Starting and running a sustainable business is a journey that's filled with a plethora of twists, turns and surprises. There is no linear, defined pathway to ensuring a startup business remains profitable, operational and eco-friendly in the long run, nor is there any easy or preferential time to start such a business.
Entrepreneurs who are passionate and devoted to important socio-political causes often use their passion and dedication as the proverbial steering wheel when navigating the rocky waters of business. However, many innovative thinkers simply opt not to start their own companies due to overwhelming fears of uncertainty and inexperience in the field.
Climate change, soaring global temperatures, pollution, drastically dwindling resources, geopolitical turmoil and rising sea levels are just some of the turbulent environmental issues facing our planet. Businesses have a crucial part to play in the fight to protect the environment and the world, given that they are responsible for a sizable chunk of global greenhouse gas emissions. It's no wonder why many eco-minded entrepreneurs are devoted to such a cause. But how can they counterbalance their business ideas with sustainable activities that don't cause more undue and unnecessary harm to our planet?
That's what this guide is here for - to give you food for thought when aligning your sustainability goals with your business aims.
Some of the Challenges of Today's Business Landscape
The business landscape is plagued with economic uncertainty, instigated by a range of factors ranging from the conflict in Ukraine, supply chain disruption, high inflation, and the growing influence of artificial intelligence. This isn't even accounting for a huge, often-glossed-over, underlying issue of sustainability and environmental preservation.
This array of developing and constantly evolving issues is enough to make any ambitious entrepreneur apprehensive about entering the business world. However, with consumers and businesses growing increasingly connected to one another, one of the most crucial ingredients for achieving loyalty, brand awareness and recognition is transparency.
This is particularly pertinent for companies that exhibit climate-positive traits and commitments, which is an issue that many consumers hold dear, so much so that their buying behaviors are largely influenced by how eco-conscious a business is. Additionally, legislation is being created to encourage greater eco-responsibility for business owners, while also making it easier for them to switch to alternative, sustainable solutions ranging from eco-friendly commercial heating to sustainable product development and carbon offsetting.
Therefore, building an eco-friendly business model is key to success in a world that's facing a diverse range of challenges, perceptions and developments by the day.
6 Strategies for Entrepreneurs to Create an Eco-Conscious Business
As consumers are becoming more concerned about a business's corporate social responsibility (CSR), it's growing increasingly important for company owners to consider the impact that their business is going to have. It's much easier said than done, but establishing an eco-friendly business doesn't have to be excruciatingly difficult.
These six strategies should at least give you some inspiration for capturing your ideal target market(s) and setting stable foundations for continued success.
1. Define Your Sustainability Mission
What environmental or social issues will your business attempt to address? A clear mission statement guides key decisions and policies that are filtered down throughout your business as it scales and grows. These mission statements could be reducing waste, using renewable energy, fair trade sourcing, or promoting the reuse of high-quality products and minimizing e-waste. Whatever the sustainability vision and mission, it needs to be authentic, relatable and relevant to your business's industry.
For example, a clothing distributor could aim to reduce textile waste by using recycled materials and partnering with ethical manufacturing firms. A restaurant could aim to support local farmers and suppliers, use organic produce, and refrain from using single-use plastics.
2. Choose Sustainable Business Practices
Examine how you source, manufacture and distribute your products. Reduce your carbon footprint through minimal recyclable packaging, or consider partnering with vehicle fleets that only complete deliveries in electric vehicles. Alternatively, you could consider reducing the need for regular transport altogether by facilitating remote meetings and hybrid working.
If you are going to be investing heavily in your business's marketing strategy, adopt an eco-conscious mindset at every juncture, whether it's hosting your website with a green hosting provider or buying used quality photography equipment to take your high-quality eCommerce product photos.
3. Build a Green Supply Chain
Work with like-minded, eco-conscious suppliers and partners to source sustainable materials that do not cause undue harm to the environment. It's also worth partnering with and supporting B Corporations and aligned businesses that meet high standards of accountability and performance when it comes to supply chain practices.
A sustainable and optimized supply chain ensures ethical goods, commodities and services flow to customers with minimal environmental impact.
For example, a furniture and home decorations brand could partner with suppliers using sustainable wood, cotton, and non-toxic dyes and chemicals. Food brands could work with farms using certified organic and fair trade ingredients, or promote a broader range of plant-based products that utilize fewer resources, energy and water to produce.
4. Engage Your Team and Community
Communication goes a long way, and it's no different as far as openly communicating your goals and initiatives with your partners, suppliers and, eventually, as your business grows, your staff. Empower your team to contribute ideas and other initiatives to further spread your message and improve your productivity.
An engaged business community helps drive efforts and fosters loyal, advocating and mutually-beneficial partnerships and relationships with similar businesses. In turn, this can lead to improved, higher-quality referrals and recommendations.
5. Measure and Optimize
Establish key metrics and KPIs to continually monitor and analyze your environmental impact, whether it's your outgoing energy usage, waste produced, or carbon emitted. Regularly review your data and make gradual improvements where applicable, and don't be afraid to demonstrate accountability and transparency. Don't deflect the blame on others as this can negatively influence your brand image.
For example, measure kilowatt hours of energy used or pounds of waste diverted from landfills. From that, you can start to make changes such as adopting newer, eco-friendly heating and cooling solutions that use renewable energy and emit less waste, as an example. Set targets and timelines to optimize based on your sustainability mission.
6. Market Your Green Credentials
Following on from the importance of communication, educate your customers and followers about your mission and values. Actively promote the actions your business is taking and your continual environmental impact through social media, email marketing, website articles and blogs, digital PR, and more. If you are becoming a sustainable brand, spread the word around so more people know how seriously you are taking your mission.
Useful Sustainability Resources for Startups
B Impact Assessment: This free tool allows you to measure your impact and become a certified B Corporation, which permits you to place that logo on your website, branding and marketing materials.
1% for the Planet: A charitable organization that you can join, in which you pledge 1% of your sales to environmental causes and sustainability initiatives.
Climate Neutral: A resource that helps startups reduce and offset carbon emissions, working towards achieving 'climate neutral' or 'climate positive' status.
B Lab: A nonprofit resource hub that offers startups plenty of advice on becoming a B Corporation and building a sustainable business.
Sustainable Business Network: A networking organization that helps businesses collaborate and take action on sustainability. This firm encourages education, networking and marketing opportunities between business owners, while not deviating from the core issue of the environment.
It's clear that building a sustainable startup business requires plenty of forward-thinking, commitment and trial-and-error. However, when done right, the rewards that your business can reap can be huge, in terms of helping the planet and enhancing your your bottom line. By following the above steps, you'll be best positioned to establish an eco-friendly company from the outset, that is poised for long-term success.
