Whether your business tends to slow down or speed up in the summer months, there are a few things small-business owners may consider to cut expenses as the temperature rises. Here are six savvy ways for small businesses to save money during summer.
For retail stores or restaurants, remote work may not be possible. However, for other types of businesses, using a remote office setup might lower overhead expenses without negatively compromising your services. Many property leases tend to end in the summer.1 If your lease ends soon, switching to a virtual office setup could be an opportunity to give remote work a trial run.
Laptops, even those with docking stations, tend to be more energy-efficient than desktop computers.2 Desktop computers also may create more heat than laptops. Swapping out energy-efficient laptops for desktops may lower your energy and cooling costs.
For fledgling businesses with busy and slow periods throughout the year, maintaining enough staff is a constant challenge. You may find that the number of staff needed to keep you afloat during busy times does not have enough work to do during slower times. Some labor services allow you to share receptionists, accounting staff, and other employees with other businesses. This strategy may help manage your staffing costs with the ability to scale up or down as the needs require.
Whether you share staff with another business or operate with your staff, sharing office space might be another way to cut costs without compromising the service you provide. Many shared office spaces also allow you to access amenities such as parking or a prime location that you might not be able to afford if you were operating alone.
If you find that there are certain times of day when your workflow or traffic flow goes down to nearly nothing, you may want to consider closing your business during those hours or allowing employees to work remotely. By staying open only when you expect customers, you may lower your payroll expenses and even cut your energy consumption.
For most commercial properties, a large source of energy use is the HVAC system for heating and air conditioning. The U.S. Small Business Administration (SBA) estimates that HVAC systems account for about 40% of energy usage in commercial buildings.3
Having an efficient and properly-functioning HVAC system may cut your energy costs significantly. Keep up with HVAC maintenance by having your unit regularly inspected, and ensure that your air vents are free from any blockages caused by boxes or other clutter.
By utilizing a programmable thermostat that ensures your building stays comfortably cool only during operating hours and in the areas in use, you may also lower your electricity expenditures. Swapping out incandescent light bulbs with an LED retrofit4, replacing inefficient equipment, and managing your HVAC use during peak daytime hours, may also make a difference in your summer energy costs.
1 When Is the Best Time to Rent?, Avail, https://www.avail.co/education/articles/when-is-peak-rental-season
2 Laptop Vs. PC Power Consumption, Houston Chronicle, https://smallbusiness.chron.com/laptop-vs-pc-power-consumption-79347.html
3 HVAC Efficiency: What It Is, Why It Matters And How To Get Started, Alliance to Save Energy, https://www.ase.org/blog/hvac-efficiency-what-it-why-it-matters-and-how-get-started
4What You Need To Know About LED Retrofitting, Straits Lighting, https://straitslighting.com/blog/news-item/led-retrofitting/
Important Disclosures
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
LPL Tracking #1-05268284
Retirement Planning
Asset Management
Education Planning