Small to Medium-Sized Enterprises Missing Out When It Comes to Saving Money
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Small to Medium-Sized Enterprises Missing Out When It Comes to Saving Money

When it comes to saving money and boosting the bottom line, business owners tend to focus on the obvious – reduce staff numbers, minimise operations, scale back growth plans, and so on. However, for those that don’t want to take such drastic measures, there are many smaller ways to make significant savings.

For example, most SME owners don’t stop to think about how much their utilities are costing them every month or quarter. In fact, they spend a lot of money on energy while spending a lot of energy looking elsewhere for savings. One day they have a ‘lightbulb moment’ and realise that using an energy comparison site can save them hundreds or even thousands of pounds a year. Eureka!

Common Misconceptions about Energy Comparison Sites

Up to 7 out of 10 SMEs in the UK do not take advantage of energy comparison sites, thereby wasting precious financial resources over their gas and electricity bills. One reason for this, according to research by energy comparison site, Love Energy Savings, is that many SMEs believe these sites charge a fee for their services – although they don’t! Businesses also worry that switching providers could risk leaving their business without power –although it won’t! Such myths are costing small business owners dearly.

So, where’s the catch? In fact, there isn’t one. Energy comparison sites make their money by negotiating an incentive directly with the energy supplier. The customer should never have to pay for the privilege of a comparison, a discounted rate or switching to a new energy tariff. While there are a lot of comparison sites out there, it’s better to use a site that specialises in the gas and electricity sector rather than a generic service without specialist knowledge. An excellent tip we feel at saving money this.

Using an energy comparison site to switch suppliers won’t leave you in the dark, either. You’ll never lose your electricity or gas supply during a switchover because all suppliers use the same cables, wires and connections. Only the supply itself changes. So, regardless of your tariff or your package supplier, your business will always remain up and profitably running.

Energy Sector Changes

Most companies know that competition is healthy for business and good for consumers who are looking at saving money. These days, there’s more choice than ever in the gas and electricity sector, thanks to a growing number of smaller energy suppliers. The big six suppliers are also under investigation from the Competition and Markets Authority (CMA) after pressure from energy watchdog Ofgem and consumer groups. This could lead to SSE, British Gas and other big energy suppliers being broken up amid complaints they are making vast profits at the expense of consumers and without meeting customer expectations.

There’s no denying that small businesses have seen steep increases in their energy bills in recent years. That’s why it’s even more important for businesses who are looking at saving money to shop around for the best available deals. The energy market will change rapidly over the next few years with the roll-out of smart meters, electricity market reforms and closer integration with European energy markets. All this is good news for small businesses trying to keep overheads low in order to boost profits.

Whether you want to show off your green credentials by opting for an eco-friendly energy supplier or just want a no-nonsense fixed rate tariff that can be easily managed online, using an energy comparison site is one of the quickest ways for SMEs to make big savings that can boost their bottom line.