There are many factors to consider when starting a small business. Hiring employees, acquiring materials, and establishing business procedures are some of the main tasks small business owners have to do when starting their business. Through all of this, small businesses must not overlook a crucial part of starting any business: sustainability.
Sustainability looks different for everyone. Some people may define sustainability with a focus on environmental consciousness, while others may think of sustainability as a group of processes intended to make something last. In the context of your small business, sustainability is about putting ethical practices into place to support your employees, community, and the earth. It can be difficult to prioritize sustainability as a small business, but it’s an important part of being a responsible start-up founder.
There are many reasons why sustainability is important to incorporate into your business. Keep reading to learn more about why sustainability is important and ways that you can prioritize it in starting your small business.
What are Sustainable Development Goals?
For many businesses, sustainability is guided by Sustainable Development Goals (SDGs). SDGs were established by the United Nations to reduce inequalities, increase access to opportunity, and build a more sustainable world for everyone. There are 17 sustainable development goals. Some of these goals include gender equality, clean energy, work, and economic growth, sustainable communities and cities, responsible consumption and production, and climate action.
Many of these goals are relevant to start-up small businesses. In starting a small business, these goals are good ways to guide the creation of sustainable practices. For instance, gender equality is important in a small business to ensure that everyone has access to the same opportunities. Climate action is another highly relevant goal, as small businesses should be environmentally responsible for the sake of the planet.
Sustainability is Important to Consumers
An important point for all businesses to understand is that sustainability has value to consumers. Over 75% of consumers value sustainability inthe products that they buy. Meanwhile, nearly 80% of retailers feel that sustainable business practices lead to more customer loyalty.
More and more consumers are caring about the sustainability of their products and the brands they shop from. This happens as the planet continues to worsen and as younger generations highlight the issue of climate change and how important protecting
the environment is. Ultimately, whether a business invests in sustainability or not is a factor in which brand and product a customer chooses to purchase. Given the rise of climate activism, it is likely that this trend in consumer purchasing will continue. Therefore, businesses need to invest in sustainability to set themselves up for success, protect the planet, and
practice good ethics.
Why is it Important to Prioritize Sustainability in a Small Business?
Appealing to customers is an important reason to invest in sustainable business practices. They need to be able to trust that you’re a responsible brand that treats employees well and takes steps to protect the earth. Further, staying sustainable can help retain customers.
However, being sustainable is an ethical issue as well. Your business should treat employees well and use materials and processes that are not destructive to the planet. These things have to do with the simple values of caring about people and being mindful of
how your actions impact others. If you choose to ignore sustainability, it will likely be seen as neglectful and irresponsible. Overall, the more sustainable practices you utilize, the more likely it is for your business to be lasting and effective.
How to Build a Sustainable Small Business
In starting a small business, there are several actions you can take to ensure that you are implementing sustainability into your business. It can be tempting for a start-up to ignore the importance of sustainability. After all, there are already barriers and costs to think about when starting a business, without worrying about the potential extra work to be sustainable. However, it is best to incorporate sustainability into your brand from the start rather than trying to build it into an existing business structure later on. This helps set the stage for your business to continue developing and adding to your sustainability practices later on.
Here are some of the main ways that you can prioritize sustainability in starting your small business.
Use Environmentally-Friendly Products
A key part of sustainability is using environmentally-friendly products. The products being sold and the packaging they are shipped in should be as sustainable as possible. This allows your business to reuse materials and reduce waste. Traditionally, businesses have used a lot of styrofoam and plastic in the process of making and distributing their products. These materials are not good
for the planet, as they either are not recyclable or have little potential for reusability. Using biodegradable and recycled products are more sustainable materials to use.
It’s worth noting that when it comes to sustainability, the material is not the only factor that matters. If you’re using suppliers, you want to make sure that they also follow sustainable practices. Partnerships with suppliers that treat employees poorly or don’t value sustainability reflect on your business’ values. Therefore, it’s important to consider each aspect in your manufacturing
and distribution process to ensure your business is sustainable throughout.
Engage with Local Community
Community is another crucial part of sustainability. It is in a community’s best interest to support their local small businesses and it’s in a small business’s best interest to support their community. There should be a constant cycle of support between small businesses and their communities. To ensure that this is effective, businesses should look for opportunities to partner with community groups and give back to their community to promote this cycle of support.
Pay Employees Fair Wages
Paying business employees and staff a fair, livable wage is a must. Good compensation is an important part of retaining employees and being a responsible business owner. When you don’t pay employees a fair wage, it can contribute to existing economic inequality and limit economic growth. Therefore, this factor is important in building a sustainable business. Paying livable wages is also important in building a positive work environment and is a fundamental part of taking care of your employees. Equitable, fair pay is something that you should invest in from the start as a sustainable small business owner.
Utilize Online Bookkeeping
Paper records are out of date and use a lot of physical office supplies that aren’t needed. Online records are much more sustainable and can be more organized than paper records. It’s not uncommon to store and update information online, which is especially convenient for businesses with hybrid or remote employees. This is a simple way to keep important records organized and saves resources in the process. Just make sure you protect your records and store them in a secure location. It’s also crucial that you keep your information backed up to prevent accidentally losing or deleting valuable information.
Note that preserving physical resources is something that you should aim to do across your company. Avoid using paper and non-sustainable office materials when possible. Using alternatives to paper, like online methods, can help preserve resources for when you need them.
Commit to a Cause
Committing to a cause may not be something that your company can do immediately when they are first starting up. However, as you develop your sustainability efforts, this may be something you want to add. Many companies will choose a cause or organization to donate to or support in other ways. This could be a part of giving back to your community or supporting good causes that benefit the world in general.
When you reach this step in your business, you should find a cause that ties in with your business’s mission. You can make donations to a specific organization by donating a portion of the profits or running collaborations with them. Some businesses even incorporate a cause into their business as a foundational part of their work. Ultimately, you will need to decide what works for your
business, but having a cause that you consistently support can show your commitment to equity and sustainability.
Invest in Sustainability for Your Business
Overall, sustainability is a crucial part of your small business. It should be a priority to ensure employee retention and an ethical business. It is also likely to be a factor in consumer purchase decisions and can make it more likely that consumers will buy from your brand.
There are many options for investing in sustainability for your business. It is important to take a comprehensive approach to sustainability, but the specific ways that it shows up in different businesses will vary. You should consider what makes the
most sense for your business to develop your strategy for sustainability.
Sustainability is just one factor in building an effective business. Our partner, Goodwall, provides tips and resources for young professionals and entrepreneurs to encourage them to pursue sustainable, equitable opportunities.
