Energy Edge Solutions

Financial Choices for Companies in Good Times and Bad

By Bill Poulos
Energy Edge Solutions

 

Revenue

So, you’re a CEO, CFO or COO of a company struggling to generate demand for your products or services.  You decide on a new or tweaked strategy that will get your revenue on the right track, back to growth or new areas for growth.  You implement the changes.  While efforts are continuing to make the behavioral and tactical improvements to achieve the goals and objectives you have set forth in your strategy, you begin to look further into what else can be done to improve the company financials.

 

Profitability

Whether or not your company is grappling with revenue issues, you and your Board are always interested in ways to improve profitability.  You look more closely at where you can cut the fat, if there’s any left to cut. Your largest operating expense is your employees.  Like many companies in America in the recent and not so recent past, you consider starting a new round of budget cuts in salaries, benefits and even people. Can you really afford to cut or possibly discourage your troop’s way to more productivity?

 

Energy Expenses

If you house your organization in expansive facilities, another large operating expense is your monthly/yearly/ever-present electric bill.  What can you do about that, the power company has a monopoly in your geography as it does in most.  The least expensive steps you can take are to ask employees to turn-off lights and reduce the comfort level of the thermostat setting.  Have you ever walked into a government, commercial or industrial build that is dimly lit or is too warm and stuffy, or even too cold during the winter.  Not a very attractive place to visit, let alone work.

 

Technical Solution to a Financial Problem

You may want to consider the things you can do to reduce your power consumption that give you an attractive payback and ROI.  Treating your motors, lighting, HVAC and refrigeration systems can give you the best bang-for-your-buck, when the proven approaches and technologies are engineered and installed properly.  It may also help your decision to move forward with such a project if it is guaranteed every step of the way, including your continued savings after the installation and throughout your payback period.  In terms of savings, the project should result in the gift that keeps on giving, for a couple of decades.

 

Caveat Emptor

Words of caution, when considering such a solution, make sure that you award your project to an engineering firm with experience in designing, installing and guaranteeing your project and results.  And be certain you are not hiring a performance contractor or a company that has you sign a long-term contact sharing in your savings for a decade or more by replacing your hardware with insufficient new motors, lighting, HVAC or refrigeration.  Otherwise, you could be better off dimming the lights yourself!

 

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