A study involving 500 SME owners and decision makers revealed that insufficient time to scrutinise all their expenses is costing them nearly £350 each month on average. Furthermore, 9% fear they are unnecessarily shelling out between £1,000 and £3,000 each month.
The survey also uncovered that a staggering 68% of small business owners haven’t altered their approach to managing expenditure for a significant period of time.
Despite this, an impressive 89% are open to adopting a new approach, with 57% welcoming new technologies to manage business finances and boost productivity.
The research discovered that 26% simply don’t have enough time to give energy bills their full attention, while 20% wish they had more capacity to focus on software and tech.
Additionally, a ‘forget-to-cancel’ culture, where a lack of time results in regular subscriptions rolling over without being reviewed, was another reason why 24% felt their outgoings were higher.
If they had more time to review them, small business owners believe they could save money on energy costs (31%), insurance premiums (23%) and broadband (20%).
The research was commissioned by Smart Energy GB, who are collaborating 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, a free resource to assist small business owners navigate their way through their firm’s expenditure.
Nisha Katona stated: “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.”
(Image: PinPep)
“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.”
This comes after research revealed that 41% of business owners have wasted money on unused subscriptions. Almost four in 10 missed renewal notices or forgot about their subscriptions, while 45% deemed it too insignificant to bother with.
Additionally, 30% struggle to ensure employees adhere to procedures for accurately tracking business expenses.
The financial burden takes a significant emotional toll, with 41% of owners experiencing an average of five or more sleepless nights per month, and 28% feeling overwhelmed on a daily basis.
Soaring energy bills remain the top concern for business owners, with 43% citing them as their biggest worry, yet more than a fifth (22%) admit it’s been over a year since they last reviewed their energy supplier.
Victoria Bacon, director at Smart Energy GB, commented: “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.”
Test how will you manage your expenses with a quiz.
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.