Small businesses are feeling the financial impact of a lack of time to manage their expenses, losing an average of £350 per month, equating to around £4,000 annually, due to insufficient time to review their spending. This issue was highlighted in a study that surveyed 500 SME owners and decision-makers.
Many small business owners admitted to not updating their expense management approach for a significant period, with 68 per cent falling into this category. However, the majority (89 per cent) expressed willingness to adopt a new strategy, while 57 per cent are already turning to technology to streamline their financial processes and enhance productivity.
The research revealed that 26 per cent of SME owners struggle to thoroughly review their energy bills due to time constraints, while 20 per cent wish they had more capacity to focus on software and technology aspects of their business.
Additionally, a prevalent ‘forget-to-cancel’ culture among small business owners leads to automatic renewals of subscriptions, resulting in increased expenses for 24 per cent of respondents. Furthermore, 41 per cent admitted to paying for unused subscriptions, with 39 per cent overlooking renewal notices and 45 per cent missing subscriptions due to their smaller costs.
Smart Energy GB, in collaboration with Nisha Katona MBE, founder of Mowgli Street Food, has developed a free resource called The Accuracy P.L.A.N.: Why It Pays To Know Your Bills to assist small business owners in navigating their business expenses effectively.
Nisha Katona emphasised the importance of closely monitoring bills for business success and shared her experience of using smart meters to understand energy usage better, resulting in significant cost savings for her restaurants.
Energy bills emerged as a top concern for business owners, with 43 per cent expressing worry over them. Despite this, 22 per cent admitted that it had been over a year since they last reviewed their business energy supplier.
The study found that 31 per cent of small business owners believe they could reduce energy costs if they had more time to review them. Other areas where potential savings could be made include insurance premiums (23 per cent) and broadband costs (20 per cent).
Victoria Bacon, Director at Smart Energy GB, highlighted the time pressures and wide-ranging responsibilities faced by small business owners, particularly concerning financial management and operational costs. Installing smart meters was recommended as a solution to help save time and money by providing accurate readings to energy suppliers.
Managing finances can be a significant source of stress for small business owners, with 41 per cent reporting an average of five or more sleepless nights per month due to financial concerns. Implementing simple processes such as monthly expense reviews or comparing supplier costs could help alleviate some of the pressure.
The research also revealed that a third of SME owners believe that implementing simple financial processes could enhance their financial management. The Accuracy P.L.A.N: Why It Pays to Know Your Bills, a free resource for small business owners, offers valuable insights to navigate business expenses more effectively.
Additionally, Nisha Katona shared some top tips for small business owners, including setting clear financial goals, installing smart meters, encouraging energy-saving habits, educating the team on energy efficiency, and investing in energy-efficient equipment to achieve long-term savings and contribute to a smaller environmental footprint.
