A Summary of The Spring Budget For Small Businesses

As the colder temperatures set in and talks of snow begin to flutter around offices and homes, winter has certainly arrived in the UK. Unfortunately the usual excitement of Christmas, New Year, and winter markets has been clouded by the current cost of living crisis and the rise in energy costs. As both households and businesses face rising bills, now is a particularly difficult time and one that requires people to take a more cautious approach to spending.  If you are a small business owner, we are sure you will certainly be feeling the pinch. And with the energy crisis set to continue into 2023, budgeting is now more essential than ever. In this latest blog, we will be offering our support to small businesses who are looking to budget for the rising costs of electricity and gas.  Creating a budget for your small business Budgeting is a vital part or running any business, and when you run a small business you’ll know that every penny counts. A budget should incorporate details about all the costs your business will incur over the next period. When creating a budget you need realistic figures, so taking into account what you have spent previously will be most beneficial.  To know how to budget with your rising energy bills in mind, it would be useful to use the past few energy bills you have received. You may also want to contact your energy supplier to discuss your direct debit payments and agree an amount that works for your business. This way you can plan for the next few months. Your budget can then be altered to review ‘what if’ scenarios, such as your energy bills increasing.  Tips for creating a budget: Consider all your costs both fixed and variable Take a look at your previous sales and use this to produce a sales forecast  Factor in any one off costs such as a large payment for a replacement item or maintenance repairs to your premises that you are aware of  Plan regular budget reviews  Put aside an emergency budget for when needed With the right approach to creating a budget for your business it is possible to budget in for the rising energy costs, however there is support available for small businesses and solutions for saving energy to reduce these bills.  How to save on energy costs during winter?  There are several steps you can take, as a small business owner, to reduce your energy consumption and thus save money on your energy bills this winter. We have touched on several of these tips in previous blogs, which you can read here. Alternatively, for additional support, please do not hesitate to get in touch with our customer service team, who can support you during this time.  Support available to SMEs  Currently, there are a number of schemes and grants available via both the government and the energy suppliers for small businesses. These schemes have been designed for those businesses who can not afford to cover the rising costs of their energy bills. regulator , Ofgem, has further information about the various types of support available on their website. Guidance on the current Energy Bill Relief Scheme, provided by the government can be found here, and on our blog. 

As a business owner, you may have a lot on your plate running your small business. From managing employees and finances to marketing and sales, the list can seem endless. Amidst these tasks, one aspect that often gets overlooked is energy consumption. In our latest blog we will offer some tips on how to pay close attention to your business’ energy usage, and also provide our advice on what to do if you are currently dealing with rising energy bills.    Why your energy usage is so important  Energy consumption is an integral part of running a small business, and it impacts your bottom line in more ways than one. Energy is a significant expense for most businesses. The cost of electricity, gas, and other forms of energy can grow quickly and significantly impact your monthly budget.  Moreover, being mindful of your energy usage can also have a positive  impact on the environment. By reducing your energy consumption, you can decrease your carbon footprint and contribute to a healthier planet.   How to determine your business’ energy usage The first step in understanding how much energy your small business is using is to track and monitor it. This can be done through utility bills and by paying attention to the equipment and appliances you use on a daily basis.  However, thanks to the wonders of digital technology we can now also review energy usage with a handy smart meter. A device that allows you to see your energy consumption in real-time. With a digital display you can choose to see for yourself how much energy your appliances use but also how much this will cost you. At D-ENERGi we have been supporting the smart meter roll out, providing our business energy customers with installations and set up, more here.  Another way to determine your energy usage is by conducting an energy audit. This involves a professional auditor coming into your business premises and evaluating your business’ energy efficiency and identifying areas where improvements can be made. These energy audits can provide you with a wealth of information and advice on how to reduce your consumption and save money. If you’re struggling to identify areas of your business where you may be able to save, we would recommend an energy audit.    What to do with rising energy bills If your energy bills are continuously rising, one of the first things you should be doing is addressing your energy consumption. Being able to pay close attention to your usage and reduce the use of particular appliances or machinery, in periods when they are not required, will make a big difference to your energy bills.  If you are concerned about your energy usage or do not understand the information provided on your energy bills, contact the D-ENERGi team for advice and guidance.