Seeking Business Savings? Start With Your ... - Personal Finance

With difficult economic conditions still plaguing the UK and the wider world, costs are continuing to increase even as budgets and other resources are shrinking. Energy costs in particular are continuing to grow, as the rise in wholesale gas and electricity is passed on to the consumer by the energy providers.

In these circumstances, it is more important than ever for businesses to find ways to make money go further ? and to avoid pointless expenditure. One of the most effective ways to do this is to cut back on energy use. This does not have to mean darkened offices and chilly conference rooms though.

The Carbon Trust has reported that although small and medium-sized enterprises (SMEs) account for some 45% of all business energy use, almost all of them are not achieving maximum energy efficiency, despite having the greatest potential to make substantial savings through installing technology such as lighting timers and smart meters. Movement sensors in places such as meeting rooms and warehouses are also a good idea, ensuring that lights are only kept on while these rooms are in use.

There are even more simple solutions too ? last October, the Trust published research showing that by reducing heating by just one degree could save UK workplaces an incredible ?35 million a year.

Companies should always ask employees for their input. Staff members are often better placed to see how energy is wasted in the workplace than owners or management.

A member of staff can even be appointed to oversee energy-efficiency initiatives and to ensure that simple cost-saving measures are implemented, such as draughtproofing doors and windows, ensuring that the light bulbs are replaced with low-energy ones, and confirming that all lights are switched off at the end of the working day, along with all appropriate electrical devices. Leaving computers, printers and photocopiers on standby all night uses far more electricity than you might think.

There are a host of other ways to become more efficient with energy. Performing an ?energy audit? of a workplace can cut bills, as can switching energy providers to one which offers a better business energy prices.

Even when an SME has found a good business energy deal, this should be no reason to be lax. Energy companies like rolling contracts, but the canny consumer should always shop about for a better deal as the contract comes to an end ? a better option may well have entered the market in the meantime. Whoever is responsible for paying the bills in a business should follow these three simple steps: (1) Obtain the details of their energy contract, (2) note the contract?s end date, and (3) set up a reminder in their diary as this date approaches to shop around for an improvement.

Finally, SMEs should look at green solutions for the longer term, such as installing solar panels or other sources of renewable energy, like wind turbines, to generate their own power. This can even make money, as any excess electricity generated can be sold to the National Grid. Energy obtained from green sources, such as marine current power, is often cheaper than less environmentally-friendly sources, since renewable power is subsidised by the UK government.

Image source: Walmart Stores, http://www.flickr.com/photos/walmartcorporate/5391506406/sizes/m/in/photostream/

the forgotten man