All successful businesses have good control over their finances. It stands to reason that money is not wasted by businesses on unnecessary expenditure. It is possibly true that every business could save a little here and there if they really tried to. However as experienced accountants, we will not insult you by suggesting that you will have a significantly better business if you can save 5% of your electricity costs or 10% of your stationery costs.
The focus of many businesses is, quite rightly, placed on customers. This includes customer service, marketing, pricing and consideration of the products and services provided.
However, what if [intlink id=gas]gas[/intlink], [intlink id=electricity]electricity[/intlink] and fuel costs were to continue to rise significantly? What if all of your suppliers had to pass such costs on to you? Likewise waste, what if land fill costs rise again? And [intlink id=water]water[/intlink] rates continue to spiral? These costs, all related to the environment, are the very items that are increasing at a rapid rate.
By addressing your business’ environmental impact you are likely to reduce fuel, energy, water, waste disposal and print costs. And whilst the savings may be relatively small now, the benefits in the medium and long term could be a lot larger than you may think. By getting into a mindset of a little extra care in these areas, and taking some of the measures we suggest, you will better placed in the future, compared to businesses that ignore these issues. And if you insist that your suppliers also address environmental issues, then they will have less price increases to pass on to you.
Environmental matters also closely relate to business efficiency. Paperless (or nearly paperless) systems not only reduce stationery costs but also allow much quicker retrieval of information. Taking the train to central London is often quicker than the car, needs no parking and gives you time to catch up on reading or telephoning. Reusing and refurbishing existing equipment may allow work processes to continue without the need for expensive down time, installation and training. Reducing staff turnover (addressed more fully in [intlink id=happy-stakeholders]), is a huge efficiency boost.
Considering business environmental impacts can save money and increase efficiency. This is particularly so in light of the rapid increase in costs of utilities and services. Addressing your own business’ impacts, and looking at your suppliers’ environmental statement, are two areas that will benefit your business.