There are many things a business must be concerned with. This includes product quality control, public relations, marketing campaigns, customer service and much more. However, one thing that many businesses ignore that they shouldn’t is sustainability. While sustainability may seem like something that only benefits the environment, there are many great reasons why a company should aim for a sustainable business model.
It Protects the Future of Industries
Industries that do not rely on sustainable business models will someday face problems. According to USA Today, there are only 53 years worth of oil in reserves currently. While new oil reserves may continue to be discovered, there may come a day when oil is scarce enough that it is no longer a profitable fuel source.
With this in mind, many industries are adapting. Oil companies have evolved into “energy companies” with a wider portfolio of investments into different fuels, many of them renewable energy sources that are completely sustainable. Auto manufacturers have begun shifting towards manufacturing electric vehicles that do not need to rely on gasoline alone.
It Saves Money
Sustainability can secure an industry’s future. However, it can have immediate benefits in the present as well. This is because sustainability usually has a direct correlation with low expenses and low overhead. Sustainable business models tend to rely mostly on efficiency. They use fewer natural resources, use less electricity and produce less harmful byproducts that must be managed by clean-up efforts. This, in turn, results in lower overhead for the company and can slash costs across the board. In essence, sustainable companies are able to produce the same products and services with the use of far fewer resources. This efficiency will greatly benefit the company financially.
Many companies may be hesitant to switch to more sustainable business models because of the size of the initial investment that must be made. Thankfully, the government has put tax incentives in place to help convince more businesses to move towards a greener and more sustainable business practices.
According to the Small Business Administration, there are a number of federal tax credits for companies that make investments in energy efficient technology. There are also often tax credits for sustainable business practices on the state and local level as well. Investigate the possibility of using such tax credits to offset your initial investment into more sustainable technology for your company.
Marketing Can Be Sustainable as Well
A lot of traditional marketing strategies aren’t exactly friendly to the environment. Direct mail and print advertising, for example, definitely have a negative effect with how much paper must be manufactured to create those advertising materials. Thankfully, modern technology allows for companies to produce advertisements that don’t need to be manufactured. There is of course TV, radio and now internet advertising.
Internet marketing in today’s connected world is especially important to business success. You can implement services from companies like OpenTell to help you manage your online reputation through customer reviews to ensure your marketing even more effective. Being able to directly manage PR and marketing midstream was much more difficult before the internet.
It Allows You to Remain Competitive
Chances are that your competitors in your industry are making efforts to move towards a greener and more sustainable technology and business practices. This can create more efficient and streamlined production processes with lower costs. It can also create a lot of good PR with the public. Overall, if you want to stay competitive in many industries, moving towards a more sustainable model is probably a good idea.
Moving towards sustainability as a business may seem like something that can only benefit the environment. However, it can also help you build plenty of competitive advantages like lower costs and a more secure future. Consider different ways your company can become more sustainable.