Cut costs, increase profit; these are two of the key principles to successful businesses. But accomplishing this isn’t always easy. You’ll need to consider and balance your customers and your cost.
There’s a not-so-popular way of reducing cost and increasing your bottom line, and that is making your company more efficient through environmentally friendly practices, such as being more conscious about supplies or decreasing energy usage. We’ll share just four of many investments you can take that will save you some money while going green
Is it Worth It to go Green?
For many businesses, yes. Green investments are a great way for businesses to reduce overhead costs, lessen their impact on the environment, and establish a competitive advantage over others in the market.
Many businesses who tried shifting to green investments have established a competitive edge over others since they’ve proven it to reduce their overhead costs while lessening their impact on the environment.
So does going green really give you a competitive advantage? According to more recents researches, yes.
- 81% of customers feel strongly that businesses should help improve the environment
- 66% of global consumers are willing to spend more money on sustainable brands. And if you’re more green than your competitor,
- 48% of consumers would probably or definitely change their buying habits to reduce their environment impact, meaning you might grow your market share
It only shows that having a business that is socially and environmentally resposible has never been more attractive than before. Green investments will improve your business’ efficiency and as an added bonus your customers will love you for it while helping the planet
Here are just a few of those green investments to start.
1. Go Paperless
While this is the more common examples of going green, some business still have difficulties shifting to paperless. To name a couple, these practices include,
- scanning and storing important paperwork digitally
- utilizing online sharing of documents instead of printing
It may look simple at first, but the money you’ll save will be more apparent when you account the paper itself, to the expensive ink and toners and not to mention the recycling and disposing of paper
Let’s talk numbers, how much can you save from all those paperless practices? A study suggests that an average business spends atleast 4000php per employee on paper each year. This is exclusive of all those filing and storing those documents which also takes up space and resources.
Going paperless could also help the environment, since paper manufacturing is the third-largest user of fossil fuels in the world. Save money, save trees and save the planet.
2. Consider Telecommuting
The truth is, telecommuting isn’t practical for every role in a business but giving consideration to its contribution and money-saving advantages, it opens your business up for more job candidates and a more effective work force.
If you’re concerned that giving your employees the freedom to work unsupervised would lead to a downturn in productivity, research suggests the opposite. Because employees have more freedom and can limit distractions, 86% of them believe they’re more productive at home.
By taking cars off the road, you’ll be saving the planet from a substantial amount of greenhouse gases as well.
3. Reduce Electricity Consumption
Just like everything else, electricity rate continue to increase every year. Electricity also occupies a big portion of your business’s overhead. So much of what you do in a typical business setting depend on electricity. In recent years, there was already an increase in the demand for more energy efficient substitutes for lights, airconditioning and other office essentials
More Efficient Lights
Replacing you lights with more efficient bulbs (eg. LED and CFL) may be a bit of an investment at first, but with a longer lifespan and less energy consumption, it will give you a significant payback over time
Control the Thermostat of Your Air Conditioning
While the savings depend on your electricity rate and how large your building is, it can be an effective method to reduce costs without a substantial investment or adjustment. According to the Department of Energy, you can cut your electricity bill by 1% for every degree higher in an eight-hour period
4.Generate Free Energy For Business
With the increase in availability of more affordable sources of alternative energy, many businesses now have an option generating their own power and taking control of their electricity bills. It may be a big investment upfront but this will result in a substantial payoff in the long run may it be wind turbines or solar panels.
Most solar panels for example have atleast 25+ years lifespan, which means it will give you free electricity to power your business for decades.
When it comes to going solar, it’s not atypical for our commercial customers to see ROIs in the double-digits. With solar energy, a profitable investment is mainly dependent on two things: utility prices going up, and the sun shining. We think your odds are pretty good.
Making Green Investments for Businesses That Save Money
While effective cost-saving changes for your business can seem like a big undertaking, it all starts with a simple step. Whether that’s taking control of office supplies, controlling the amount of energy your business uses, or taking electricity production into your own hands, making these environmentally friendly investments can cut overhead costs and save you money.
If you’re a small business or a large company, you’ll be reducing the impact you have on the environment, and that will get your customers excited about your company.