In these challenging times, the right support can make all the difference between success and failure. So this issue,we’ve chosen to feature some ideas you may find helpful.

1. Spring/Summer 2013
here’s how
we can help your business…
Support that can make a difference
Succeed
How a business plan can help
you thrive
Save
Energy efficiency for all types
of business
Credit
Tips to help beat late payers
1

2. Welcome Energy Market View
Energy market view
In these challenging times, the right support can make all Changes to benefit businesses
the difference between success and failure. So this issue,
we’ve chosen to feature some ideas you may find helpful. Despite a change at the top, the Energy
Janet Wood is an
Bill looks set to become law, and earlier independent energy
journalist and former
developments could be good news for editor of Utility Week
SMEs. Janet Wood reports.
A change of energy minister in April, when
Michael Fallon took over from John Hayes,
For starters, our Hot won’t disrupt work on the Energy Bill. There is
Topic looks at how What’s inside dispute on some detail in the bill, but cross-party
business planning Energy market view 3 support on the broad provisions, so although there
could help you succeed will be opportunities for grandstanding speeches,
npower news 4
(page 6). This follows the bill should be law by the end of the year.
our own research which Hot topic: Planning for success 6
found that many SMEs Focus on: Energy efficiency 9 The smart shift Ofgem has also been making progress on its Retail
aren’t benefiting from Green spotlight: Sustainable travel 12 Market Reform. That may change the look of your
For business energy customers, there are more
this key business aid. bill – most obviously, there should be clear reminders
How to: Beat the late payers 14 immediate policy developments. The regulator
To help you save money, we ask one of our Ofgem has been busy with plans to switch all about when your contract comes to an end.
energy efficiency experts to share his top tips customers from dumb – or passive – meters to
across a number of business sectors – see page 9. ‘smart’ versions, and business customers are the Efficiency funding
And we look at sustainable travel and the tools Your feedback matters first on the list. Some businesses have already been Meanwhile, the long-promised Green Deal has
available to help you cut transport costs (page 12). We value your comments and upgraded and some will receive new meters in the finally gone into operation. This measure aims to
suggestions, so if you have something next two or three years. The new versions will give tackle a persistent problem for many homes and
Late payers are a concern for many businesses,
to share, please email us at businesses far more information about their energy businesses – despite it being clear that improving
so we ask an expert to offer some advice to help
use which, it’s hoped, could help them cut demand. energy efficiency will pay off in the long term,
get the credit flowing again (page 14). hereshow@npower.com For example, they will make it obvious just how the big upfront cost is hard to swallow. Now a
We hope you enjoy this issue, and please do let us much energy is being used to run lights or appliances Green Deal Provider, who may or may not be
know what you think. when they aren’t needed. For larger businesses, part of an energy supplier, will fund your
it could enable them to consider different tariffs improvements and then be repaid out of savings
Rachel Barrass
to better reflect peak energy use. on your energy bill.
Customer Service Manager
Some larger businesses will already be using meters You probably won’t see a lower energy bill to start
with automated meter reading (AMR) technology, with – but nor will you have a large bill to pay for
which are especially useful where companies want the installation. Over time, as the loan is paid off,
to understand and compare energy use in different you will see the financial benefit. It’s worth finding
parts of their operation. If that’s already working for out more about an assessment to see if it could
you, you won’t have to switch to smart meters. work for you.
Editorial content provided by Susannah Lawson & Associates (www.slcommunications.co.uk).
npower is a registered trademark and a trading name of Npower Direct Limited (registered in England and Wales No.3782443) and associated companies.
Registered Office: Windmill Hill Business Park, Whitehill Way, Swindon SN5 6PB.
2 3

3. npower news Local Rugby League player Omari Caro (centre left) joins the npower news
SME team for Comic Relief, as staff get into the spirit to raise
funds ahead of manning the phones for public donations.
Car sharing can save
commuters £400
npower staff at the company’s Solihull offices
are being encouraged to reduce their carbon
emissions, following the launch of a new
car-sharing initiative at the site. The ‘Double
Up’ scheme already operates across other areas
of the business and aims to encourage car
sharing by matching staff who register via the
npower car-share database. Calculations reveal
that doubling up with a colleague on a ten-mile
commute to work can save around £400 per
person each year. At the npower Solihull site,
car sharers are also eligible for a priority space
closest to the office building, providing the best
opportunity for a quick and simple arrival and
npower takes departure each day. See our article on page 12
for other sustainable travel ideas.
Red Nose calls
Staff at the npower SME call centre in Hull
handled around 2500 calls from Red Nose Day
Number one by 2015
donors on 15 March, helping to secure around npower is committed to becoming number one
£66,000 for good causes. “After we were chosen in the industry for customer experience by 2015,
as the regional call centre by Comic Relief, according to new CEO Paul Massara (above).
120 staff volunteered to answer the phones Businesses go online for advice “In the past we’ve been an engineering-led
and process donations from the public,” explains The npower blog is now receiving thousands of hits, company and we were known as number one
Ben Jones, Head of Service for SME. “Although despite only launching a few months ago. “Our aim is for investment and innovation in the UK’s
the call volume was high and we had to remain to respond to visitor demand,” explains Amrit Seehra, infrastructure,” says Paul, who stepped into the
extremely focussed, there was a really great npower SME Online Marketing Lead. “What’s great CEO role in January. “From now on, we’re a new
atmosphere and sense of shared purpose.” about online content is that it’s easy to see what’s customer-led business and we want to be number
popular and also get instant feedback from visitors.” one at this too.”
Call centre staff also raised £1500 themselves
from a wide range of activities including a cake Energy saving topics are of particular interest to The comments come amid a complete company
bake, fancy dress and karaoke event and a businesses, so Amrit’s team has launched an energy transformation in which all processes are being
raffle – and some staff even volunteered for a efficiency series including how to save energy in key redesigned to make sure they reflect customer
sponsored head shave. npower also donated areas such as lighting and refrigeration, as well as feedback and drive customer satisfaction. There is,
£5000 of corporate funds to Comic Relief. targeted posts for different business sectors. admits Paul, much to do. “Energy companies must
“This is a great example of how well our people “It’s great to see how popular the blog has become do better”, he says. “The changes we need to make
come together to support such worthy causes, and we encourage all our business customers to visit are not going to happen overnight – but watch this
and I’m really proud to be involved,” says Joel npower.com/blog and to let us know if there are any space – the changes start here.”
Chapman, npower Executive Relations Manager. topics they’d like us to focus on,” concludes Amrit.
4 5

4. Hot topic Hot topic
Planning for success
Recent research commissioned by npower suggests planning isn’t a priority for
many SMEs. Yet, as business journalist Mark Williams finds, it can make all the
difference to survival and future growth.
Your average SME owner or manager might be A useful road map
good at many things, but planning doesn’t appear
“Research tells us that new companies that plan
to be top of the list. Research carried out recently
are 60% more likely to survive their first year,
on behalf of npower suggests that 57 % of SMEs
and businesses with a sound business plan grow
only plan for the next 6 to 12 months, with just
as much as 30% faster than others. Planning is
9% looking beyond three years. More than half
key to success in business.”
(55%) wish they could plan further ahead, but
57% say an uncertain economic climate is the
As Parsons points out, having an up-to-date plan
main barrier to doing so.
helps you understand how well your business is
doing, by comparing actual performance against
The old adage would have us believe that failing to
data points. “For example, your business might
plan is planning to fail, yet for 21% of respondents,
need to turn over, say, £10,000 a month to achieve
business planning isn’t a priority and 42% say
the objectives set out in the first year of a three-
they do not have the time or need more internal
year plan,” she explains.
resources if they are to do so. Track your objectives tendency to think the plan needs to be ‘right’,
in that it conforms to what a business plan
If your business plan is to have any credibility, To implement your business plan effectively,
“If you don’t have a plan you can’t make informed ‘should be’. But the plan needs to be about
the financial information must stand up to closer Parsons recommends having clear objectives
decisions about how to take your business your business and its development strategy.
scrutiny. Any claims, forecasts or projections linked to tactics, with responsibility assigned
forward,” warns Sabrina Parsons, CEO of Palo
must be rooted in reality, not fantasy. Parsons to individuals within your business, with due
Alto Software, global market leaders in business “Also, you’ve got to adjust your plan over time,
recommends putting enough time and energy dates stated. She adds: “You need to regularly
planning software. “You’re simply setting yourself because things won’t always pan out as you’d
into finding out “the real numbers” and other key review and track those objectives against your
up for what could prove a painful journey, which expected. It’s about understanding results –
information that explains your business, its market, results. It helps you understand where you
could lead to failure.” good and bad – accumulating intelligence and
people, objectives and development strategy. are and whether you are on track to achieve
harnessing it to improve your plan and help
your objectives – including making sure the
grow your business over time.”
In terms of length, Parsons says ten pages is often people assigned with responsibility are
about right. “Your plan should be broken down performing effectively.”
So what final pieces of advice does Parsons have
monthly for the coming 12 months, then annually
for small firms? “Think of your business plan as a
for years two and three. Beyond that, there’s too Parsons says some mistakes are common.
tool that can help you to run and develop your
much uncertainty for your plan to be sufficiently “Number one is too many businesses don’t
business more effectively. The second it stops
reliable. Review your plan at least once a month write a business plan – or they write one when
Sabrina Parsons being a tool, it becomes irrelevant,” she concludes.
and update it once a quarter,” she advises. they start up but never update it. There’s also a
CEO of Palo Alto Software
6 7

5. Hot topic Energy efficiency
Quick steps to help save on energy
Most organisations can reduce their energy consumption by up to 20% through better
managing their energy use and investing in cost-effective measures. But where to start?
We ask npower’s Energy Auditor and efficiency expert Andrew Fletcher to share his top
tips across three popular business sectors.
Chris Wildman,
Managing Director of Paganum
Case study
Chris Wildman is the managing “You have to set aside enough time when Hotels, pubs and restaurants Offices
writing or updating a business plan, which can
director and founder of Skipton- be a challenge when you have so many other
• ook to zone heating – fitting thermostatic
L • void blinds down and lights on – blinds
A
based online farmers market things competing for your attention. Writing is
controls to heating equipment such as radiators are often used to cut out glare but what
in different areas can help you cut back on frequently happens is lights are then turned
Paganum.co.uk, which sells only part of it; you must research the facts,
overheating and overpaying for energy. For bars on when the sun goes in. Using daylight
Yorkshire Dales produce to especially when it comes to financial information.
and lounges, 20-22˚C is the ideal temperature, blinds can solve this, as these redirect
consumers and trade. “I update my plan at least once a year. 22-24˚C in restaurants and dining areas, 19-21˚C natural light onto the ceiling and prevent
“We started the business five years ago and Unless you update your plan it’s no use to in guest bedrooms, 26-27˚C in guest bathrooms, glare simultaneously – and many also have
produced a start-up business plan. That forces you, things change so quickly in business and 19-21˚C in corridors and 16-18˚C in kitchens. perforated blades to allow a view outside,
you to think about what your business is and often things don’t turn out as expected. One of which appeals to staff.
my most popular items now is Yorkshire Chorizo • Reduce hot water waste – firstly check you are
where it fits into the market, as well as test
sausage, which is a new development. Revisiting not overheating your water – 60˚C is optimal • ower down – turning off electrical equipment
P
whether your business is financially viable.
your plan enables you to assess how well your for staff and guest use and is sufficient to kill overnight and when not in use can make
“I had some experience of producing business business is doing, and change your objectives off the Legionella bacteria. Then look at installing considerable energy savings as well as
plans previously, but I looked online for advice and or strategy if necessary. My business plans have tap controls in communal areas to prevent hot prolonging lifespan. Switching off just one
examples. You can learn a lot from other business certainly proved highly useful tools, I strongly taps being left to run. Spray taps and water- computer and monitor out of hours can reduce
plans, although, obviously, you have to input your disagree with those who tell you that business efficient (aerating) shower heads can also reduce running costs from £45 a year to just £10,
own information when writing yours. plans are a waste of time.” the volume of water without diminishing for example. Perhaps look at using stickers
user experience. to remind people.
8 9

6. Energy efficiency Energy efficiency
“Simply turning off lights,
heating, ventilation and air
conditioning when they are
not needed can reduce energy
bills by as much as 10%.”
Andrew Fletcher
Garden centres and florists Three quick wins for all
• on’t waste heat – if you are growing
D
plants in a warmed environment, make 1. Turn it off! Simply turning off lights, heating,
sure you keep doors and windows shut ventilation and air conditioning when they
and regularly check timers to ensure your are not needed can reduce energy bills by as
system operating hours match what you much as 10%.
actually require. Using simple time switches
can help to automate this process so that
nobody forgets. A 1˚C error in the control 2. Review lighting – low-energy alternatives
temperature can also increase heating costs to existing lighting could bring considerable
by 8%, so check this is appropriate too. savings. For example, changing from
halogen spotlights to LEDs could save up
• aintain refrigeration equipment – when
M
to 80% in energy and reduce maintenance
using refrigeration to keep flowers and plants
costs too, as they last many times longer.
fresh, it is important to ensure any debris is
removed which may restrict airflow around
the unit as this can lead to fridges consuming
3. Appoint a champion – asking for a volunteer
more energy. Also make sure it is set to the
to help spearhead efficiency measures and
lowest optimal temperature needed
encourage other staff to save energy can
to maintain the quality of your stock.
make all the difference when it comes to
changing behaviour in your workplace.
For more help and advice, log on to
npower.com/SmartStart
10 11

7. Green spotlight Green spotlight
Green is for go
Small changes could set your business along the road to a strategy for greener
transport. Motoring expert Simon Hacker offers some handy route markers.
A cost-effective transport plan can help your Be a friendly spy
business in many ways. It’s a broad issue that
If your fleet feels like a juggling act, Telematics can
fans out into how employees access their work,
help maximise efficiency. Using satellite positioning
what and how they drive, how you deliver your
to record on your PC exact vehicle locations,
product or service and, ultimately, how you’re
plus such data as speed, makes this a popular
perceived by current and potential clients.
tool among large fleets. And with connection now
As a consequence, wise management can be coming in as low as £170 per vehicle, telemetry is
daunting. But there are easy steps to develop increasingly within reach of smaller operations. Is it
sustainable transport practices, while the green? Certainly – if you have drivers out and about,
change can bring immediate savings and you can assign delivery or collection jobs according
trigger a raft of benefits which can extend to their exact location, saving time, fuel and vehicle
wear and tear. Be-spoke solutions? When you must drive…
beyond the balance sheet.
Despite the impetus and initiatives from Sustrans Consider investing in electric vehicles (EVs) or hybrids.
Wise-up your drivers Simply stay in (sustrans.org.uk) and local government, EV benefits could make your transport emissions-
Despite repeated initiatives to encourage Department of Transport statistics reveal that free – and make a bold corporate statement your
The Energy Saving Trust (EST) offers free advice only 1% of employees cycle to work. Consider customers can see. Perceptions of limited ability, as
for small businesses to help steer along a greener working from home, latest Office for National
Statistics (ONS) data shows 57.5% of us still join shower facilities and secure bike storage to make npower’s head of e-mobility Jonathan Woodthorpe
road. Sometimes, solutions can be small yet this healthy option more practical. explains, can be misleading: “Most EVs now offer a
powerful. Minicab firm Addison Lee offered its the logjam and drive to work. Nevertheless, the
Confederation of British Industry says more and range of 90 miles between charges, which extends
drivers a 50-minute training opportunity with Aside from the sizeable cash benefits, cycling well beyond the UK’s average daily drive of 8.4
economy experts from the EST. With a sharper more businesses now offer teleworking schemes.
brings a healthier glow to your working team – miles.” npower and parent company RWE have
focus on techniques for improving consumption, BT believes this boosts productivity by up to 20%,
and speaks volumes about your company image. installed 1900 charge points across Europe and a
the firm’s average mpg rate shot up from 38 to while cutting absenteeism.
You can sign up to the government’s cycle scheme new npower tariff enables EV charging for around
43.7, with some drivers achieving 40% more. (cyclescheme.co.uk) to help employees to get £1.20 from home. Typical savings against fossil-fuel
If it’s vital for staff to be on site, car-sharing can
The firm said the change was a revelation: tax-free savings of up to 42% on new bikes. powered vehicles equate to 90% – go to npower’s
slash employee travel costs and free-up parking
“We were amazed at how a few simple techniques On average, a cycling employee cuts your own calculator at npower.com/ev to work out
space for clients (see page 5 for more on npower’s
– like lifting your line of vision or looking ahead a company’s emissions by 225g/CO2 per week. the benefits.
own car-share scheme). The ONS says average
little more – could make such a difference.”
vehicle occupancy is just 1.09 people per car,
Cautious, mpg-friendly driving also spells a so the potential for developing an in-house scheme
reduction in accidents and lower insurance to buck this trend is huge. DID YOU KNOW?
premiums. As Jakes de Kock, Marketing Director The Energy Saving Trust gives advice for small businesses, including a free health check from a fleet
As an option to by-pass the entire costs of providing
of Fuelcard explains: “The techniques taught are expert, typically finding savings to the tune of 20%. It is also actively looking for businesses to take
wheels for workers, car clubs can offer a lean solution.
inherently defensive, so fleet managers often find part in research for plug-in fleet options.
Organisations like co-wheels.org.uk are keen to
collision and incident rates reduced, along with
work with small enterprises.
vehicle wear and tear.” Call 0845 602 1425 or visit www.energysavingtrust.gov.uk
12 13

8. How to…
Beat the late payers
Chartered accountant Elaine Clark of CheapAccounting.co.uk provides practical
advice on how to limit the chances that late payment will affect your business.
1. Know your customer 4. Take appropriate action
Carry out a credit check when you acquire Add to your knowledge of late paying customers.
new customers that request credit. Because Are they going through a difficult time or is this
circumstances can change – often rapidly – their usual modus operandi? Being patient could
repeat the process, at least once every six help you to keep a good customer, but there is a fine
months for customers that expect high-value balance between allowing more time and having a
credit. Also, find out about their business history. customer abuse your credit terms. Don’t be afraid
What do their accounts look like? What about of limiting future supply to late payers until their
the directors or owners of the business – account is back in balance. Also consider arranging
have they been involved in a failed business? additional payment terms (eg a set amount each
week to clear unpaid debts). As a next step, consider
2. Limit your exposure factoring the debt or using debt collection agencies.
Depending on your type of business, you could There will be a cost, but at least you may get most
ask for a deposit upfront or cash on delivery for of your money back.
goods or services supplied. Develop clear but short
credit terms. They don’t have to be 30 days – less 5. Be more selective
is perfectly acceptable. Communicate your credit Many firms worry about turning business away,
terms with all orders and sales. especially in this day and age. But if people end up
not paying you, they’re not customers. And for others,
3. Don’t make the problem worse you might have to consider whether extra time spent
Monitor your sales ledger and debtors’ balance (ie chasing overdue/unpaid debts really is worth it.
people who owe you money) closely. It will help
you to see how much is outstanding and how long
payment is overdue. Checking your sales ledger Elaine Clark
should be a daily task. When money is due – chase, Chartered accountant
chase and chase again. Don’t delay. Develop
standard chase letters and a clear credit control
policy. Use a polite reminder first; a quick phone
call is best, leading to more serious and constant
reminders if you still haven’t been paid.
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