As a business owner, you’re always on the lookout for ways to boost cash flow. Although increasing sales is one way to make that happen, cutting costs can be a faster way to increase cash. Energy costs are almost always a top 5 expense for businesses. Regardless of industry, energy expenses can have a profound impact on the bottom line. Here are 8 ways to reduce expenses so you can spend your hard earned cash on growing your business.
Use Energy-Efficient Appliances
You try to save energy at home, so why treat your office any differently? At the top of the list of ways to reduce your utility bills, is using energy-efficient appliances, specifically ones with the Energy Star label, and compact fluorescent light bulbs. They’re sometimes more expensive up front, but most energy-efficient appliances come with government-sponsored rebates and are eligible for green energy tax credits.
You can save money in the long run by making your office more energy-efficient. Remember that you can request a free energy audit from your power company. An inspector will come out and do an assessment of your place of business and point out ways you can further reduce your energy bills.
Shop Around for a new Electricity Provider
Did you know that energy costs are almost always a top 5 expense for businesses? Regardless of industry, energy expenses can have a profound impact on the bottom line. Restaurants, auto repair shops, and even regular offices (law firms, accounting firms, realtors etc) use tremendous amounts of energy and small fixes can yield long-term benefits.
Heating and Air Conditioning
It’s something taken for granted, but the heating and air conditioning can be one of the largest energy expenses. A yearly HVAC tune up, a degree or two difference, fan usage and natural sunlight are all small tweaks that can add up to big energy savings.
Cut Out Paper
According to research by Xerox, about 40% of office paper is discarded within 24 hours of anyone printing on it. If you add up how much you spend on printing supplies, paper, and labor, you’ll quickly see that using electronic file storage can save you loads of money. By making use of free online space through services like Google Docs, Microsoft Office Live Workspace, Amazon Cloud Drive, and DropBox, you’ll be putting the dust jacket on the money-draining printer in no time.
Replace your old incandescent light bulbs
“Old incandescent bulbs make more heat than light,” said Leonhart. Energy Star-certified CFL or LED bulbs emit 70% to 90% less heat, use much less energy and also last a lot longer. When first introduced, they were more expensive, but low-priced LEDs are now widely available.
Dimmers are also helpful. They work with some energy-saving bulbs and all incandescent ones, letting you use only as much light as you need. On that tip, here’s an easy one: Don’t forget to switch off the lights when you leave a room.
Shop Around for Insurance
There are a lot of great ways to lower your insurance costs, but the most important step is to find and compare insurance policies. You should always be looking for the best rates out there, especially at renewal time. Use an independent agent because they aren’t financially bound to any one company and can usually find great rates based on your unique needs.
Install motion Sensors
Use dimmer, movement sensors, or occupancy sensors to automatically switch off lighting when not in use to reduce energy use and expenses.
Install Smart Thermostats
Smart thermostats aren’t just for the homes; small businesses can take advantage of thermostats like Nest, Ecobee, and Lyric too. These thermostats have shown to save homeowners up to 20% on their energy bills and can have the same effect for small businesses too.
Conduct technology and services audits
If you have not used a certain technology or service for the last 90 days, it’s time to cancel your subscription and stop paying for things you obviously do not need.
Figuring out how to reduce or eliminate costs is essential to the profitability and long-term success of your company. Trimming these expenses will decrease the revenues necessary to break even or make a profit, provide greater flexibility in long-term pricing strategy, and improve cash flow.