Major Business Expenditures That Affect Your Bottom Line
There are very definable expenses common to most small-business owners. Labor costs, facility lease or depreciation costs, materials, and energy costs are some of the major expenses that you may need to monitor closely.
Labor Costs
Some may argue that labor costs are difficult to affect in a tight labor market due to competitive pressures. Many business owners would tell you that in today's marketplace, eliminating human resources is a short-sighted strategy, and not sustainable. As such, reducing labor costs can be challenging in today's business landscape.
Facility Costs
Facility costs are also difficult to affect due to long-term lease contracts and the increasing price of real estate. Many companies view this type of cost as a period fixed cost.
Materials and Energy Costs
Supply chain experts can certainly execute strategies that can extract vendor cost reductions that can improve your bottom line. In terms of energy costs, companies have historically assumed that these costs were similar to a tax and cannot be materially reduced. The reality is that many companies have already discovered that managing, controlling and reducing their energy costs is an effective way to improve the bottom line.
How Smart Meters Can Help Energy Manage Costs
ComEd is installing smart meters throughout Chicago and northern Illinois. By the end of 2018, all homes and businesses will enjoy the benefits that smart meter-enabled technology provides. A smart meter requires no action from you. ComEd will install a smart meter in the same location of the existing meter at your building or business. Once you have a smart meter installed, you can access more of your energy-usage data online – no need to wait for your monthly energy bill. With this information, you can monitor your energy use and make changes that can save you energy and money. You can also enroll in free, online energy-management tools and programs.
Developing an Energy Plan
In today's world, you cannot afford to fly-blind when it comes to business energy costs. The introduction of the smart meter provides you access to the data and tools you need to minimize what could be one of your major business expenditures on an on-going basis. If you're interested in developing an energy plan or if you already have an energy plan in place, ENERGY STAR® offers a free action workbook to make the most of energy management for small businesses.
Want to learn more about how smart meter-enabled tools and programs can help your small business save? Contact ComEd at 866-368-8326 or visit ComEd.com/BizSmartMeter.
For more tips and inspiration for small business owners,
visit CBS Small Business Pulse Chicago.
