A common perception of the role of the entrepreneur or business owner is that it is largely about the “big picture” of running a company or organisation. By this, we generally mean longer-term planning or strategic matters, rather than necessarily the “nitty gritty” of day-to-day technical processes that might nonetheless be of critical importance to the core business.
The ability to convert one unit of energy or power into another – for example, turning horsepower into kilowatts – might seem a classic example of such a technical process.
Knowing about energy conversion, though, is something that can be advantageous to the entrepreneurs at the top of even relatively small companies. In other words, it’s not only relevant to the “foot-soldier” designers or engineers who may spend much of their time deeply engaged in specialised technical work.
Here are a few examples of what we mean by that:
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It Can Help with Managing Business Costs
A prominent theme of the 2020s so far has been the ongoing cost-of-doing-business crisis, and the central role of energy bills in this situation is unlikely to let up soon.
Indeed, a survey last year indicated that more than half of small business owners were worried about energy costs going up over the coming five years. It has recently been reported, too, that businesses could be grappling with high energy bills until at least 2026.
If you are able to carry out energy conversions accurately as a business owner, this could greatly help when you are comparing options for equipment. This applies even if it’s only something as “mundane” as an espresso machine for your coffee shop (after all, if you mistakenly choose a highly energy-inefficient device, the extra costs will quickly add up).
A good understanding of energy conversion could also help when you’re evaluating renewable energy options that your business may be looking to adopt over time.
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It Can Be Key to Securing the Right Deals with Vendors
We addressed the topic above of acquiring key equipment for your business, and it’s an aspect worth emphasising. It can be easy to end up in situations where suppliers of various essential items are effectively throwing specifications at you. If so, the conversion of different units of energy might be necessary in order to compare “like with like”.
You might, for instance, be presented with an espresso machine with five metric horsepower. If so, having the ability to convert horsepower to kilowatts with ease, means you will be able to carry out the relevant calculation (5 x 0.7355) and figure out this equates to 3.6775 kW.
As a consequence, if you’ve seen another espresso machine advertised with the same kilowatt reading for a lower price, you could mention this as you haggle with the supplier.
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It Can Help the Business Make the Most of Opportunities Across the World
While we’re on the subject of horsepower and kilowatts: did you know about the distinctions between metric horsepower and imperial horsepower?
As the respective terms suggest, in certain sectors and parts of the world, there will be a tendency to use one of these “types” over the other. For example, in the European car industry (outside the UK), it is metric horsepower that is typically used, while the UK and the US commonly use the imperial version.
As these units of power differ slightly in their definitions, the calculation to convert them into kilowatts is also a bit different. When converting imperial horsepower into kilowatts, you will need to multiply the horsepower number by 0.7457, rather than the aforementioned 0.7355.
Knowing these subtleties as an entrepreneur can enable you to avoid mistakes that could cause meaningful damage to your business as you seek to engage with different markets and territories. It is one more of the many ways in which being able to convert different units of energy can bring real benefit as you seek to grow your company.