Small Business Options: Coping with High Gas Prices

Large companies and corporations don't have to worry about the rise of gas prices like small businesses do. Most corporations have contacts and discounts and other ways to absorb the rising cost of gas, but small business don't have any such recourse. The important thing is not to let gas prices ruin your revenue - or your expense reports.

If you own a small business, chances are that gas is one of your most necessary commodities. Door-to-door sales, for example, requires gasoline for transportation. Delivery businesses have the same problem. Or maybe you just use a lot of gas driving to visit clients or to run errands. Whatever the reason, gas prices are climbing by the minute, and small business owners need to come up with ways to reduce the monetary hit taken by high gas costs.

1. Evaluate Gas Consumption

Regardless of the outcome, it is extremely important that you evaluate exactly how much gasoline is used on a daily, weekly and monthly basis. Even if it fluxuates slightly from week-to-week, you should be able to determine a ballpark figure. Write down the names of ever employee or officer who uses gas as a company expense, then write down how many miles each person travels per day as well as the make and model of their vehicle.

Some cars, trucks, vans and SUV's consume more gas than others. For example, an employee that drives a Honda Civic on his or her sales route will achieve better gas mileage than an employee who drives a large delivery truck. In your estimates, make allowances for those types of variables to achieve the most accurate total.

2. Map Routes

Most sales associates have specific territories that they work each day. Delivery drivers have a route that is planned by the company. No matter what business you are in, you should know where and when your employees and officers are driving on a given day, especially since the expense is coming from the company bank account.