What Is the Average Utilities Cost for a Small Business?

Small Business Loan Request Letter What Is the Average Utilities Cost for a Small Business?

Keep Track of the Average Utilities Cost for a Small Business

Having a small business might have seemed like an excellent idea before you founded your own company. Problems can start once the startup costs start piling up and you are no longer sure how to stay on track with your monthly budget.

To avoid financial problems, you need to keep track of total expenses, including the average utilities cost for a small business. If you realize you need assistance covering your expenses, you should make a savings plan or choose a loan for your startup or small business.

This article provides a breakdown of common factors that influence utility costs and shows you a way to lower them. Use DoNotPay to get funding for your regular expenses and planned activities.


What Are Small Business Utilities Costs?

Small business utility costs are the recurring expenses you need to cover for the use of your business space. These monthly costs include:

  • Gas
  • Fuel
  • Water
  • Sewer
  • Internet
  • Electricity
  • Telephone
  • Garbage disposal

When creating a budget for your business, the small business utility cost needs to be factored in as both:

  1. A startup cost
  2. Ongoing small business expense

What Are the Average Utility Costs for a Small Business?

The average utility cost for a small business:

  • Is $2.10 per square foot of commercial location
  • Can range between $200 to $1,200 for a 700 square foot commercial property, depending on the location of your office space

Energy—electricity in particular—is the largest operating expense for most businesses.

What Affects the Small Business Utilities Cost?

The cost of utilities for a small business depends on different factors—consult the following table for details:

Influencing Factors Explanation
Weather The electricity cost of your small business may depend on:

  1. Hot weather—The cost can increase significantly with the use of air conditioning and fans
  2. Cold weather—If you do not use electric heating, the electricity cost can be lower when it is not warm outside
Fuel prices Electricity and utility costs usually shift when fuel prices change
Transmission and distribution system Paying for the maintenance of the system that connects power generators with electricity consumers can affect utility costs
Location The location of your small business is another criterion that affects utility costs (they are generally higher in bigger cities)

Other Small Business Costs You Need To Cover

Aside from utility costs, you will need to cover other recurring expenses to keep your small business going. Here is a list of common small business costs:

  • Payroll—To hire employees, you will need to secure money for their:
  • Website—While you can get a professional to design and maintain your company website, you could also do it by yourself for much less money
  • Inventory—Depending on the industry of the business, you will need to allocate from 17% to 25% of your budget to inventory
  • Insurance—You can choose different types of insurance for your startup and small business, including:
    • Business owners policy
    • Cyber liability insurance
    • General liability insurance
    • Commercial auto insurance
    • Commercial property insurance
    • Business interruption insurance
  • Consulting—While you can keep an attorney, accountant, and other experts on the payroll, you could also hire a professional only when needed
  • Advertising—Depending on the industry you are in, you may not have to spend a lot of money on the promotion of your services or products
  • Office space—Like utilities, this is another fixed cost you need to cover every month

Where To Get the Funding for Your Small Business

Since small business expenses can be considerable, you might find yourself in a situation to look for financial assistance.

You can get a loan or grant for your small business from different providers, such as:

Before investigating further, you should get familiar with how small business loans work to understand what you need to prepare. By doing thorough research, you can find the most suitable loan for your business with favorable terms and reasonable interest rates.

Depending on the type of business, industry, and qualifications, you can select the type of loan that meets your specific business needs, including:

DoNotPay Can Help Secure Your Small Business Loan

We know how taxing loan applications can be. That is why DoNotPay has designed a product that can make your loan request stand out from the rest by generating an airtight loan request letter.

You will need to collect the necessary paperwork, including business financial statements and personal and business credit scores. DoNotPay will make sure your loan request letter:

  1. Includes all necessary details
  2. Is formal and persuasive

Sign up for DoNotPay and take these steps:

  1. Prepare your personal and business credit scores
  2. Gather all business documents you need
  3. Indicate the amount you would like to borrow
  4. Upload the required documents

Our AI-powered app generates a compelling loan request letter to help you obtain the funds necessary for your business operations.

Not sure where to start looking for a loan provider? With our Find Online Business Loan Lender feature, you will not have to investigate and compare options—we will do the hard work and present you with the most suitable lenders.

How To Lower the Cost of Utilities for a Small Business

If you would like to reduce your business utilities cost, you could consider the following options:

  1. Perform an energy consumption audit—You could hire a professional to assess your small business energy usage to help you:
    1. Understand how much energy different utilities consume
    2. Reduce any extra consumption
    3. Lower your utility costs
  2. Use energy-efficient devices—Purchasing the latest energy-efficient equipment and appliances can:
    1. Save energy
    2. Decrease utility bills
  3. Switch to LED lighting—This type of lighting:
    1. Lasts longer
    2. Reduces maintenance costs
    3. Is more energy efficient than other types of lighting
  4. Turn power saving mode on—The power saver:
    1. Protects devices and increases their life
    2. Reduces the energy consumption
    3. Lowers your electricity costs

Get the Upper Hand With DoNotPay

The business world is extremely competitive—that is why it is always good to have some extra capital set aside when you need to invest in your company. You can leave the bureaucratic task to us—DoNotPay will draw up business loan request letters in your stead.

If your finances are taking a hit, rely on our app. With our assistance, you will be able to:

  • Fight fraudulent chargebacks
  • Remove fake negative reviews online
  • Register and protect your trademark
  • Send mail and faxes at no additional cost
  • Handle clients breaching contracts and get what you are owed

Whatever the task at hand, our AI-powered app will see it through successfully.

DoNotPay—The Assistant Every Business Needs

You cannot escape bureaucracy in business. What you can do is let DoNotPay deal with it. Whether you need to register a DMCA agent or complete an Employer Identification Number (EIN) registration, our app will lead the way.

Using DoNotPay, you will also not have to worry about 83(b) election forms or Privacy Shield self-certification. From generating to filing important documents and from dealing with employees to handling clients on your behalf, our AI-driven app is your go-to solution.

Grow and protect your business with the world’s first robot lawyer!


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