In today’s challenging economic cycles, utilities can yield an extensive cost implication and drain on business financial performance with even the small bills impacting a business bottom line significantly. Moreover, some utilities such as water, electricity and sewerage influence the company’s image that has a sales implication. Utilities present avenues for significant saving cost and increasing the profitability of a business. Strategic streamline the business operation is the fundamental aspect of reducing utility bills whilst meeting the needs of the business. To streamline the business utilities, management could adopt a combination of both simple and technical strategies.
The streamline begins with utility audit to undercover avenues of utility consumption reduction subsequently reducing the cost implications. A utility reduction analyst. A water or energy audit for example analysis the accurate functionality of the meter gauges, errors and overcharges on the utility bills which if left unmonitored results to longer-term financial implications. An audit analyst identifies resource usage anomalies, machine performance inefficiencies, and makes recommendations for optimal strategies of reducing expense.
According to the team at UMC Solutions “A utility audit is really the first step to getting on top of your utility spending as a business, auditing is often avoided as it’s not seen as priority, but once an audit is completed it often opens up avenues to saving money that no one in the business previously knew about”.
2.Use of Smart and Low-Cost Technology
Technology is a driver of business. Almost every routine business undertakings nowadays have a virtual element. Advances such as remote desktop applications, online payment system open source software, teleconference services, among others have enabled reduction of recurrent business cost. For example, transport bills could be reduced by people engaging in teleconference meeting as opposed to physically traveling for a meetup. Using open source software alternatives reduce the cost incurred in purchasing and upgrading applications. While installation of smart appliances may result to incurring an initial cost, such appliances yield a decline in utility consumption loads Investing in smart controls ensures that utilities such as water and electricity are used only when needed.
3.Compliance with Regulation
As a response to the environmental externality cost of business, regulators have increasingly introduced environmental regulation as well as business monitoring. It’s now mandated that business have to comply with regulations such as mandatory water audits, energy audits, and embrace the use of clean and renewable sources of energy. Non-compliance with applicable local and state utility regulations results in fines and penalties. Regulations such as the clean energy use mandates that business not only relies on clean sources of energy, but as well use machinery and equipment with the most up to date resource-saving technologies.
4.Incorporate Circular Systems
Resource recycling has been established as an effective cost-cutting strategy. The closed-loop approach of business is redefining the traditional linear business model of take-use- dispose. The regenerative model ensures reduced waste, emission and maximizes output from each unit of input. Refurbishing and reusing of the business waste create new resources which reduce the resource footprint. For example, treating wastewater and redirecting it for reuse in gardening and cleaning reduces the water bill.
5.Increasing Staff Awareness
Staff responsibility is the least cost strategy for reducing cost. Some of the drivers of utility expense result from unessential consumption and excessive wastage by the employees. Incorporating a culture such as printing when necessary drives down operational expenses yielding a positive impact on the business bottom line.