Bootstrapped companies need to operate on tight budgets. They need to find every possible venue to cut costs. Fortunately, they can cut expenses by going green. Even companies like Bank of America and McDonalds are taking advantage of these cost-saving ideas. Here are some ways that businesses can save money by going green.
Cutting Energy Expenditures
Energy costs are a tremendous burden for many businesses. As we near peak oil capacity and run low on other limited resources, we are going to start seeing energy costs rise.
Relying on green energy can be a great way to save money. One study found that hospitals that rely on green energy can save $15 billion over the next decade.
Boosting Employee Productivity
Cash-strapped companies need to make the most of all of their resources, including human labor. Boosting employee productivity is key. A study from UCLA found that employees at green businesses are 16% more productive. However, it is difficult to identify the root cause of the higher productivity. Nevertheless, the benefits are indisputable.
Save on Insurance Premiums
Believe it or not, many car companies are actually offering incentives to companies and consumers that drive environmentally friendly vehicles. You should learn more about these premium discounts and see if you qualify. If your insurer doesn’t have a green driving credit discount, then you may want to compare policies with another.
Reduce Paper Waste
Paper is a major cost for most businesses. According to recent studies, businesses pay over $120 billion on paper forms every single year. These costs are higher for some companies that do a lot of manual processing for their customers, instead of using online forms.
You can save a tremendous amount of money by reducing your dependency on paper. Make sure that you find a system to cut paper waste as much as possible.
Qualify for Government Credits
The federal government offers a number of credits to businesses and consumers that take reasonable steps to be more environmentally friendly. You will want to research these grants and credits as much as possible. Some state governments also offer these types of credits. You may be able to save $1,000 or more a year by installing solar panels or using other green solutions for your company.
Better Financing from Investors
Many investors are more willing to invest with companies that go green. There are several reasons:
- More investors are considering their own ethos when lending money or purchasing equity these days.
- They recognize that stricter environmental regulations are likely to be enacted in the near future. Companies that don’t comply with these standards are more likely to face regulatory sanctions or have to pay a significant amount of money to improve their infrastructure.
- Green companies tend to be more cost-efficient, which reduces the risk for investors.
This can help your company in a couple of ways. You may be able to qualify for lower interest rates, which will save you a lot of money for the duration of your loans. You can also acquire capital that is more cost-effective than what you currently use.
Going Green is a Good Way to Cut Costs
Going green isn’t just good for the environment. It is also a great way to save money for your business as well. Look into all green options and try to see how you can save money with them.