From optimizing energy use to investing in sustainable solutions, startups can reduce their monthly electric bills. If you’re looking for ways to deal with the rising energy costs and make your startup more energy-efficient, there are a few key ways to do this.
Energy costs largely contribute to the running costs of a startup business, especially startups that rely heavily on manufacturing and technology. As prices rise, startups are forced to allocate more funds to utilities. This financial strain can slow down business growth and make it harder to compete in the market.
Many startups face financial uncertainty in their early years, and rising electricity costs add another layer of unpredictability. Some startups may delay expansion plans or even freeze hiring to offset increased expenses. In extreme cases, startups may have to raise prices, impacting customer retention and brand competitiveness.
Photo by Federico Beccari on Unsplash
As energy costs continue to climb, startups are pressured to find sustainable solutions to keep expenses manageable. While adopting energy-efficient methods will help lower costs in the long run, the initial investment in the tools to support this process can prove challenging. However, acquiring all the necessary tools will give you a competitive advantage.
The financial burden of rising electricity prices can feel overwhelming. However, startups that take strategic steps can mitigate the impact and build a more resilient business model.
A good general rule is that if your hot water setting is too hot for you to wash your hands comfortably, you can turn it down. Adjusting the boiler’s temperature is a simple solution to your energy woes.
In a startup business, you might not need hot water for a full day, so installing a timer on your boiler is another simple way to ensure your boiler isn’t using more energy than it needs to.
You may not realize it, but lighting is one of the easiest ways to improve energy efficiency. Replacing your conventional light bulbs with LEDs will drastically reduce your lighting's energy consumption.
Another key thing to consider about your lighting is how often it’s used. If you forget to turn the lights off when you leave a room, consider installing motion sensors in the lights. That way, the lights automatically turn off when there’s no motion detected in the room. Doing this might save up to 70% of your monthly energy.
Similarly to your lighting, you likely don’t need to use all your electronics all day. Instead of allowing them to idle when not in use, turn them off so they don’t consume energy.
When you close up for the day, power off all nonessential devices so they don’t use energy unnecessarily throughout the night.
With electric prices rising, you must set goals for how much energy you want to save each month and plan how you’ll do it. This will give you a solid idea of how to move forward with your energy-saving methods.
While your business is still small, your goals don’t have to be complicated to achieve. Ensure your goals are realistic for your business so you aren’t discouraged by being unable to meet them.
Setting a budget is a great way to stick to your monthly saving goals. Adhering to your budget can help you reach your goals more quickly, motivating you.
Build a budget that can save you money without compromising the business. If you’re stuck on how to create a budget, technology can be helpful. For example, if you’re using a budgeting app, make sure it can track your budget with the right data and metrics and help you stay on top of your goals.
Start consistently reporting the energy you’re using and where it's used in the business. Doing this will allow you to save money by targeting your energy savings based on what you use most.
A report will also allow you to adjust your energy usage accordingly.
One of the most effective ways to save on electricity costs is by transitioning to renewable energy, such as solar. Since solar power relies on the sun, you can minimize energy costs by becoming independent of the electricity grid and saving energy in batteries for future use or to sell. This can also prove to be a lucrative venture for your business if you decide to lease part of your property to produce clean energy.
While rising electricity costs pose a significant challenge for startups, they also present an opportunity to build a more efficient and sustainable business. By taking proactive steps, startups can reduce expenses and improve long-term profitability.
Adapting to these changes not only helps with cost savings but also positions businesses as forward-thinking and environmentally conscious. The key is to act now, implement smart energy strategies and stay ahead of rising costs before they become a major financial burden.
* This post is written in collaboration with our guest contributor, who has financially supported its publication.
Cover Photo by Anthony Indraus on Unsplash
Alex Quin is a full-stack marketing expert and global keynote speaker. Founder and Chief Marketing Officer of UADV Marketing - a member of the Forbes Agency Council.
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