A 20% saving in energy consumption can have the same effect as a 5% increase in sales.
In many instances, business finance management isnt a million miles from personal finance. Think of the average persons income and outgoings. Most people are well-aware of what they earn every month, and they often work all-hours chasing pay increases and bonuses. On the other hand, ask someone about their outgoings (mortgage, loans, credit cards) and theyll probably not have considered them for a while.
Making profit is what commercial business is about, of course. But, energy costs are a similar elusive outgoing. Like credit cards or loans for the average person, the payment of energy bills are often taken as a given they are just paid without a second thought. And, in the current environment where energy prices are rising rapidly, this is an area of spend that UK plc needs to take seriously.
Energy prices are a difficult battle to win were not suggesting you change provider, or indeed stand outside your energy supplier building with picket boards. But, there is a battle you can win thats closer to home. Namely, being more aware of the energy youre using every day, week and year.
The fact is, lower energy costs bring immediate savings to the bottom line. Its actually one way of increasing profitability without increasing sales. According to the Carbon Trust, a 20% saving in energy consumption realistically achievable by most businesses can have the same positive effect as a 5% increase in sales. It now sounds more attractive, doesnt it?
So, what can you do about your energy consumption?
By taking an energy audit, you could get a comprehensive and individual behind-the-scenes picture of your building. You could find out more about your heating usage, lighting, air conditioning and ventilation, and discover where operations can be improved.
Find out about grants
You can save up to 30% on energy saving investments by following initiatives set up by the UK Carbon Trust or the ECA Scheme.
Install measuring equipment
If you cant measure the energy youre using, you cant manage it either. Installing measuring or controls systems will ensure you always know where you stand.
Just being aware of the energy youre using (and where youre using it) can help you to save on bills straight away. Even if you decide to invest further in energy management for instance, by installing building control systems you should be able to recover the investment costs in as little as 12 to 18 months. After this time, your energy savings will effectively be profit for the business.