A ‘lack of time’ is costing the average small business £4,000 every year, according to a study of 500 SME owners and decision makers. The research highlighted that not having enough time to focus on all their expenditure is costing them nearly £350 each month on average.
For some nine per cent they worry they are unnecessarily spending between £1,000 and £3,000 each month.
The research found that 26 per cent don’t have enough time to give energy bills their full attention, while 20 per cent wish they had more capacity to focus on software and tech.
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 study was commissioned by Smart Energy GB, who are collaborating with Mowgli Street Food founder and TV presenter, Nisha Katona MBE. They aim to share The Accuracy P.L. A.N.: Why It Pays To Know Your Bills, a free resource designed to help small business owners navigate 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.
“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.”
While energy bills are the primary concern for 43 per cent of owners, 22 per cent admit it’s been over a year since they reviewed their business energy supplier.
When it comes to managing business finances finding time is a challenge as owners are responsible for too many tasks (33 per cent) and struggle with the volume of admin (31 per cent).
Consequently, it is not only cultivating in unnecessary costs but also taking an emotional toll – four in 10 experience five or more sleepless nights on average a month, while 28 per cent feel ‘stretched’ on daily basis.
Interestingly, a third of those surveyed believe a simple monthly process would help them manage business costs more effectively, along with regular comparison checks against other supplier costs (33 per cent) to secure the best deal.
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.”
She added: “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.”
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