Small businesses are said to be making the biggest reductions in their carbon footprint according to a recent report from Changemaker, so what lessons can big businesses learn from these sustainable startups?
JC Glancy, co-founder of business formation provider ZenBusiness highlights five lessons big brands can learn from the eco-friendly efforts of small businesses to tap into the 64% of Americans who are willing to pay more for sustainable products.
Lesson 1 – Focus on sustainability from the get-go
“An advantage a startup has into today’s society pushing for a sustainable future is they can focus on developing ethical morals and values from the off.
“Businesses who can establish their focus on helping the environment at the beginning of their customer journey, this will help them gain trust and loyalty of consumers who want to shop and purchase sustainable products.
“Whereas, a large company that hasn’t particularly focused on sustainability at the beginning of their journey will have to redefine their sustainability ethics, which can also alter their business strategy, branding and products.”
Lesson 2 – Producing higher quality products
“A business needs to source and have full awareness of the fabrics or materials they use to produce their products. However sometimes when larger businesses produce mass volume of products, this can be a challenge.
“Smaller businesses producing fewer products have the ability to produce higher-quality goods, whilst inspecting the factories where goods are made, and ensuring that every item is certified as organic and sustainable.
“Inventory and stock sitting around in a warehouse can be harmful to any business, because if money is tied up in inventory, a business can lose the opportunity to invest in other areas of the business, such as sustainability frameworks”.
Lesson 3 – Nailing your manufacturing and delivery processes
“Startups hold the power to make decisions on delivery processes, and packaging. Therefore they can gear these decisions around their ethical ethos.
“Whilst the big brands are shipping a large volume of products internationally, recent reports reveal that global shipping emits 1 billion tons of carbon dioxide a year.
“Whereas, small business start-ups can keep their distributions on a smaller scale, maintaining stronger relationships with their delivery partners and choosing the right type of packaging.
“Whilst recycled paper and cardboard are tried and truly sustainable packaging options, more startups are thriving toward creating completely compostable packaging that results in zero waste at the end of its cycle.”
Lesson 4 – Obtaining trust with consumers
“If a start-up portrays its sustainable message to its customers from the beginning, often customers will grow to know and like the brand in its first few years. This will then encourage customers to instantly identify it as a sustainable business.
“Whilst smaller businesses can concentrate on communicating with their customers on a personal level by utilizing social media and building in-person relationships, larger businesses can often struggle with this as they juggle other aspects of their business.
“Startups can focus more of their time on telling their customers what their products are made of, how they are manufactured and the backstory behind how the business came about and their ethical morals.
“Small businesses can also be part of a local community and therefore offer more than just core services. They can demonstrate they give back to the community, allowing their customers to know and respect them.”
Lesson 5- Starting up with a sustainable branding
“An entrepreneur with an ethical ethos in mind from the get-go will have an advantage over other businesses whose branding may not solely focus on sustainability.
“A startup has the ability to design its brand to coincide with its ethical values and morals, whether it be through its choice of colors, logo designs or slogans, and can build a strong reputation with this branding.
“Whereas if a larger business established ten, or even twenty years down the line wanted to refresh its branding to coincide with a new message, it would have to go through several changes such as altering its website, marketing, social media, and maybe even stores and packaging to coincide with new branding.”
