that worry owners the most (43 per cent), yet 22 per cent said it’s been more than a year since they reviewed their business energy supplier.
It also emerged a third of those polled believe a simple monthly process would help them manage business costs more effectively, as well as regular comparison checks against other supplier costs (33 per cent) to get the best deal.
Victoria Bacon, director at Smart Energy GB, said: “The research highlights the time pressures and range of responsibilities small business owners have and also, their concerns, especially around managing their finances and running costs.
“One thing owners can do is get a smart meter installed, which can help them save both time and money, smart meters send readings automatically to the energy supplier, putting an end to manual meter readings and estimated bills.
“The data smart meters provide can help owners identify where cost savings could be made and help them have more control over their business’ energy spend, which is good for cashflow and budgets.”
COSTS BUSINESS OWNERS THINK THEY COULD SAVE MONEY ON, IF THEY HAD MORE TIME TO REVIEW THEM
1. Energy costs
2. Insurance premiums
3. Supplier costs
4. Technology and software
5. Marketing and advertising
6. Equipment and maintenance
7. Broadband
8. Professional services e.g. accounting
9. Office supplies
10. Subscriptions
NISHA’S TOP TIPS FOR SMALL BUSINESS OWNERS:
1. Set clear goals for financial success
Whether you’re aiming to increase profits or cut costs, setting clear goals gives you a roadmap for success. Maintain accurate financial records and closely track all your expenses, including energy costs. This will save you time and money in the long run, so you can focus on what really matters – growing your business.
2. Get a smart meter installed
Smart meter data can help give you more control over your business’s energy spend, and help you monitor energy usage and identify where you can make some cost savings.
3. Encourage energy saving habits
Implement simple energy-saving practices like setting timers on lights and turning off appliances to avoid wasting energy when they’re not in use. We started coming in a little later in the morning, which saved energy as we reduced the hours we were in the kitchen with the lights on and the ovens running. Keeping vents and equipment clean ensures they run efficiently.
4. Educate your team
Teach your team good energy habits. It’s important they’re on board with your energy saving measures and understand the cost of energy and how even small changes in behaviour can make a big difference to an energy bill. They may also have their own ideas too.
5. Invest in energy-efficient equipment
While the initial investment may be higher, upgrading to energy-efficient equipment can lead to substantial long-term savings. These appliances consume less energy, reduce operational costs, and contribute to a smaller environmental footprint.