UK small businesses believe they could save thousands if they weren't juggling too many tasks

A study of 500 SME owners and decision makers found that not having enough time to focus on all their expenditure is costing them nearly £350 each month on average

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 nine per cent they worry their unnecessarily spending is between £1,000 and £3,000 each month.

The survey revealed that 68 per cent of small business owners haven't changed their approach to managing expenditure for a significant amount of time. A quarter 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.

A further 41 per cent of owners have paid for unused subscriptions, 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.

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).

But finding time to do so is a challenge as small business owners believe they're responsible for too many tasks (33 per cent) and it makes it difficult to find time to check on their outgoings.

The study was commissioned by Smart Energy GB, who are collaborating with Mowgli Street Food founder and TV presenter, Nisha Katona MBE. They're sharing The Accuracy P.L. A.N. : Why It Pays To Know Your Bills, a free resource 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."

The emotional toll is significant, with 41 per cent of owners experiencing five or more sleepless nights on average a month, while 28 per cent feel 'stretched' daily.

Interestingly, 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 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.

"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."

Take this quiz to find out how well you manage your experiences.

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.