Methods to handle your organization’s money circulation extra effectively
While there is only so much that small businesses can do to encourage more customers during the lockdown, it can help them review their company’s cash flow and manage it more efficiently.
In a July 2020 survey, concerned small business owners, including retailers, hairdressers and home builders, estimated that they had an average of nine weeks before they would be forced to stop trading.
Fortunately, many made it through that time and started trading again, but challenges remain with the second national lockdown in England and similar versions affecting businesses in Scotland and Wales.
Research by Smart Energy UK, which interviewed the owners of 1,000 businesses from companies with fewer than 10 employees, found that owners’ biggest concerns are lack of customers, cash flow issues, and consumer confidence is not going fast enough will return.
Michelle Ovens MBE, Founder of Small Business Britain, has created tips on how to save money, including new technologies like smart meters that can help you find ways to reduce your energy use and save money.
In the study, 56% agreed that a better understanding of their energy usage would give them better control over their business expenses. Energy is the second most common cost that micro businesses value, just after taxes.
Robert Cheesewright, Director of Corporate Affairs at Smart Energy UK, said, “Although micro business owners have forensically addressed their expenses and continue to take some difficult measures to reduce costs, energy is still viewed as a cost that is only possible.
“One easy step that micro businesses can take back in control of their energy bills is to contact their utility to see if they are eligible for a smart meter. This will help them better keep track of their energy and give them the information they need to lower their consumption. In fact, 44% of those who have had one say they highlighted areas of expenses that they were not aware of. “
To find out if a smart meter is an option for your small business, contact your utility or visit https://www.smartenergyGB.org/en
MONEY SAVING AND CASH FLOW TIPS FROM Michelle Ovens FOR SMALL BUSINESSES
1. Forecast of cash flow. To save money, you first need to know where it’s going and when it’s coming in. While there is sophisticated cash flow software out there, it can be just as effective to sit down with a simple spreadsheet to plot various financial scenarios.
2. Access financial support. There is plenty of financial support such as the Government Vacation Program, Bounce Back Loans, and Business Interruption Loans.
3. Lower costs. Two thirds of small businesses have changed their business model as a result of the crisis. Query all of your expenses to see if there are any new ways to save.
4. Browse. If you have a cost to renew, take your time researching offers. You can find discounts through company price comparison sites, partners and affiliates, or even through referral programs offered by other small businesses.
5. Save energy, save money. Energy use is one of the expenses small businesses are most likely to value. A great way to understand how much energy you are using, find ways to lower your consumption and thereby save money, is to install a smart meter. Check with your utility company to find out if your small business is an option for an installation.
6. Negotiate openly. Start a conversation with everyone you can see to see if it’s possible to arrange discounts or manageable payment terms. Talk to your accountant or HMRC about including the latest offers to defer tax payments like sales tax to aid cash flow.
7. Embrace digital and technology. A smart energy meter is a simple piece of technology. Find out about the support you can access through existing digital partners, such as: B. via Google AdE credits for SMEs or the American Express Shop Small offer.
8. Look for support groups. Many business schools offer free support through their networks, especially those that are part of the Small Business Charter. There are also regular free online events on Small Business Britain’s Facebook channels.
About smart meters and the rollout
Britain is committed to a cleaner future – one with zero carbon, zero emissions and less pollution.
To achieve this, our country must fundamentally improve its energy infrastructure, in particular an intelligent energy system must be created. Smart meters, replacing traditional analog meters, are the building blocks of a more reliable, cleaner and more affordable energy infrastructure that enables the UK to better manage energy use, move to the mass consumption of electric vehicles and build a greener economy.
17.3 million smart meters are already installed in households and micro-businesses across the UK. Every household in England, Scotland and Wales can now see
their energy consumption almost in real time, receive accurate bills and do their part for the planet by requesting a smart meter from their energy supplier at no additional cost.
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