According to studies, up to a third of small businesses list energy-related expenses as one of their biggest growth obstacles. Even though a lot of other factors also come into play, the cost of energy can significantly hinder small businesses when it comes to their ability to expand and grow.
If you have a small business, don’t make the mistake of ignoring your energy costs. Instead, carefully evaluate exactly how your business uses and pays for energy. By doing so, you can often save a significant amount of money, making your monthly energy costs a lot more affordable.
This is a particularly good time to evaluate your energy usage since the cost of power is expected to go up soon.
Below, you can find several different solutions from Josco Energy New Jersey for lowering your company’s energy usage.
Evaluate How Your Business Uses Energy
Learning more about how your company currently uses energy can make it easier to find ways to decrease your usage in the future. This can lead to lower ongoing energy costs. Some of the questions that you may want to ask during this process include the following:
- Is the equipment that you use as energy-efficient as it should be?
- Are you leaving equipment turned on all night when it could be shut off instead?
- Can you alter how you heat or cool your building?
- Would a smart meter make it easier for you to keep tabs on how much energy your company is consuming?
- Does your business qualify for any government-sponsored programs or tax benefits that are centered around saving energy?
- How can you convince your staff members to find ways to cut back on how much energy they use?
Reading through these questions should spark some ideas of ways that you may be able to cut back. Digging a little bit deeper and coming up with in-depth answers can help you discover even more ways to save.
Analyzing Your Power Bill
A surprisingly high number of small business owners don’t take the time to analyze how their companies are using power. Even worse, many of them don’t understand the information contained in their power bills.
The energy bills that you receive each month can provide you with valuable information about your company’s energy usage. In fact, taking a closer look at your monthly bills is one of the most effective ways to discover potential savings.
It is especially important to look at how much you are paying for energy – particularly when your energy contract is up for renewal. Below are some of the key questions that you should address:
- What energy tariff is your company on? Is it appropriate for your business?
- Are there any terms or phrases that you don’t understand on your bill? If so, learn what they mean so that you can be sure you aren’t overlooking anything important.
- How much are you paying for your energy? Even though this seems obvious, it is important to look at exactly how much the energy company is charging you. You should also evaluate how much energy your company is expected to use during the upcoming year.
With so many other things to take care of, small business owners often overlook the renewal period for their energy contract. As a result, they wind up paying a lot more than necessary for the energy that they use. In some cases, business owners may not even know that they have a contract with the company. Even though it can be a bit of a hassle, it is worth taking the time to compare different companies that supply energy. Review your contract to find out exactly when it ends. Set aside time in your schedule at least a month before that date to check out all of the other available options.
Reach out to the company that you are currently with to find out what type of renewal tariff they can offer. You should also gather data from additional suppliers to see if you can get a better price. Comparing all of your options can wind up saving you a bundle on your energy costs.
If you are too busy to learn more about how energy contracts and tariffs work, you can turn to energy brokers for help. These brokers provide knowledgeable advice and guidance so that you can choose the best energy supplier for your needs.