UK Businesses Could be Losing Out on Savings of £1bn
Failure to adopt effective approach to facilities management could be costing small businesses approximately £120,000
Small businesses could be losing out on collective savings of £1bn as research reveals that 26% of organisations are failing to manage their facilities effectively.
The research, conducted by the Royal Institution of Chartered Surveyors (RICS) and featuring 707 private and public firms, found that businesses not taking a strategic approach to facility management are costing themselves an average of £120,000.
Facility management involves purposefully coordinating a business’ premises, people, and resources; and according to the RICS’ findings the hesitation to invest time and money in creating a strategic facilities management plan is the main reason why companies are missing out on savings.
50% of the companies who implemented a strategy stated that it saved their company money with 39% of private sector businesses stating that it had positively affected their profitability and 48% saying it benefited turnover.
Furthermore, 59% of respondents found having a facilities management plan in place increased the company’s overall productivity and 49% stated it promoted the business’ attractiveness to customers.
Johnny Dunford, global commercial property director at RICS, commented on the research:
“It’s clear from our research that recognising facility management as a strategic discipline has the ability to bring about tangible business benefits for organisations of all shapes, sizes and sectors.
“By recognising FM as an important strategic discipline, businesses could reap the huge business benefits it promotes.”
To ensure your business is running effectively, have a look at Startups.co.uk’s checklist and see how your business could increase efficiency and profitability.