Partner Article

Breaking down the SME growth barrier

Recently, the Forum of Private Business released a study which found that utility costs are considered to be a barrier to SME growth. Despite this, the results revealed that 85 percent of members surveyed are positive about the year ahead and intend to develop their businesses.

In the current economic climate, it’s vitally important for SMEs to operate in the most cost efficient ways so they can beat their competition and reinvest any savings back into their business. Phil Scholes, SME sales and marketing director at npower shares his top tips on how to gain a competitive edge by reducing energy costs:

· Check times – Check that heating time clocks have been adjusted to reflect Greenwich Mean Time and are only on when the business is open. Turning heating off when the business is closed, for example at weekends, could save nearly 30 percent in costs[i]

· Service boilers – Service boilers now to ensure they run efficiently over the winter. Inefficient boilers can waste up to 35 percent [ii] of energy compared to modern models. Many boilers can also be retro-fitted with energy saving devices (optimisers) to reduce energy consumption by 10 – 15 percent [iii]

· Check thermostats – Make sure thermostats are set correctly. Turning the temperature down by just 1°C can achieve savings of 8 precent [iv]. 21oC is the recommended temperature for office and shop environments [v] – but heating can often be set at 19oC as heat from equipment and lighting often brings room temperature up to keep employees warm and comfortable. You should also ensure that heat emitters, such as radiators, are not obstructed and preventing heat from circulating.

· Switch off – Turn all machinery and equipment off at the end of each working day. Computers, photocopiers, lights and heaters are frequently left on overnight and at weekends. Switching them off when they are not in use could save businesses up to 12 percent [vi]

In a challenging business environment, SMEs would be well advised to take a closer look at their business practices to see where potential savings could be made. As these examples show, small changes can result in big savings and it is certainly worth any small business spending time identifying simple ways to potentially reduce their usage and costs.

[i] Calculated on basis of switching heating off two days in seven

[ii] Carbontrust.com

[iii] Product manufacturer data

[iv] Carbontrust.com

[v] Carbontrust.com

[vi] Carbontrust.com

This was posted in Bdaily's Members' News section by Phil Scholes .