Many small and medium-sized businesses must become more adaptable and learn how to make the most of green advice to combat fuel and energy price rises, if they are to survive over the next few years.

The Federation of Small Businesses conducted research amongst their members in May 2008 and found that 80% of the 9,000 respondents said that rising fuel costs would make it difficult for them to expand their businesses or hire more staff in the 12 months up to April 2009. Furthermore, almost 40 per cent of the respondents said that rising fuel costs were likely to result in a reduction of manpower at some point over the next twelve months, although encouragingly 53 per cent said it was ‘not very likely or not at all likely’ to have an effect.

Although many small businesses are not directly involved in transport or haulage they still suffer indirectly from increased fuel costs passed on in the form of higher charges for raw materials, or services provided by others. Already reeling from above inflation increases in oil, gas and electricity costs over the past 12 months, small business owners are coming to terms with higher costs passed on by suppliers, forcing them to reconsider their margins.

So, other than lobby government to lower fuel duty, or to provide specific help for small businesses, what can business owners do to weather the crisis? Small business advice is forthcoming from many different sources, such as the FSB, trade organizations and government organizations such as Business Link, and owners are advised to get as much as possible in order to stay ahead of the game. Such advice could include how to ‘green’ the workplace in order to reduce utility bills, as well as where to go to get grants and tax benefits for taking such action.

With cash flow issues likely to increase in significance because of the credit crisis it would also be advisable for small businesses to engage in conversation with their banks, if they have not done so already. For example, if a business overdraft is required to help pay the company’s wages, then supporting documentation such as outstanding contracts, invoices and details of other income due will help the business owner’s case. Insufficient cash flow can be one of the biggest obstacles to businesses running smoothly, and banks have the expertise to advise on that important issue.

Indeed, most of the high street banks are geared up to offer small business advice to those who need it and have dedicated business teams in tune with the challenges facing business owners.

In order to survive many businesses who are operating on incredibly tight margins may welcome all the advice and help they can get over the next few years.

Disclaimer: This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.

Isla Campbell writes on a number of topics on behalf of a digital marketing agency and a variety of clients. As such, this article is to be considered a professional piece with business interests in mind.

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