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3 ways to increase your business profits

You can make profits by cutting your costs 171 6015525 0 14103287 300

In the recent government budget speech, MP Joe Hockey announced that 96 per cent of businesses in Australia are small operations with an annual turnover of $2 million or less.

The government labelled this group as the "engine room of Australia", as it contributes over $330 billion to the nation's annual output whilst employing over 4.5 million people.

In an effort to remove the heat from expenses like high electricity prices, the new budget announced some tax concessions for small business owners. But there are other ways to save money.

According to the Victorian government, savings of more than 50 per cent can be achieved simply by improving your business's energy efficiency.

Here are some tips on how to reduce power consumption from your business, consequently increasing profits by decreasing costs.

Standby power can be a serious contributor to your consumption.Standby power can be a serious contributor to your consumption.

Get staff involved

One of the first things you should do is engage your employees. Whether they're family or not, get them on board so that saving energy is a shared goal. According to the Energy Efficiency and Conservation Authority NZ, 50 per cent of the energy used in office buildings is manageable by the staff. You can make significant savings by changing your business's behaviour and attitude towards power consumption.

Reduce appliance usage

Of all the appliances, the Department of Industry and Science found that the fridge freezer consumes the most power. Thus, it would be to your great benefit if you are for example able to empty a semi-full fridge into another and then unplug the vacant one. At the end of each work day, aim to switch off all appliances at the wall if possible.

According to the Department of Industry and Science, a lot of appliances continue to use electricity even when turned off as they are drawing stand-by power. In an average household, this consumption can add up to 10 per cent of the power bill.

Lighting

Research from the Victorian government shows that an energy efficient lighting arrangement can result in as much as 80 per cent less electricity consumption in some cases. While the new lighting will cost you a bit more up front, energy saving specialists enLighten found that because of the cumulative savings, you could be cash flow positive within two years after your investment.

If you are serious about reducing your power consumption and saving money, you should talk to the experts at Make It Cheaper. They will compare electricity prices across Australia's leading energy suppliers to ensure your business gets the best deal - all at no cost.

Posted by Nikki Wilson-Everett