Tips for Cooling Your Small Business with Energy Star

With the summer fast approaching, now is the perfect time to invest in an eco-friendly workspace. The Environmental Protection Agency recently put out this list of tips to help small businesses keep a comfortable work area while saving energy and protecting the environment:

5. Turn off lights and equipment when not in use and use Energy Star qualified CFLs wherever appropriate. High utility costs are often a result of paying for energy that is completely wasted by lights left on for long periods while not in use. CFLs use 75% less energy than standard incandescent bulbs to provide the same amount of light, last up to 10 times longer, and generate less heat than conventional light bulbs.

4.Use fans to reduce the need for air conditioning. Energy Star qualified ceiling fans can cut energy use — circulating air can make a somewhat higher temperature and/or humidity feel more comfortable. In fact a temperature setting of only 3 to 5 degrees higher can feel just as comfortable when fans are used. So turn the thermostat up several degrees while using the fans to deliver the extra cooling comfort. A ceiling fan cools you - not the room - so remember to turn the fan off when you leave the room.

Each degree of higher temperature can save about 3% on cooling costs. When the temperature outside is more comfortable than inside, a “box fan” in the window or large building fan in the attic can push air out of the building and pull in comfortable outside air.

3. Install an Energy Star qualified programmable thermostat. Install as Energy Star qualified programmable thermostat to automate your air-conditioning (HVAC) system and save energy while your small business is closed or unoccupied. This solid-state, electronic device automatically adjusts temperature settings based on your schedule, and can be “overridden” as needed for unscheduled events. This “smart thermostat” can turn on the HVAC one hour before arrival and keep it off or at a higher, more energy- efficient temperature on weekends instead of heating or cooling unoccupied space.

2. Schedule annual, pre-season maintenance checkups with a licensed contractor to ensure your cooling system is operating efficiently and safely. “Tune-up” your heating, ventilating, and HVAC system with an annual maintenance contract. Even better, have your HVAC serviced prior to both heating and cooling seasons.

A new Energy Star qualified HVAC system, like a new car, will decline in performance without regular maintenance. A contract automatically ensures that your HVAC contractor will provide pre-season tune-ups before each cooling and heating season. You save energy and money, and your system may last years longer with reasonably priced yearly maintenance fees. Your chances of an emergency HVAC break-down also become very remote with regular maintenance. Change (or clean if reusable) HVAC filters every month during peak cooling or heating season.

1.Use Energy Star qualified products. Energy Star qualified products are a good business investment. Products that display the Energy Star label operate more efficiently, save energy, and help protect the environment.

How Does the Economic Stimulus Act of 2008 Effect Your Equipment Purchases?

In an attempt to revitalize a slowing economy, President Bush signed into law on Feb 20th the Economic Stimulus Act of 2008. Thanks to this new set of policies, lower and middle income taxpayers stand to benefit from additional rebate checks and an easier time refinancing their mortgages.But taxpayers are not the only ones benefiting. The ESA temporarily reinstates a first-year depreciation deduction equal to 50 percent of the cost of the equipment. Qualifying equipment and other fixed assets must be purchased after Jan 1 2008, and put into use by Dec. 31, 2008. During this period, a business may claim an additional first-year 50% depreciation deduction on purchased assets plus the normal first year depreciation deduction (which is 20% for 5-year assets) on the remaining net cost.

Another noteworthy change to the tax code involves a significant increase to the Section 179 expensing limits. Previously, the limit on equipment purchase deductions was $128,000, and the total cost of equipment purchased could not exceed $510,000. The Economic Stimulus Act of 2008 has almost doubled the deduction cap, to $250,000, and raised the total allowable cost of new equipment purchases to $800,000.

Though experts disagree regarding the effect the Economic Stimulus Act of 2008 will actually have on the economy, one thing is clear: if you own a small business and are need of new or additional equipment, now is the time get it.

The Benefits of Server Virtualization

If your business depends on multiple server applications, and you are looking for ways to cut costs while improving efficiency, then server virtualization is the way to go. Through server virtualization, multiple server applications (10 is about average) can be consolidated onto one physical server. Each virtual server is then isolated from the physical system via virtual processors, interrupts and devices.The benefits of server virtualization are many. Firstly, you can maximize your current hardware and software capabilities while preserving integrity of the entire system. Since each virtual machine is a separate entity, if one application crashes, there will be no impact to the other applications running on that same physical server.

Another major benefit to server virtualization is the impact it will have on your efficiency. Management tasks can be automated and controlled from a single point. Maintenance also becomes easier as virtual machines have the ability to be shut down, transferred across the network to a new physical server and accessed instantly.

Server virtualization also brings about significant savings. Not only do you save on physical floor space and having to buy a lot of hardware, but you also save money on maintenance, energy, and installation.

2008 Trends in the Acquisition of Construction Equipment

According to the 2008 Wells Fargo Construction Industry Forecast, even with signs of a slowing economy American contractors are looking this year to buy, lease, and rent additional construction equipment. The forecast, which was conducted last fall, was based on more than 1,150 telephone surveys with executives of construction contracting companies and construction equipment distributor firms throughout America and Canada. According to those surveyed, 37% of contractors expect to make equipment purchases in 2008, which is only 5% fewer than the previous year’s forecast.

What are contractors buying?

A third of contractors who plan to buy construction equipment are considering both new and used equipment, up from 19% with similar plans a year ago. Almost half of contractors plan to buy only new equipment in 2008, while 20% are looking to purchase only used machinery.

Thirty-eight percent of the contractors who plan to invest in equipment in 2008 expect to purchase at least one highway truck. The most common expected purchases among contractors include: hydraulic excavators, rubber-tire backhoe loaders, wheel loaders and crawler dozers.

Trends in leasing and renting

According to the industry forecast, the percentage of contractors looking to rent or lease equipment in 2008 is expected to rise to 19%. Just over half of contractors find renting or leasing a good alternative to purchasing construction equipment, especially for equipment that is not often used. One-third said they rent to meet unexpected needs, and 21% said lower cost makes renting an attractive option.

Contractors rent or lease a wide range of equipment including: loaders, backhoes, dozers, forklifts and fork trucks

Finance issues

Over half of contractors (55%) and almost half of distributors (49%), said cash flow was one of the construction industry’s most serious problems for 2008. More than half of each group also considers profit margins and cost of capital to be serious issues.

When determining the right financial services provider, several factors are considered important. Top on the list was personal experience with the provider (89%), followed by construction industry reputation (81%), and interest rates (79%).

How to Keep Your IT Costs Low

With the possibility of an economic recession looming in the not-to-distant future, many small business owners are taking a preemptive look at the way they do business with the goal being to maximize their operations while simultaneously reducing expenses. Since IT is often a major cost center, knowing how to effectively reduce expenses while still getting necessary hardware and software systems is an essential element in recession-proofing a small business. Here are a few tips on how you can keep your IT costs under control:

• Get advice. Seek the advice of a professional IT consultant or any person who has experience either in your industry or in the technology you want to acquire. This is especially important if you yourself are not so tech savvy or if you do not have the time to research your options.

• Plan ahead. Get equipment that has the capacity to handle future growth or that can be easily upgraded.

• Evaluate and prioritize. In order to streamline your IT expenses, you will need to periodically reevaluate the equipment needs of your business versus your available resources. Where possible, you could consolidate equipment, as for example in server virtualization, or set up a system of rotating equipment among employees.

• Look into leasing. Instead of tying up precious capital in the purchase of new equipment, you could try leasing. With leasing, usually only a small initial down payment is needed and the cost is spread out over several months or years. Moreover, many leases come with option to upgrade at the end of the term. This allows a small business to get the equipment it needs even as its needs change.

• Maximize tax deductions. With the planned purchase or lease of new equipment, you can take advantage of several tax breaks. Section 179 of the tax code, for example,gives a small business the option to entirely write off most of its new equipment and furniture in the year that it is put into service rather than depreciating it over a few years.

• Consider outsourcing. Some technology solutions, such as IP communications and network security, can be outsourced to a professional service provider who can design, implement and maintain the technology solution for your business. The service provider will either host the equipment on their premises or support and maintain the equipment at your site.

Welcome to the LeasingIdeas.com Blog

We are pleased to introduce our official Business Technology and Commercial Equipment Blog.

The pupose of the Blog will be to provide interesting and informative information, news, opinion, and articles about business technology and commercial equipment.  

We encourage you to comment and contribute, and hope that you get the most out of this newest addition to www.leasingideas.com.

Enjoy!