Still, it can be tough to acquire funding for sustainability initiatives – let alone get your employees or customers on board – without knowing the specific benefits to your enterprise. Let’s look at five reasons your business should “go green” right now to take advantage of market momentum.
You’ll Reduce Costs
First and foremost, going green often helps companies reduce business costs. That might seem counterintuitive; after all, doesn’t pursuing eco-friendly initiatives require you to spend money? Initially, yes.
But in the long run, going green will actually help you save money. Studies show that approximately 33% of businesses that integrate sustainable practices cut costs, improving cost efficiency by about 19%. Over longer time frames, many businesses save millions of dollars through practices like sustainable waste management, transparency, and eco-friendly shipping.
Still not sure how going green can help you reduce costs? Here’s one example. When you swap out regular light bulbs with eco-friendly bulbs, you save money on your monthly energy bill, as LED light bulbs use at least 75% less energy than traditional bulbs.
Similarly, you can convert your business to run on solar energy rather than relying on fossil fuels. Over time, solar energy panels and other installations pay for themselves, requiring an initial investment but saving you much more money in the long run.
On top of that, the federal government offers a variety of tax rebates and credits when you go green. The more sustainable you make your business, the more you’ll qualify for these tax benefits and be able to save money each year come tax season.
Your Brand Reputation Will Improve
That’s not the only reason why you should prioritize sustainability in your business, of course. When you go green, your brand reputation can improve significantly.
Nowadays, people like to shop at brands that prioritize eco-friendliness and sustainability. After all, the modern mindset is that we are collectively responsible for the health of our planet and the diversity of its ecosystems.
When your brand consciously and visibly contributes to sustainability, its reputation will increase. That’s a major benefit, particularly if you are running a small startup and are at the earliest stage of your business’s life span.
In the early days of your business, reputation is everything. You want to bring new customers to your brand and drive them away from competitors. Going green could be the way to do just that.
Your Customers Will Love It
In a broad sense, your customers will likely love sustainability initiatives. According to some surveys, 63% of Americans want corporations and businesses to drive both environmental and social change, particularly because the government cannot necessarily be relied upon to do the same.
If your customers love your sustainability pushes, they will be more likely to purchase products from your business instead of a competing organization. The happier you make your customers, the more your brand reputation will rise in conjunction.
All of this can lead to better word-of-mouth and positive online reviews on resources like Yelp and Google. Don’t discount the power of making your customers happy outside your primary offerings. Going green could very well help your brand skyrocket in popularity and grow much more quickly than it might otherwise.
You’ll Make More Profits
There are financial advantages to going green, too. Indeed, focusing on sustainability could provide your business with a competitive advantage and improve its bottom line.
Firstly, by reducing business costs, every dollar you make has more spending power when you funnel it back into your enterprise. In addition, the more you take advantage of sustainable technologies and initiatives, the more people will shop at your business, resulting in more purchases and subscriptions depending on what you offer.
All of that translates to more money that can help you stay in the black. That’s doubly true if you integrate your eco-conscious approach into your marketing campaigns.
You’ll Be Prepared for Future Laws
On top of all those benefits, focusing on sustainability in your small business means you’ll be prepared for future laws and initiatives as dictated by the federal government.
We’ve already seen how some of these laws can play out. For example, the Ontario government in Canada has implemented the Green License Plate Program, which gives low-carbon emitting vehiclesspecial access to driving lanes like high occupancy vehicle lanes.
Of course, in the US, there are already extra tax rebates and benefits for brands that make the leap to go green. In the future, many businesses may be forced to make costly changes to their infrastructure or production processes to meet sustainability goals, particularly climate change mandates.
In essence, the government is slowly but surely shifting toward a more sustainable mindset. If you want your brand to be ready for these changes, you must adopt sustainability now rather than later. It could cost you less money if you get ahead of those mandates now, plus you’ll be ahead of your competitors, too.
Bonus Benefit: Another Marketing Angle
Another big advantage of sustainability and small business is improved marketing flexibility. You can use your eco-friendly initiatives and developments as marketing angles to drive more business and bring new customers to your brand.
As noted above, modern consumers want to shop at eco-friendly, sustainable brands above all else. Why not provide them with proof that your brand is sustainable by highlighting this in your marketing materials? These include social media posts, PPC or online ads, and television advertisements.
The more you highlight that your company is green, the more likely you’ll bring more business to your retail or online shop. This way, your marketing team can further distinguish your brand from competing organizations in the same industry.
As you can see, there are many reasons your business should go green and prioritize sustainability in 2023 and beyond. The more you focus on going green, the more customers will flock to your brand and choose you over your competitors. Why wait? Get started pursuing green initiatives today!
If you’re not a business owner but still want to support eco-friendly companies, Mainvest is the perfect solution. With Mainvest, you can invest your hard-earned cash in local, eco-conscious startups, ensuring that your investments go to the companies that deserve them. Check us out today!
This post was contributed by a guest author. Mainvest does not guarantee the accuracy of information in this post and does not provide legal, tax, or accounting advice.