An entrepreneurial spirit will help you break away from the rest of pack committed to the Monday to Friday commute. It will set you free from the chains of the nine to five. And if you do the right things in the right order of importance, it will pay off on an impressive order of magnitude.
Still, it’s not enough to come up with an idea you can monetize, raise funds to launch your dream business, and open up an office or shop. Things can quickly go wrong if you don’t have a conservative attitude and do your best to guard against unnecessary costs.
Do the Math
Imagine for a moment that you have opened up a small retail business to sell a product that is in high demand. On the basis of a solid business plan, you have managed to secure a handsome business loan. You have also hired the right staff after an extensive interview and have invested in the right technology after broad research. Is this enough to ensure success?
Maybe, maybe not.
It’s not enough to set up everything in the right way. It’s not enough to sell a product people love. And it’s not enough to understand how technology is shaping the future and investing in everything you need to run an efficient business.
Your dream can turn into a nightmare if you don’t keep a sharp eye on the inflow and outflow of cash through your business.
The math is simple. Profits (p) have to exceed costs (c), or p > c.
One huge way to load the dice in your favor is to cut costs on services related to electric energy without compromising on your energy needs. You can save on business costs through energy deregulation and by going green.
Cutting Costs through Energy Deregulation
Depending on where you live, you might be able to enjoy the benefits of energy deregulation. In some areas of North America, energy remains regulated while in some states and provinces deregulation has taken place.
What is Regulation?
Regulated prices mean that pricing is predetermined by a government agency or other regulatory authority. Prices are set for electricity supply and natural gas, as well as the cost to transport and distribute these commodities. As a consumer, you have no choice but to pay the rates decided by the utility companies. You don’t have the option to shop around for a lower price from a number of energy providers. In other words, we’re talking about a monopoly.
What is Deregulation?
Deregulated prices mean that pricing is not fixed in advance. It is no longer predetermined by a government agency or regulatory authority. Prices can vary for electricity supply and natural gas. As a consumer, you have choice and can shop around for the lowest price offered by a number of energy providers. In other words, we’re talking about a free market economy.
A Working Example
Over the past 30 years, Alberta, Canada has transitioned into a deregulated system. Many independent energy companies cooperate with each other to fulfill consumers’ energy needs. This is a departure from the previous energy system, in which utility companies controlled every aspect of the energy business from generation to distribution.
The site AlbertaEnergyProviders.com explains how this works: “Generation companies harvest natural gas or produce electricity, competitive gas and electric providers sell that energy to Alberta consumers and utilities deliver the supply to individual homes and businesses. If you live in a deregulated area, you may opt to shop around for energy rates in Alberta from competitive suppliers.”
How to Shop
If deregulation is available in your area, you should take the following steps to shop for the most cost-effect supplier:
First, know your current rate so that you have a basis for comparison.
Second, secure a large number of quotes. If you have many different energy plans available, it doesn’t make sense to limit yourself to just one or two choices.
Third, review the different rate structures. The best way to recognize a great energy plan is by first understanding the structure of the rates.
Cutting Costs by Going Green
If you’re fortunate enough to live in an area where there is energy deregulation, or if you decide to move to an area where it’s available, you can save even more money by going green.
You may have heard the slogan about how going green (becoming an energy conservationist) saves green (the money in your pocket). The reason this is true is because the more you can lower the utility costs for your store, office, or home business, the more money you will have available to grow your business. The way to lower this utility bill is to manage your energy with greater efficiency.The experts at Summit Point Roofing informs us that there are many ways to make your building more energy efficient including but not limited to, installing energy efficient windows, solar roofing or heat controlled insulation.
Energy.gov suggests some easy ways to save energy, like installing a programmable thermostat to manage your heating and cooling systems, turning electronics off when you are not in the room, and using products with an ENERGY STAR® label. They say, “ENERGY STAR products meet strict efficiency guidelines set by the U.S. Environmental Protection Agency and the U.S. Department of Energy.”
Save More, Grow Faster
While you will need to save costs in many ways to run an efficient enterprise, saving on the energy you need to keep the lights on in your business will give you a jump start and help you prosper.