Worried microbusiness owners have an average of just NINE weeks left before they will be forced to stop trading, despite lockdown being eased.

New research by Smart Energy GB, which surveyed the owners of 1,000 firms with ten or less employees, reveals the devastating financial effects of the pandemic, with three quarters of those polled anxious about how they will keep their business afloat in the coming weeks and months.  

And the biggest concerns for struggling owners are a lack of customers, cashflow issues and that consumer confidence won't return quickly enough. 

While many have now started trading again, 46% of respondents admitted they had already considered permanently closing their doors because of the pandemic's impact. 

“COVID-19 has been hugely challenging for microbusinesses across Great Britain," said Michelle Ovens, MBE, founder of Small Business Britain. 

"As lockdown eases and firms get back to business, many are weighing up their financial situation and focusing on how to recover and move on. Now is therefore a good time to evaluate your business expenditure and identify new ways to save money. 

“Everything from negotiating deals with suppliers, through to reviewing business models and shopping around for deals should be on the table. Embracing new technologies such as smart meters, which help you to identify ways to reduce your energy consumption and therefore save money, is another particularly valuable thing to do at this time.”

According to the research, owners have been keeping an even closer eye on their cash flow, with 34% taking drastic measures such as not paying themselves.

Three in ten have dipped into personal savings and 18% admit borrowing from family to stay afloat.

“COVID-19 meant that most of our upcoming contracts were cancelled or postponed, leaving us all stunned," said Josh Kay, who owns The Syrup Room, a full design microbusiness based in Bournemouth.

“To help keep our business afloat we accessed the Government help given to us. We also decided early on to take a line-by-line approach to managing our cash flow, getting a better understanding of how much we were spending across the business.

“This is why we recently got a smart meter installed. It will help reduce our energy waste and know exactly what we are using, allowing us to improve our energy use and having the added bonus of reducing our bills.” 

Many admitted that they still estimate their energy costs, despite 56% agreeing that having a better understanding of their energy use would give them greater control over their business expenditure. In fact, energy is the second most common cost that microbusiness owners estimate, only behind tax. 

“There’s no doubt it’s been an incredibly difficult time for businesses, and particularly for those at the smaller end of the scale. Even though microbusiness owners have taken a forensic approach to their expenditure, and continue to make some difficult cost-cutting measures, energy is still viewed as a cost that can only be estimated," said Smart Energy GB's Robert Cheesewright.

“One easy step that will give microbusiness owners control back over their energy costs is contacting their energy supplier to see if they are eligible for a smart meter. This will help them keep better track of their energy and give them the information they need to reduce their consumption – in fact, 44% of those surveyed who have had one installed say it has highlighted areas of spending they weren’t aware of.”