Small business owners are losing an average of £4,000 each year because they don’t have enough time to manage their outgoings and expenses, new research has revealed.
A survey of 500 small business owners found that they typically lose almost £350 each month in potentially avoidable costs due to a lack of time to focus on all their expenses.
However, when it comes to managing your essential bills, there are some simple steps you can take to save money and make things easier, as two business owners tell us below.
Running out of time: small businesses say they are losing almost £350 every month on average due to lack of time
The research, carried out on behalf of Smart Energy GB, showed that being responsible for so many tasks, as well as the volume of administration they had to deal with, were key challenges for owners when it came to staying on top of business finances.
From sorting energy bills to bookkeeping and even shopping for office supplies, we look at the things business owners struggle to find time for and how they can save time and money.
The to-do list. Simple Ways Small Businesses Can Take Control of Their Administrative Tasks
1. Energy costs
According to the research, energy bills are the top concern for business owners, with 43 percent identifying it as a major concern.
It also revealed that more than a quarter of homeowners lack the time to thoroughly review their energy bills.
Whether you own or rent your business premises, you may be eligible for a smart meter. They make it easier to track your energy use and spot ways to reduce waste.
Small businesses with a smart meter can request access to 12 months of data from their energy supplier, which could help with budget management and cost forecasting.
If you rent your premises, you may need to check with your landlord if changes to your meters are permitted within your rental agreement.
‘A smart meter shows how small actions can make a big difference’
Hannah Egerton founded Edgeie Eats, a wholesale bakery and cafe in Bristol in 2022.
Hannah Egerton, founder of Edgeie Eats, Bristol
Eddie Eats has expanded rapidly in just over two years. From baking in her parents’ garage to setting up a bakery in a commercially rented space in Bristol earlier this year.
The company currently supplies bakery products to four universities and twelve cafeterias.
‘As a busy bakery, energy costs are a key consideration due to the amount we use to run our ovens, refrigeration and other equipment.
‘What I value most about our smart meter is the time it saves me, as the meter readings are automatically sent to my supplier, so I don’t have to do them manually.
‘I share smart meter data with my team as it helps me explain how much things cost, and then we identify amongst ourselves where we could change the way we operate to reduce our running costs.
‘Habits, such as turning off lights and ovens when not in use, can add up. A smart meter shows how small actions can make a big difference.
2. Insurance premiums
Nearly a quarter of small business owners believe savings can be achieved by reducing their insurance premiums.
Setting aside some time to compare prices each year can be a huge help. It might also be helpful to use an insurance broker and get a better deal.
Demonstrating that the business is well managed and that safety standards are met can sometimes result in insurers offering lower premiums.
Marketing: Investing time to learn how to sell your business to customers could pay off
3. Supplier costs
Spending some time comparing alternative suppliers or negotiating volume discounts could make a big difference in your profit margins.
4. Technology and software
One in five small business owners wish they had more ability to focus on software and technology.
However, more than half of small businesses are already turning to technology to manage their business finances and boost productivity.
Time-saving technology can range from accounting and billing software to transcription tools or the adoption of biometric payment systems.
5. Marketing and advertising
Marketing your business is crucial to growth, but it can be difficult to prioritize.
Consider outsourcing this work to an expert freelancer to avoid missing out on opportunities to take your business to the next level.
Nisha Katona, TV presenter and founder of Mowgli Street Food and Hannah Egerton, founder of Edgie Eats, a Bristol-based wholesale bakery and cafe.
6. Equipment and maintenance
Not having enough time to properly source or maintain equipment is also something small business owners feel they are neglecting.
Remember that investing in the right equipment can be a long-term cost-saving effort. For example, upgrading to more energy-efficient equipment could lead to greater long-term savings.
7. broadband
Almost one in five small business owners believe they could reduce costs if they had more time to review their broadband.
A quick check on some price comparison sites may take a few minutes, but will result in worthwhile savings.
8. Subscriptions
Small business owners admit to a culture of “forgetting to cancel,” from paying for unused subscriptions to missing renewal notices or forgetting a subscription existed.
Nearly a quarter of small business owners admit they have let subscriptions last longer than necessary.
Another 41 percent have paid for unused subscriptions, and nearly half admit they have overlooked subscriptions because they seem like minor costs.
‘I have fallen into the trap of leaving subscriptions open’
Jenny Jervis, owner of Vibes Yoga Studio, opened her yoga and wellness business with a cafe, in January 2023.
“The financial pressures of running a small business can certainly take their toll,” Jervis says.
Jenny Jervis, owner of Vibes Yoga Studio, Cardiff
‘When the cafe was open to the public, my expenses were almost as much as my income and I was constantly stressed. Cost management remains a huge time gap.
To manage its business expenses, Jervis relies on a combination of manual tracking and automated reminders.
“I set reminders on my phone to alert me about upcoming contract renewals or supplier changes,” he says.
“But tasks like checking mobile phone rates, insurance policies or loan interest rates are often relegated to the background – something always seems more urgent.
‘I have fallen into the trap of leaving active subscriptions when I should have canceled them. I signed up for a subscription that offered a free first year, only to forget about it and receive a fee later.
It’s one of those expenses that goes unnoticed when you’re juggling so many things at once.
“Scheduling time to periodically review my business expenses is one area I know I can improve to ensure the long-term success of the business.”
Cost Saving Tips for Small Business Owners
Nisha Katona MBE, founder of Mowgli Street Food and TV presenter, has teamed up with Smart Energy GB to offer more advice to help small businesses control costs.
1. Set clear goals for financial success
“Whether your goal is to increase profits or reduce costs, setting clear goals gives you a roadmap to success,” says Katona.
‘Keep 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. Install a smart meter
Katona says: “Data from smart meters can help you have more control over your business’s energy spending and help you monitor energy usage and identify where you can save costs.”
Get in the habit: Simple things like remembering to turn off the lights can make a big difference in your bills.
3. Promote energy saving habits
“Implement simple energy-saving practices, such as setting timers on lights and turning off appliances to avoid wasting energy when not in use,” adds Katona.
‘At Mowgli Street Food we started arriving a little later in the morning, which saved energy by reducing the hours we spent in the kitchen with the lights on and ovens on.
“Keeping vents and equipment clean ensures they operate efficiently.”
4. Educate your team
“Teach your team good energy habits,” says Katona. ‘It is important that they agree with your energy saving measures and understand the cost of energy and how even small changes in behavior can make a big difference to the energy bill. They might have their own ideas too.’
5. Invest in energy efficient equipment
Katona adds: ‘While the initial investment may be higher, upgrading to energy efficient equipment can result in substantial long-term savings.
“These appliances consume less energy, reduce operating costs and contribute to a smaller environmental footprint.”
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