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Is Your Small Business Paying Too Much in Energy Costs?

When it comes to running a company, business electricity and energy costs can be an expense that prevents your business from thriving.

If you operate a small business, you already know that electricity and energy costs can be an extremely expensive part of your operating costs. In some cases, these costs can skyrocket and keep your business from thriving and experiencing the success it deserves.

Many business electricity providers offer plans and price points that are specifically tailored for businesses, but there’s never a one-size-fits-all plan that works for everyone.

If you’re looking for ways to save on your business electricity costs, read on to learn more about what to look for in a provider and what you can do to save money on your own.

The Importance of Energy for Business

Using energy is crucial to any business, and it’s an important part of any operation regardless of your industry. Just like you need electricity at home, you also need it at your place of business in order to keep the lights on.

If you operate a large production or manufacturing facility, energy is needed to keep your machinery running. It’s also important to have things like fans and air conditioning so your employees are able to work in a comfortable environment.

Of course, energy is also crucial to the operation of things like computers, servers, fax and copy machines, and telephone systems. Even something that’s often overlooked like the appliances in your breakroom need electricity to operate.

At Capify we’re here to assist you to manage your cash flow on your everyday business energy bills for small business by providing a directory and guide of some of the energy providers. Make cost-effective upgrades to energy-efficient equipment, buildings and  small business loans from $3,000 to $300,000,

At home, you can tailor your electricity usage to suit your needs and keep your costs down. However, in small business, you simply cannot afford to cut back production, reduce machinery use, or turn off the air conditioner in the summer. That’s why finding a special plan that is tailored to your needs is so important.

When you select an energy provider that caters to small businesses, you could potentially save quite a bit of money on overhead costs. You’ll need to shop around and do some price comparison between plans in order to determine which provider will give you the best deal and the best level of electricity for your operation.

Comparing Business Electricity Prices

You can begin your quest to find the right provider by comparing prices and plans online. There are several websites available that allow you to look closer at the various plans, price points, and other factors to help you make a decision.

These websites compare energy plans from the leading providers in your region to help you find a plan that works for your small business. This simple step is one of the best, most effective ways you can save money each month on your energy bill.

Many energy providers change their pricing and plan options frequently, so you may be surprised that there are better deals to be had. Your specific costs are due to a number of different factors, which is crucial to keep in mind. For example, a production facility that uses machinery will cost more to keep in operation than a small office with a staff of three to five people who only use computers.

The location of your business can also come into play when it comes to finding the best pricing. You’ll need to enter the zip code of your business address in order to get a list of electricity providers near you who can offer you the services you need. When you compare prices, make sure you have a current electricity bill with you so you know what you’re currently paying.

After you’ve entered all of the pertinent information, you’ll get a list of current providers along with their current rates. Use these results to compare each one until you find a provider that offers the rates you prefer. You can then use an online service to help you switch, or you can choose to make the call and switch providers yourself.

Finding the Right Provider

Reliability of service is key to ensuring that your small business runs smoothly. Make sure you choose an energy provider that is reliable and has a good reputation when it comes to the quality of service.

Just like any other purchase you make, take some time to read customer reviews. Be sure that the reviews you read are pertaining to business services and not residential so you have an accurate depiction of what you can expect.

Many providers offer budget billing, which takes the average of your energy costs over a span of a few months and charges you a set amount. This can be helpful for many business owners, particularly if you spend a lot of money to keep things running. If you choose budget billing, ask for an energy audit occasionally to find out if the price can be lowered.

You may want to call someone from the business division of the provider you’re interested in. They can help you understand how you will be billed and what you can expect when it comes to rates, billing processes, and ways you can save.

When you do your homework and research prices and quality, it’s much easier to find a business electricity provider that will give you the combination of savings and service you’re looking for. If you know other small business owners in your area, ask them who they use. They can give you better insight into which providers are good and which you should steer clear of.

How to Save on Business Electricity Costs

If you are concerned that your small business is spending way too much on energy and electricity costs, there are plenty of things you can do yourself that will help to keep this expense to a minimum. Even minor changes can add up over time, resulting in some pretty significant savings.

One way to reduce your costs is to convert your current equipment or machinery to more energy-efficient versions. Many manufacturers today offer products that use less energy than their older counterparts, which in turn passes those savings onto you.

Another effective way to keep your business electricity costs low is to focus on your peak usage times. Peak usage refers to normal working hours where every employee is present and working, and you may also have some customers thrown into the mix. You can combat this by staggering work hours, limiting the use of heavy machinery to night time only, or even by considering allowing some employees to work from home.

Since you probably have the heater pumping in the winter and the air conditioner blasting in the summer, a programmable thermostat is a good idea. Use the thermostat to set the ideal, most cost-effective temperature and then turn your HVAC down or all the way off when the office is closed for the day. These handy thermostats give you more control over the use of heating and A/C, but make sure that only you or other authorized people have access or you could end up in a “temperature battle.”

Other Ways to Save

Replace your current lightbulbs with energy-efficient versions wherever you can. You can also take advantage of natural light and leave windows open so the light streams in and the electrical lights stay off. Encourage and remind your employees to turn off lights whenever they leave the room or leave the building for the day.

Bring some fans into your office and turn them on during the warmer months. This will keep the air flowing and will keep your air conditioning usage to a minimum since fans will lower the air temperature and cost much less to run.

To keep your costs even lower, encourage everyone to power their equipment down every single day. Use power strips at every desk that can easily turn everything off with one simple flip of a switch. This will help you avoid what’s known as “phantom power,” which can cause your bill to be higher, even if you’re not using everything all of the time.

Your small business can even save money on energy when it comes to your landscaping! If you’re able to change it, plant more trees and shrubs around your building. These plants will provide extra shade and insulation, effectively keeping heating and cooling costs down. Check your facility for drafts and make sure your building has adequate insulation to keep costs lower.

Important Things to Look For

Running a small business comes with plenty of responsibilities. Your electric bill is one of the largest expenses you’ll incur, but luckily, it’s also something you have some level of control over.

When it comes to looking for the perfect provider, remember that every business is different and has different needs. Take a close look at where you can save on your energy costs and then implement new company policies to put them in place.

As for choosing an energy provider, make sure you select one that has a focus on business services so you know you’re getting what you need. Homes and businesses are similar in some ways, but they also differ greatly in others.

There really is no one best plan when it comes to your business electricity costs. However, you can ask for an energy audit that will show you where you may be falling short, and can also give you ideas where there is room for improvement.

Making Your Electric Provider Work for You

A good electricity service provider will listen to your needs and make any adjustments as required. They’ll also look for ways to help you save money on your costs so you can focus on the task at hand. Customer service is key when it comes to your small business electricity provider, so make sure you choose one that’s top-notch.

Online billing should be available to you so it’s easy to make timely payments. Look for service providers that show you your electricity usage throughout the month so you can monitor any significant changes. When you have control over your energy use, it’s easier to find ways to save.

The cost to own and operate a small business is significant, and you’ll spend plenty of money on marketing, website development, and employees’ salaries. Don’t forget the cost of the building itself and other operating costs including your monthly Internet and phone service, just to name a few.

Thankfully, you can reduce the amount of money you spend on your small business electricity costs with a few simple changes. Shop around until you find a company that will give you the rates and level of service you’re looking for, then make the switch.

Implement these energy-saving tips so your business is focusing on the job at hand instead of high energy costs. Encourage your employees to participate in these easy changes, like turning their lights and computers off or using fans to keep the temperature down in the office.

Ask if you can have a smart meter installed, which will help you monitor your energy usage more closely. There are plenty of ways you can be proactive to get more from your energy provider and maximize your savings.

Make the Change Today

It’s easy to save on your business electricity costs by making these small changes and shopping for providers. With a few tips and tricks, you can put that extra money you save toward other aspects of your business.

Try new things like adding landscaping or setting a programmable thermostat to help keep costs low. If you’re not happy with your current plan, shop until you find the right provider for you.

If you need a business loan or more information about financing, visit our help centre today for more information.

When it comes to running a business, energy costs can be a major expense, so it’s important to ensure an energy prover you’re getting the best providers that are right for your business.

According to a case study of a bakery on the Victorian Government website, Energy Made Easy There are case studies that involve a significant cost for bakeries of all sizes, ranging from around $10,000 a year for small or retail bakeries to $100,000 or more a year for larger factory bakeries.

For example, over half of the total energy used in bakery operations and other small businesses goes to running ovens, machinery etc. Other equipment, including lighting, dough proofers, refrigeration, and hot water, contributes the rest.

Upgrading to more efficient model equipment or purchasing new equipment or repair broken or damaged equipment all factors that small businesses make to get a business loan to decrease energy costs.

Below are Australian regional government guides on Business Energy information that may be helpful.

Australia Energy

New South Wales Energy

Victoria Energy

Queensland Energy

Western Australia Energy

South Australia Energy

Tasmania Energy

You’ll find energy savings by upgrading to high-efficiency equipment, improving equipment maintenance, and changing operating procedures. An unsecured business loan is a type of business loan that does not require the business owners to provide security as collateral. This means you do not have to offer your assets to upgrade your business with energy-saving equipment.

If you run a business in food and hospitality business typical groceries, fresh meat, dairy products, vegetables and liquor upgrading freezer doors and dairy and liquor refrigerator doors, and installation of power-saving lighting even renewables such as solar energy systems.

Unlike a commercial bank, Capify’s requires minimum paperwork, as it is an unsecured business loan. Once approved, the funds will be deposited in your account within 24 hours, not weeks or months.

A Capify Unsecured Small Business Loan is right for you if;

  • You’re looking to avoid a steep payment at the end of the month
  • You’re looking for a fast and simple business finance solution
  • You’re looking to unsecured business funding to:

Small Business Loans – If your company has fluctuating cash flow, no problem – our Merchant Cash Advance or MCA adjusts to meet the daily needs of your business finances and the loan amount that suits your business needs with a very simple and fast application process.

Rather than fixed daily repayments, a small percentage of your credit card and EFTPOS terminal sales is repaid daily for the term of your cash advance. Quick business funding from Capify can solve your business funding requirements in as soon as 24 hours once approved. Is your business seasonal? No problem. Our loans can help adjust to the highs and lows of your business cash flow. Call us on 1300 760  930 and discuss your business loan requirements and loan amount. Most providers will offer plans specifically tailored for businesses, but there is no one-size-fits-all plan that is suitable for every business. See how to find a business energy provider and what to look for below. Our team have provided a guide and directory of energy providers. If you’re thinking of switching energy providers our guide may help you find a provider. Business energy use such as electricity, gas and renewable providers is a competitive market in Australia, with a wide range of energy providers offering discounts, flexible plans and other benefits. So, if you’ve been with the same energy provider for a while and are happy but from time to time may impact your cash flow, Capify may help you overcome bill shock with unsecured small business loans or a merchant cash advance.

Control your costs

Find out how you can reduce your energy use and save money on your energy bills, by clicking on the topics below:Price isn’t the only thing to think about when shopping around for energy plans, but it is an important one. There can be big differences between the cheapest and most expensive energy plans in your area. The amount you can save also depends on how much energy you actually use and when.

 

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