Any successful business owner will tell you that poor management of utility, such as water, electricity, and gas is the reason most businesses fail. In fact, the CB Insights survey shows that 18 percent of new businesses don’t make it past their first anniversary because of utility cost issues.
There are two problems with not managing your utility costs: You pay for what you haven’t consumed because of unscrupulous utility providers and your overall costs skyrocket. All these eat into your profit margins.
While you can manage your utility yourself, it becomes difficult when the business scales up. That’s why it’s a good idea to hire a utility management company to do it for you: Here are the main reasons to hire a utility management company to manage your utilities:
- They have extensive experience and expertise in utility management
Most utility management companies have extensive experience and expertise in doing utility management work. In fact, they have certificates from local and federal government and testimonials from happy customers to prove that. They can diagnose your utility system using the latest technology and tell you the causes of your utility problems. They will then compile a detailed report, along with the required corrective action plan to ensure the cost of your utility bills remains below the required threshold.
According to the team at UMC Solutions “Unlike other types of bills, utility bills can be overly complicated and can fluctuate from month to month. Left unchecked they can easily spiral out of control and become an expense-blindspot for any businesses.”
- Saves you money
Most business owners think that managing utilities themselves is the best way to save money. While this makes sense, the reality is that the tasks involved in utility management are so complex that it can be overwhelming any business to do it themselves. The right utility management company will evaluate the current condition of your utility system, present the results, draw up and implement an improvement plan and ensure the situation doesn’t reoccur. This will save you money that you would have wasted on in-house utility management personnel who may not have a clue of how a utility system works, do a mediocre job that leads to the reoccurrence of the problems.
- Saves you time
Time is a very important resource in today’s competitive business environment. Any minute you waste means a competitor is closing the gap on you or surpassing you. Utility management is a time-consuming and energy-draining task. It involves going through your utility data to pinpoint problem areas, cultivating good relationships with utility suppliers to get the best deals, making timely utility bills payments, and formulating an efficient utility management strategy. All these can take a big chunk of your time. That’s why it’s a good idea to hire a utility management company to do it for you and allow you to focus on other activities that have the potential to bring greater profitability to your business.
- Help you know the market dynamics
The utility market trends change frequently. For example, energy costs drop periodically and utility providers are required to respond in kind by lowering your energy costs. If you don’t keep an eye out on the energy market trends, you might not be able to enjoy the low energy costs because your utility provider may take advantage of your ignorance and not lower your utility bills. The right utility management company will keep an eye out on the utility market trends and tell you when energy costs subside. They will also follow up with the utility services providers to ensure that it actually reflects on your monthly utility bills. The utility company will also tell you the utility providers that are using the latest technology to ensure the efficient distribution and management of utilities. The company will also keep you updated on the current and new energy legislation to ensure you operate within the confines of the energy laws.
- Ensure prompt payment of utility bills
Late payment of utility bills can attract fines and add up your costs. On numerous occasions, late payments occur because you were too busy to remember to pay the bills on time. Besides tracking your utilities, a utility management company will ensure all your utility bills are paid on time to prevent penalties or accumulation of bills, all of which add up your overall cost. When businesses want to increase their profit margins, they have two realistic options: Cut costs or increase sales. The latter is uncontrollable. That’s why most business owners slant towards cutting costs. And when it comes to cutting costs, many business owners prefer to start with utilities. While you can do it yourself, hiring a utility management company is advantageous because it not only helps you cut utility
Useful Reference Links