Among the most vital resources for California’s small businesses to have is an accessible and affordable energy supply. From restaurants to hotels to IT firms and everything in between, energy quite literally powers the economic engine of our state.
Small business owners will tell you that making smart choices about energy use can have a positive impact on the company’s bottom line. This is true especially here in California, where policymakers have set aggressive emissions-reduction goals and placed additional taxes, fees and regulations on various energy sources across the board.
With rising energy prices inevitable, it is prudent for small businesses to take affordability measures into their own hands.
Energy bills make up a significant portion of small business expenses nationwide. According to NFIB (National Federation of Independent Business)’s Energy Consumption poll, energy costs are one of the top three expenditures for small businesses. Thirty-eight percent of small firms report operating vehicles as their highest energy expense, one-third report heating and cooling as their highest energy-related cost, while a fifth report operating equipment as their most costly energy expense.
For many, there’s no end in sight. As energy costs increase, most small business owners cannot adjust the prices of their goods and services quickly enough to match rate increases without hurting their customer base or diminishing their bottom line. Many small business owners feel as though they are at the mercy of constant and unpredictable rate increases with little to no recourse for solving the situation through their own actions.
While small business owners may not be able to control inevitable energy price increases, they certainly do have the power to take steps to protect their bottom line.
Being truly energy efficient means cutting waste and maximizing current consumption, and committing to conservative energy management. It includes simple everyday practices that can help small businesses reduce energy costs.
The potential to increase awareness about simple, proven ways that small businesses throughout the state can become more responsible energy managers and better energy consumers is one of the reasons why NFIB California has partnered with Energy Upgrade California.
Energy Upgrade California is a statewide education and outreach initiative by the state’s Public Utilities Commission and utilities, among other parties, to promote energy management concepts, energy efficiency actions and clean-energy opportunities for the state’s residents and businesses. Its mission is to help Californians take action to save energy and conserve natural resources, help reduce demand on the electricity grid, and make informed energy management choices at home and at work, all while helping benefit their bottom line.
California’s small businesses have a huge opportunity to benefit in this effort; all it takes are a few small changes, like using an electronic power strip for electronic equipment, which will help reduce phantom loads, resulting in significant savings.
Businesses can also install a programmable thermostat to save 10 percent on heating and cooling costs, choose energy-saving light bulbs and fixtures, and then switch off the lights when leaving a room. Another simple, often overlooked gesture is to shut off computers at night.
Though seemingly insignificant, these small adjustments can lead to big improvements. While energy prices continue to rise, becoming smart and responsible energy stewards will help small businesses across California save money and grow. At NFIB, we’re committed to helping our small business members thrive, and we are encouraging each and every one of California’s small businesses to take that first step toward taking energy affordability into their own hands.
You’ll be surprised at what an incredible difference it makes, both for our state and for your bottom line.
John Kabateck is the State Director for NFIB California, which represents 22,000 dues-paying small- business members.
