One of the first things small business owners should think about in an economic downturn is how to reduce their costs.

But while more drastic steps such as cutting back on planned investment or laying off staff may be necessary at some point, business owners can free up some much-need resources by implementing a number of energy-efficient initiatives around the office and in their working practices.

"When money is getting tight there are many ways in which being more environmentally friendly will really help your bottom line," says Erica Russell, an adviser at Business Link.

"Cutting even a few hundred pounds of costs from your business - and this need not affect the level of customer service you offer - is equivalent to thousands of pounds of extra sales. Start off by considering your energy use and transport costs, as these are two large areas that you can make savings in quickly."

Business Link offers the following low and no-cost tips to help businesses take steps to lower their environmental impact and add to their bottom line:

• Get your staff to switch off computers, lights and high-energy guzzlers such as electric tea or coffee machines or speakers. Taking these basic steps can cut energy costs by 10-20%

• Consider investing in new, more efficient equipment, as older pieces may use more energy. If financing is an issue, you may be eligible for a Carbon Trust interest-free loan, something worthwhile in these credit tight times.

• Make sure that all deliveries or sales team routes are carefully planned to keep mileage as low as possible. If you run a fleet of over 50 cars or trucks, get a free green review from the Energy Saving Trust. Also, train your drivers to use minimal fuel. Drivers who have been through a Safe and Fuel Efficient Driving (SAFED) training course use on average 18% less fuel, which typically equates to a £500 saving per van driver each year

• Try to substitute some of your client face-to-face meetings for web-based video conference calls. This will also help you to keep down your carbon emissions by significantly reducing travel

• If you are questioning the need to have actual business premises, then consider working from home. Network with other colleagues and have a dedicated space, which you can use for catch-up meetings. Offering flexible hours so staff can work from home will also reduce their carbon footprint and can often improve productivity and motivation

• Strive to be a paperless office. Encourage staff to minimise the amount of printing in the first instance but also make changes to extend toner life and reduce paper. Change the generic ‘print default' settings so that the quality is always ‘draft' and opt to print on both sides