Small businesses scramble to cut costs

Small businesses are poised to do whatever it takes to save money in light of the government Spending Review, a current study reveals.  At least half of the UK’s small businesses, with 10 employees or less, will switch all sorts of suppliers in order to save money.  This involves a massive swapping out of almost £2 billion in services and supplies.

More than 80 per cent of the small businesses reported that they have known all along that changing suppliers could save them money, but they haven’t done so in 3 years or more.  One expert explains this by saying that small businesses become complacent with their suppliers and don’t want to rock the boat or they get to know many of them on a close basis and, even though they realize they could save by switching, choose the devil they know.

Apparently all bets are now off due to the dwindling economy and the government affect on small business.  Somewhere in the 50 per cent range say they intend to shop out all of their suppliers and servers to get the best deals they can.  Others have particular areas of spending where they believe they can do better by changing providers.

Some of the areas targeted for change are energy and utility companies, banking, mobile telecoms, fixed telecoms, broadband, accountants, office supplies, and insurance. Authorities warn that this could have a ripple effect because a percentage of these suppliers are small businesses themselves.

It of course remains to be seen what exactly will happen, but some businesses have already begun switching and are reporting substantial savings by doing so.  This may drive other small businesses to act on shopping out their accounts even quicker.