Why SMEs are right to be concerned over energy costs
Small businesses in the UK have expressed concerns regarding the running costs of their business, listing the price of electricity as their primary fear in a recent survey.
The poll from the Citizens Advice Bureau saw the issue of energy top the list of concerns, with 46% admitting they faced anxiety when it came to bills.
Given the importance of electricity to many businesses, finding the best solutions can be vital to the longevity of the firm in question.
This is emphasised further by the fact that companies placed it as a more pressing concern than having access to finance – another important aspect of business.
Businesses who constantly overpay for their energy or who face cashflow issues could face potential corporate insolvency procedures in the long-term if action is not taken.
Switching energy providers could be one solution, while acting as quickly as possible where more serious financial issues are concerned could make all the difference.
The investigation into energy firms in the UK could yield positive results for some businesses if it opens more opportunities for them.
However, it would seem that greater support is still required if businesses are able to fully benefit from the best options on the market.
The Confederation of British Industry has already called on the government to do more, although it did say that small firms need to work on being as efficient as possible.
Being more efficient can help to drag costs down, while it can also have environmental benefits – an important issue with many companies trying to focus on sustainability.
Freeing up funds can also aid a business in other ways, as that finance can be spent on other more pressing aspects, such as advertising, marketing or even research and development.
These are all important parts of a business when it comes to growth, so tightening a grip on unnecessary costs is certainly a good place to start.
Getting a fair price for energy should be possible for all companies – regardless of size – and it is for this reason that SMEs are right to be concerned about prices.
By Phil Smith