Small businesses are struggling with the burden of rising overheads, as utility costs made a record increase over the past 12 months.
However, new research has revealed that small firms are missing a chance to reduce overheads by not ‘shopping around’ for the best deals.
The average utility costs for UK small businesses have risen by a record 9.8% in the past 12 months. The highest increase has been for gas prices, which have risen 91% on average since June 2003, closely followed by electricity at 81%.
However, the research by YouGov discovered that a key area in which small businesses could save money is telephone and internet costs.
Overheads in this area are considerable, with 61% of small businesses paying up to £300 per month on landline bills and over half paying £400 per month on mobile phone bills.
The majority of respondents already had a broadband connection, but had not considered using it to create a cheaper telephony solution.
Many respondents, some 26%, have not changed their telephony set up because they preferred to stick with what ‘seems the most obvious or easiest’ choice.
With rising utility costs however, this could be costing businesses dearly, according to Kerry Ritz, managing director of internet phone company Vonage UK.
“Regular supplier reviews as opposed to the current apparent inertia would help small businesses defuse this ticking time bomb and expose the huge savings on offer if they look to get the most out of what they already have,” explained Ritz.
© Crimson Business Ltd. 2006