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Are rising energy costs cutting into your bottom line? You're not alone.

Across Canada, small companies are searching for ways to contain fuel and electricity costs without causing disruptions to supply chains and customer service.

The situation is even worse for small businesses in rural and northern Canada, and for companies in the agri-business, transportation and wholesale trades, where fuel and energy are the lifeblood of business. For example, many greenhouse growers are reporting massive increases in fuel costs that may affect the viability of some in the industry.

The majority of small business owners adopt energy efficient strategies for one or two reasons: because they are encouraged to do so by an important business partner or because it will make their businesses more efficient and more profitable, says Bruce McConnell, vice-president, BDC Consulting.

"If you're already into the supply chain of a large corporation then you are likely to be encouraged to develop an environmental strategy," he explains. And, he adds, if joining a supply chain is in your future, companies would be wise to implement environmental initiatives now to shore up their green credentials.

Businesses who sell directly to consumers are also under increasing pressure to demonstrate solid environmental practices. "Don't underestimate the importance that environmental friendliness will have in the coming years for all businesses," adds McConnell. "It will become a differentiating factor in developing new markets."

Whatever the motivation, it appears most Canadian businesses are responding. Eight years ago, energy conservation didn't even rank as a top environmental priority for small and medium-sized enterprises (SMEs), according to the Canadian Federation of Independent Businesses. By 2007, however, CFIB members cited it as their second most important environmental issue, after recycling of materials. The CFIB's Achieving Eco-Prosperity survey found that 83 per cent of SMEs have implemented energy conservation changes, and that another 8% planned on doing so within the next year.

However, most surprising from the survey is what motivates smaller companies to jump on the green bandwagon.

"It isn't primarily the cost savings," explains CFIB president Catherine Swift. "By far, the most important reason SME owners make changes is because they personally believe it's an important thing. The environment is important to them as a person, not just as a business."

Where to start

Rule number one, says Swift, are solutions that are relatively easy and affordable for small companies to implement. "These business owners are time-starved and often have limited resources. Expecting people to digest mountains of information from multiple sources simply isn't practical."

As evidence, she points again to the Achieving Eco-Prosperity survey which identified three main reasons why one in six SME owners has yet to adopt even minor green practices: lack of information, lack of funds/too expensive and too complicated.

As a first step, business owners should develop a solid energy savings plan. You may want to consider hiring an environmental consultant who will review everything from the layout of the operations to workflow processes and infrastructure and recommend modifications that could reduce your energy consumption.

You can also try developing a green plan on your own. CFIB's Going for the Green offers small manufacturers a simple, do-it-yourself approach that maps eight essential areas of your business. It outlines where to look for waste, and how to find solutions.

Another resource is the Leadership in Energy and Environmental Design Green Building Rating System (LEED). This market-based rating system measures the energy and environmental performance of your building, helping entrepreneurs to identify green design strategies, as well as measure and monitor progress.

If you rent space for your business, you may want to consider entering a "green" lease. In June, the Real Property Association of Canada released the first green office lease for the Canadian commercial real estate industry. The National Standard Green Office Lease enables landlords and tenants to set targets for energy, water, indoor air quality and recycling, and enables landlords to carry out "green" renovations to existing building stock.

While most SME owners have implemented some changes, about one in six has not yet done so. The main reason: cost. McConnell says BDC is geared up to provide financing to help small companies reduce their energy costs.

Simple steps businesses can take to save fuel and electricity

Buy vehicles that are fuel efficient or use alternative power sources.

Plan deliveries and pickups carefully, to minimize driving.

Keep your vehicles and other equipment well maintained.

Educate drivers about fuel-efficient driving, for example, driving at the speed limit, lessening idling time, keeping tires inflated.

Purchase energy-efficient equipment. It can save you up to 75% in energy costs.

Turn off equipment, computers, monitors, photocopiers and appliances when they are not in use.

Install occupancy sensors on lights in less-used areas.