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Last updated: 19 March 2024
How to make a business more sustainable
Sustainable business practices help tradespeople be more profitable and environmentally responsible. In this article, we share ideas on creating a sustainable business strategy.
What is a sustainable business strategy?
You hear a lot these days about being more sustainable. It applies to both individuals and businesses.
What does sustainable mean for tradespeople running their own businesses?
Two of the ways that tradespeople can address the need to be more sustainable are:
Having a financially sustainable business strategy
Having an environmentally sustainable business strategy
Both can achieve the same result of increasing profits for tradespeople. At the same time, these sustainable business practices help tradespeople contribute to a better world.
Protecting your livelihood and the planet
A sustainable business strategy encompasses trade activities as well as broader environmental and social considerations.
In business, you often hear talk of ESG. This stands for environmental, social and governance. It tells people – staff, customers, suppliers, local communities – what actions a business is taking in these areas. ESG is used to measure how businesses are improving at being ‘good citizens’.
The ‘social’ includes how a business treats people and interacts with them. ‘Governance’ is about how companies are run and the decisions they make.
Demonstrating clear ESG strategies is a big deal for large businesses. Their shareholders and investors look closely at what progress they are making in all three areas.
Small businesses don’t have to make the same commitments as big companies. But it makes sense for tradespeople to embrace ESG principles.
The better a business is at ESG, the more successful it is likely to be. So, a strong commitment to ESG practices should be part of a sustainable business strategy.
How to be more financially sustainable
Financially sustainable business practices cover a broad range of areas. Essentially, it’s about running a successful and long-lasting business.
Make more profit
Having a financially sustainable business strategy focuses on how to achieve profits consistently. A stable business able to make regular profits whatever the economic conditions will be more financially sustainable.
There are lots of ways to boost your profits.
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Have a strong cash flow
Having enough money in the bank to keep your business going is a fundamental sustainable business practice. Managing cash flow can be a bit of a headache but it is worth spending time improving it. There are lots of ways to improve your cash flow.
Invest in your business
A financially sustainable business strategy could include ideas on how you intend to build your business. Growing a small business will probably require investment at some stage.
You could:
Invest your own savings or profits
Consider bank loans and financing
Think about linking up with business partners
Move ahead by buying another business
Set up strong financial systems
Keeping on top of your finances and accounts is a good sustainable business practice. It allows you to plan more effectively.
It also means you can spot issues with finances before they happen. That way, you can avoid problems and maintain a sustainable business.
A good way of improving financial systems is with technology. The Powered Now app, available for free to Checkatrade members, provides a useful range of finance tools.
Review your strategy regularly
A robust financially sustainable business strategy has to be flexible. You can’t predict how things may change in the future.
By regularly reviewing your strategy you can keep your plans up to date. This could include changes to both your business requirements and personal ambitions.
How to be more environmentally sustainable
Having a financially sustainable business strategy keeps your business running smoothly. At the same time, following environmentally sustainable business practices brings multiple benefits.
Look for new opportunities
Being greener makes business sense. By being more aware of how your business impacts the environment you can improve how you work. See our suggestions below for ways you can reduce your costs, improve your profits and win more customers.
Taking a more eco-focused approach can open new business opportunities. Installing solar panels is a great example of a high-growth green trade. So is installing electric vehicle charger points.
Focus on customers and communities
You’ll find that customers increasingly choose tradespeople based on sustainability considerations. They'll want to know you aren't creating unnecessary waste and are using sustainably sourced or recyclable products. People tend to respond more positively to businesses that they can see are involved with and support their local community.
A sustainable business strategy looks at the way you interact with colleagues, suppliers and customers. Doing the right thing in terms of treating people fairly enhances your business reputation. So, too, does demonstrating how you are helping reduce the impact of climate change in the business decisions you make.
Go greener
Here are some environmentally sustainable business practice ideas:
Reduce energy use by turning off lights and turning down heating
Use more energy-efficient tools, plant and machinery
Switch to a green energy supplier
Drive vehicles so they use less fuel. Better still, think about using electric or hybrid vehicles
Reduce deliveries by planning shorter routes that cut fuel consumption
Use less plastic
Reduce the amount of paper you use by going digital
Look at ways you can reduce waste, especially in the amount of materials you use for your trade
Use more sustainable building materials. Our free guide shows you how
Choose recycled building materials
FAQs
What is the importance of sustainable practices in business?
Sustainable business practices help tradespeople protect their profits and the planet
What is meant by sustainable and green business practices?
Green business practices are ways tradespeople can be more environmentally friendly in their work
What are some examples of environmental sustainability in the workplace?
Good examples include using less energy and fuel, cutting waste and using sustainable or recycled materials
What is an example of a sustainable business?
A sustainable business has a sound financial footing that enables it to thrive. It also operates in ways that reduce its negative impact on the environment
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DISCLAIMER
This is information – not financial advice or recommendation. The content and materials featured or linked to on this blog are for your information and education only and are not intended to address your particular personal requirements. The information does not constitute financial advice or recommendation and should not be considered as such. Checkatrade website is not regulated by the Financial Conduct Authority (FCA), its authors are not financial advisors, and it is therefore not authorised to offer financial advice.
Always do your own research and seek independent financial advice when required. Any arrangement made between you and any third party named or linked to from the site is at your sole risk and responsibility. Checkatrade blog and its associated writers assume no liability for your actions.
