Riding Out High Gas Prices At Your Small Business

Gas Expenses Hurt Small Business
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Unless you bike to work, you’ve probably noticed that gas prices are astronomical right now. This blogger cringes every time he hits the pump, frankly.

If you’re a small business owner who depends on travel, this has been news most unwelcome. The L.A. Times chronicled the unfortunate circumstances of several small businesses who are getting figuratively snowed by the increases, which have put gas prices in the metropolis up over $4 a gallon. That’s steep.

On the other hand, it’s entirely possible this is just a blip on the radar. Gas prices were galloping toward $4 a gallon in New England last year before they cooled down significantly, bringing the price down to close to $3.

Either way, you have to deal with in the here and now. We have a few handy tips for surviving high gas prices if you’re dependent on vehicles to get your business done.

Riding Out Gas Prices

  • When possible, make deliveries in batches. Not necessarily prudent if you’re a pizza shop, but if you can send everything out in one vehicle at one time, you’ll save yourself some gas money. It’s worth thinking about taking some of your fleet of vehicles off the road for a little while.
  • Stay close to the office. If at all possible, hold meetings with clients via the Internet, or suggest a meeting place close to the office. Any business that you can conduct without putting miles on your company vehicles should be strongly considered.
  • Keep a close eye on projected prices. You may be putting $20 in because you can’t bear to part with more of your hard-earned money, but if gas prices continue to rise, you’ll wind up costing yourself more in the long run. To the extent that it’s possible, be a student of gasoline prices and plan your re-fueling accordingly.
  • It’s an expensive purchase in the short-term, but electric vehicles can save you a ton of gas money in the long run. If you have the capital to do it—or you can get equipment financing from Direct Capital—it’s worth a shot.

For those who have businesses who simply can’t avoid the impact of higher gas prices…well, we really feel for you. Hopefully these high prices disappear in the near future.

What are your thoughts on the issue?

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