Many companies in Australia are concerned about their revenue, but a large number aren't also considering ways to cut their costs. While this can be a challenge, there are a few business expenses that can be reduced in order to build a more profitable business.
One of these is your electricity costs, with this having a considerable impact on your business finances. In fact, manufacturing activity alone is responsible for 16 per cent of Australia's total electricity use, according to the Department of Energy, suggesting there is plenty of room for organisations to reduce their costs.
So how can companies save money on their energy costs? Here are three solutions.
Undertake an energy audit
Often the first step towards building an energy-efficient small business is undertaking an energy efficiency audit. By taking the time to understand the specific uses of electricity in your company, you will have a much better idea of how different activity is contributing to your overall expenses.
Invest in energy-efficient equipment
Inefficient lighting or power-hungry computers are often a cheaper alternative when you first buy them, but they can add up to a considerable expense over the lifetime of a product. Energy-efficient products on the other hand, will use considerably less electricity, quickly repaying any costs incurred at the beginning.
As some small businesses will hold on to their equipment longer than larger organisations, the scope for further savings is only going to increase with time.
Adjust your usage throughout the year
During summer afternoons, many companies will incur significant energy costs because of the pressure on the grid, even if the business's energy use is no different to other times of the year. Adjusting your energy use for different times of the year, like reducing your lighting to make the most of longer summer days, can help to build a more energy-efficient organisation.
Minimising expenses and maximising your small business cash flow doesn't need to be difficult, as long as you get the right approach to major costs like electricity.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].