Small business owners’ concerns around overheads increases

Running costs are an increasing concern for small businesses owners looking to the financial year ahead, according to new research, with 79 per cent owners polled saying they are worried about how they will manage their business’s overheads, up from 48 per cent last year.

While some owners remain focused on growing their businesses (18 per cent) and increasing turnover and profit (21 per cent), others are prioritising tighter cost control and operational upkeep, aiming to keep their businesses stable (19 per cent).

While cost management is front of mind, two fifths say making changes to save costs and updating financial forecasts and budgets still tend to stay on their To Do List longer than they’d like them to (both 40 per cent).

Key worries highlighted in the poll include customers using their business less frequently (19 per cent), having many responsibilities across the business, and the cost of living (both 17 per cent).

Rising energy bills remain a pressing concern, with three quarters of the business owners polled (75 per cent) saying they are finding it difficult to keep on top of their energy costs - up from 40 per cent last year, with over four fifths (81 per cent) reporting they have trained their staff to adopt energy saving behaviours.

Around one in five small business owners say they are planning to review all their business’s overheads and renegotiate better deals with suppliers as part of their efforts to reduce costs (both 21 per cent).

Abi Pope, a deputy-director at Smart Energy GB, who commissioned the research, said: “We can see that most small business owners are continuing to look for practical ways to control their overheads, from reviewing supplier costs to managing their energy use.

“A smart meter can help business owners see exactly how and when they’re using energy, which makes it easier to spot opportunities for making cost savings.

“Smart meters measure a business’s energy use so you get accurate readings, not estimated bills, and that can be a big help with managing cashflow.”

The research also shows a shift towards digital and energy-efficient technologies as business owners look for practical ways to cut costs, with a fifth (21 per cent) saying they are considering automation and getting digital tools, and 32 per cent investing in energy efficient equipment and appliances.

When it comes to managing their energy use and costs, over four in five (86 per cent) polled with a smart meter agree that it was easy to arrange to a smart meter installation.