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The fundamental aim of any business, regardless of its size, is to make a profit. Doing this successfully means that there should be more money coming into your business than is being paid out. However, with rising costs of such things as raw materials and electricity, many businesses have seen their overheads significantly grow over the last couple of years.

This is particularly true for small businesses, which generally don’t have the resources to cope with price increases as well as their bigger counterparts. This is simply because they have relatively high production costs and smaller profit margins. Not only that, but they are less able to pass on price hikes to their customers.

According to the experts, one of the easiest ways to reduce expenditure, therefore, is to save energy. As a result, it makes sense to understand how your business uses things like gas, electricity and water, since this will help to identify ways in which they can be reduced and managed. For example, installing a smart meter can help to discover where you’re expending most energy.

Turning off any equipment that’s not in use will additionally cut energy costs. Indeed, just one computer being left on for 24 hours a day will cost more than £50 every year. By switching it off at night and using the standby feature during working hours, your business could see this reduced to £15.

Furthermore, ensuring that your business uses energy-efficient lighting can see you save up to 75% on your bills, while turning the thermostat down by just one per cent can knock around 10% a year off heating costs. Just remember not to make it too cold for your employees though, as this can have a detrimental effect on productivity.

Making sure that your business’ premises effectively consume energy is also important. Consequently, it’s worthwhile turning off any heating or lighting in unoccupied spaces, such as cupboards, empty rooms and corridors. Asking your staff to reduce the amount of paper they use can additionally help to lower energy consumption.

Properly maintaining equipment or investing in newer, more energy efficient versions is another good way to save on your business’ utility bills: the Carbon Trust has estimated that badly maintained heating equipment, for example, can add up to 10% to energy bills.

It’s also possible to save money on the energy your business spends by researching the marketplace and comparing the deals offered by the different energy suppliers. In fact, research suggests that there is as much as a 50% difference between the costs of the highest and lowest energy rates available.

With the annual costs of utilities accounting for between five and ten per cent of a business’ annual budget, it’s important to ensure that you have an effective energy management strategy in place. In addition to lowering your monthly bills, your business will also be more environmentally friendly; a factor that’s becoming increasingly important in the eyes of consumers.

Adam Singleton writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.