Get on top of your gas expenses to help your bottom line

By Rhonda Abrams
Gannett News Service

Have you been to the gas station lately? Ouch! The price of gas has skyrocketed.

While that's bad news for all consumers, it's particularly tough on small businesses. Finding ways to save money on gas can help your bottom line.

Cutting down on gas is not only good for your budget — it's good for your country. If each of us could eliminate even a couple of gallons of gas a week, we'd help make America less dependent on foreign oil.

What can entrepreneurs do?

• Make a driving plan. You drive a lot — sales calls, deliveries, appointments, errands, and more. Eliminate trips and crosstown driving by "clustering" your appointments and destinations. I'm a realist. If a hot prospect agrees to meet you — but only Wednesday at 3 p.m. — take that appointment. But can you schedule another sales call before that appointment or go to the office supply store afterward?

• Use the phone first. Take care of routine business over the phone instead of in person. Before driving to an appointment, call to make certain your meeting is still on — unless, of course, you're afraid that hot prospect will cancel if you phone.

• Park and walk. Park in a central location to your meetings or errands and walk between them. Don't keep circling for the perfect parking place; it uses up gas. Parking and walking the extra block is good for your health, too.

• Keep your car in shape. A friend got two more miles per gallon by changing her spark plugs. Keep your tires inflated to the recommended pressure. With gas prices so high, even small improvements in gas mileage makes a difference.

• Lighten your load. The heavier the load, the more gas you use. Can you remove some of the tools, samples, or excess materials you're lugging around?

• Change working hours. Sitting in rush hour traffic uses up extra fuel. If you or your employees commute — or have appointments across town — try to avoid prime time traffic if possible.

• Encourage bike riding, public transit and walking. Create a safe place for employees to store their bikes. If possible, provide a shower and changing area. Set an example by walking or biking yourself.

• Buy a hybrid vehicle. Hybrids combine gas engines with electric motors. You don't need to plug your car in at night, and you get terrific mileage, averaging from 40 to 60 mpg for passenger cars, such as the Toyota Prius or Honda Civic hybrid. This year, bigger hybrids will be released, including SUVs by Ford, Toyota and Lexus, and pickup trucks by Dodge and GM. An added bonus: You'll get a tax deduction of $1,500 if you buy a hybrid in 2004. I have three friends with hybrids, and they love their cars, bragging enthusiastically about performance and gas mileage.

• Select location with transportation in mind. Moving? Look for a location where you and your employees can easily walk, bike, or take public transportation to work. Even if rent is a bit higher, keep this in mind: rent expenses are tax-deductible; expenses for driving to-and-from work are not.

• Get a microwave. And a refrigerator, some tables and chairs, perhaps even an espresso machine. If you or your employees have to drive to lunch, make it easy for them to stay at the office. They'll save money, too.

• Reduce shipping expenses. With higher gas prices, shipping companies will certainly raise fuel surcharges. Start preparing. Consolidate shipments, reduce waste in packaging, lighten shipments by using other materials.

• Get a gas credit card with rebates. Some gas companies rebate a small percent of your purchases every month or year. With prices so high, that adds up.

• Slow down. I've saved this for last, because I like driving fast. But speeding — along with rapid acceleration and braking — lowers gas mileage. According to fuel-economy.gov, you can reduce fuel consumption by as much as 33 percent on highways and 5 percent in stop-and-go city driving by becoming a less aggressive driver. Shucks.

Rhonda Abrams is the author of "The Successful Business Plan: Secrets & Strategies" and the president of The Planning Shop, publisher of books and other tools for business planning.