If you manage or own a small business in Australia, failing to implement sustainable strategies can be one of the biggest mistakes you can make now. Why?
According to a new study from Mastercard;
- Over 80% of Australian consumers say they’re actively striving to reduce their carbon footprint,
- 48% warn that they’d avoid shopping at businesses that don’t implement eco-friendly practices, and
- Over 10% reiterated they would only shop from sustainable.
So if you’ve not been giving eco-friendly practices the attention they deserve, here’s why you should change your mind soon:
Broaden Your Customer Base
Customers are the cornerstone of every business. And businesses that don’t monitor customer tastes and preferences are taking a huge risk.
According to a Forbes Magazine report, the majority of young people (Gen Z) get products and services from small businesses today. This generation is known to prefer sustainable products and practices. And it’s not just about Gen Z.
A recent study by Accenture shows that over half of consumers are ready to pay top dollar for sustainable products. That number is expected to hit above 80% in the next few years. Industry experts warn that businesses that don’t rise to the occasion are more likely to lose customers.
Maintain Your Competitive Edge
As mentioned earlier, sustainable business practices are a hot topic right now. As eco-friendly practices become common, small businesses that ignore sustainability are taking a huge risk.
Instead of taking chances with your investment, why not stay ahead of the curve? This way you position yourself as a leader in your industry.
Businesses that take this route are likely to create and harness opportunities for collaboration and partnerships with other businesses, growing networks. In addition, sustainable strategies will make your small business a preferred brand for more customers.
Woolworths, the first supermarket to use 2D barcodes in a bid to minimise waste, is already enjoying the benefits. The company has cut food waste by up to 40%. It’s no surprise therefore that the supermarket tops in the 2022 Australian Review on ‘Sustainability Leaders’
Attract and Retain High-Quality Talent
Despite being the backbone of the Australian economy, small businesses are still struggling with high employee turnover. And this is costing them thousands of dollars.
Most small business owners don’t think sustainability practices can be a driver. However, the University of Melbourne reports that more and more employees want to work with environmentally conscious businesses in Australia. Many know that working with such companies provides a greater sense of purpose, promotes employee engagement and fosters productivity.
In an interview with Bloomberg, Google CEO Sundar Pichai admitted that the tech giant aims to shift to 100% renewable energy. And it’s not just due to climate change. Pichai warned that companies that don’t follow suit will not be able to attract talent in the future.
Enjoy Government Incentives
Increased awareness on matters of sustainability has led to a rise in support from many governments and nongovernmental organisations across the globe. This support often comes in the form of policies, tax savings, funding and incentives, and more.
For instance, Australian entrepreneurs stand to benefit from incentives offered to encourage businesses to adopt sustainable practices.
How Small Businesses Can Implement Sustainable Strategies
Now that you know why eco-friendly practices matter, here’s what you can do to adopt them:
- Think cyclically, not linearly: What waste do you create? What can you do to minimise or reuse?
- Go digital: Apart from being good for the planet, digitising business processes leads to better organisation, faster transactions, increased transparency and better work.
- Re-evaluate your supply chain: Invest in eco-friendly delivery practices and partner with like-minded supply chain partners.
- Introduce a take-back program: Encourage your customers to return used products to be reused as raw materials.
- Invest in renewable energy
- Partner with other eco-friendly businesses and non-profits
Eco-friendly business practices are shifting at breakneck speed from a “something nice to have” to a “must-have” strategy. Small businesses that don’t notice the trend and act on time are likely to miss the bus. Contact us today to speak with one of our business strategists to get started or learn more about how to grow your business.
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