Many SMEs believe they are keeping overhead costs down, whereas in fact with better managed, more effective cost management, overheads could be reduced much further, according to research from Make It Cheaper.
Two thirds of SMEs surveyed were confident that their cost base was ‘lean’, but with overheads having risen so much in the last six months, owners may be surprised at how much they could save if they sought, or allowed an expert to seek out, the best deals.
SME owners were reported to ‘shop like consumers’ when it comes to business purchases whilst not taking advantage of bulk buying opportunities, as well as being ill-informed as to energy contract terms and conditions.
Further issues highlighted by the survey included 28% of SME owners reporting that they only spend one hour a week on cost management, as a lack of time was cited as a major factor reducing time SME owners could spend looking for the best deals.
With the expensive costs of overheads, and prices only likely to increase further in the short term, it is essential that poor commercial behaviours are minimised before they begin to impact on profitability. Now is the perfect time for your SME to reduce its costs and look after the pennies, to ensure you stay in shape in a difficult economic period.