It’s
official. Business inflation is still more than twice as high as that for
consumers. In 2013 it is running at over 6%. On a positive note, it is not
quite as high as 6.7%, which was last year’s statistic. The news comes from a
survey of members of the Forum of Private Businesses. It reported that costs
had risen for a number of areas.
Energy Costs
Not
surprisingly, the first was energy, the field where price rises have been
dominating the news and the speeches of politicians. Despite all their efforts,
everyone is facing these rising costs, and businesses which cannot operate
without energy are being even harder hit than households.
If
you feel you have been really unfairly treated by an energy provider, you may
be able to complain to the Energy Ombudsman. This costs nothing but will only
apply if you fall into the category of micro business, i.e. you don’t have more
than 10 employees and your turnover doesn’t exceed £2 million. If you don’t
quite fit that profile but your annual consumption of electricity is 55,000 kWh
or less, and/or of gas is not more than 200,000 kWh, you could still be
eligible. Other SMEs would need to take legal advice on whether it is worth
pursuing a dispute with an energy company.
Transport Costs
These
were listed next. Whether you or your employees have to travel by road, rail or
air, the costs are rising. The recent announcement of another fuel duty freeze
is welcome news, but the best way to cut these costs is to travel less. Video
conferencing technology has come on in leaps and bounds, and a small investment
in this could save you money on travelling to meetings in different parts of
the country or even in other countries.
Marketing Costs
For
a small business, it’s important to maintain awareness in the markets and to
continually attract new customers. But marketing campaigns can be costly and
not always bring the response you want. Your bookkeepers should be able to help
you monitor that. You also have to be really careful that you have your
targeting focus right and use social media and other cheaper means available to
reach that audience.
Materials and Stock
Your
suppliers will be feeling the pinch just as you are. Small businesses often
have to pay over the odds for small deliveries of goods. One way to get around
this problem is to join a consortium of local businesses, which can order in
bulk and have much greater negotiating power. Ask your outsourced bookkeepers if they know
of one that you can join. If not, with all their local contacts, they could be
very helpful in getting one set up.
