What are some of your biggest expenses as a small business owner? Undoubtedly you will find employee salaries and benefits (if offered) prove to be large expenditures. You will also be dealing with office equipment and property taxes when running a small company too.
While it may not seem like a big cost, about how much do you spend on utilities during a fiscal year, specifically electricity? Over time, those electric bills can quickly add up, giving you and your small business one more charge that cuts into your revenue stream.
Make the Right Choices
In order to make sure you are on top of all your office expenditures (including what you pay for electricity) for your business, here are some tips to follow:
- Be prudent – It is very easy as a small business owner to get behind on paying bills/sending out invoices when you have so much to do each day. If you’re running the business with one or a small number of employees, make sure one of them (having another to cross check things etc. is never a bad idea) is in charge of the accounting. Simple tasks like paying bills should never be taken for granted. If you run the company by yourself and feel like you don’t have the time to manually manage your bills, there are online bill paying tools available to handle this for you. Most importantly, make sure you pay yourself for all the time and effort you put into running your small business;
- Cut costs – Given utility bills can add up rather quickly, do a periodic inventory of your office to see where you can save some green. Review your office equipment for starters. Office items such as computers, printers, a refrigerator in the break room etc. can add significantly to your electric bills over time. Make sure all of these items are running efficiently, meaning you are not spending extra money for items that have to work twice as hard to operate;
- Work with your employees – If you have employees, make sure they get the message to conserve when possible. Simple items such as turning lights off in the break room when it is not being used, making sure the last employee out of the office turns off all lights etc. will help you save money over the long haul. You should also meet from time to time with your workers to discuss ways your small business can save money. Even simple things such as recycling office cans and bottles and taking them to a recycling center once a month can mean some additional revenue for the company;
- Shop for the best buys – Lastly, if you’re not happy with your current utility provider, do some shopping around to see if there are better rates out there. Due to deregulation in various states, many consumers and business owners do have options as to who will provide their utility services. It never hurts to see if you can get a better deal than your current one.
About the Author: Dave Thomas writes for a variety of websites on topics such as human resources and running a small business.