While “sustainability” has become a popular term, it’s actually a widely encompassing concept that includes the way we think, learn, live, do business, and operate as a society. As a business start-up, sustainable operations can help ensure you save money, bolster your client base, and set yourself apart as a good corporate citizen.
Pre-Startup Needs
Before you launch your operation, you need to develop a comprehensive business plan. The plan will lay out all operational functions, including finances, marketing agenda, staffing needs, and efforts toward sustainable practices. You’ll also want to select a business entity. An LLC will protect you from some types of liability, give you flexibility for growth, and make it easier to file at tax time. You can do all of the legwork to file papers yourself, pay a pricey attorney to do it for you, or alternatively, use a formation company to ensure all details are handled quickly and efficiently. LLC formation requirements vary from one state to another, so learn yours in advance.
If you need funding for your business, you can look to outside investors. Keep in mind that if you’re searching for investors, a corporation may be a better choice for your business entity, as it allows you to transfer shares of your company to investors. You can also look for grants for eco-friendly businesses or take out a business loan. Before applying for a loan, it’s important to get familiar with your debt-to-income ratio, as lenders will look carefully at this number when determining whether to approve your application.
Operating in Sustainable Fashion
Running a sustainable company starts with a mindset, and with educating yourself about best sustainable practices in your industry. According to the Stanford Social Innovation Review, the overarching objective is to take into consideration ways in which you can cultivate a diverse staff, an ecologically sound, low carbon footprint base of physical operations, and develop a plan for having a positive impact on society. It takes an investment of time to dig into what it takes to operate sustainably, but this is a critical part of the process. Not only will you be well-informed on the topic, but you’ll also be well-positioned to communicate your efforts to a wider audience, including would-be consumers, about your position.
Incorporating Sustainable Measures
Most people are aware of basic sustainability practices that help reduce the negative impact on society, such as recycling, utilizing reusable products in manufacturing, operations, and daily business life. Your overarching goal could also include things like allowing remote work to reduce carbon emissions, or potentially eliminate the need for physical workspace; patronizing local businesses; buying energy-efficient products and equipment; conducting regular energy audits; and striving for things like U.S. Green Building Council LEED-certified building projects. Supporting other sustainable businesses and industry initiatives is also critical, as is making it part of your corporate culture. Train employees on sustainable business practices and encourage ongoing participation and feedback.
Communicate Your Efforts
Publicizing your sustainability efforts isn’t just a way to pat yourself on the back for your good works. According to Boston College Center for Corporate Citizenship, it’s also a way to serve as an example of stewardship, and to encourage participation from others, all while educating people about the necessity for sustainable living. Will this also help you attract new business? Absolutely! Many individuals and companies want to align themselves with others making positive contributions to society. Share your best practices and note your achievements on your website, via social media channels, and highlight your efforts in all marketing and presentation materials. Include inspirational messaging about why you’ve chosen to operate in this way and serve as a model for others to emulate.
Many businesses shy away from large-scale sustainable practices fearing they will be expensive to implement and sustain, that they may need to charge higher rates to offset costs, and that customers will react unfavorably. However, done correctly, sustainable measures can have the opposite effect: reduced operational costs, competitive rates, and a new and expanding audience of consumers who support your efforts.