You created an eco-friendly business to make a living and help the planet at the same time. Unfortunately, both of these goals will be for naught if you don’t have a strategy in place to ensure your business will be able to survive.
The survival rate for small businesses is not very high. Around 20% of small businesses fail in their first year and 50% go bankrupt within five years. The failure rate for eco-friendly businesses appears to be even worse.
You might think that running an eco-friendly business can actually improve your chances of success, because so many customers want to support green businesses these days. Sadly, that isn’t particularly true. Harvard Business Review published an article title “The Elusive Green Consumer”, which documented the challenges eco-friendly businesses have with reaching customers that claim to support green businesses, only to bail when they are faced with a higher price tag (which contradicts polls showing that they will support eco-friendly companies).
You need to take the right steps to create a thriving green business.
7 Steps to Ensure Your Eco-Friendly Company is Setup for Success
Have you ever wondered about the similarities between raising a concrete structure and a business? In both cases, a planner envisages the idea, lays the groundwork, and puts in immense work hours. In both cases, we ensure a solid buildup to make sure it reaches a towering height. This is especially true for starting green businesses, since they take such a huge investment.
The truth is after we succeed in raising a business, we would never want to lose it. It essentially means that we would do everything in our power to ensure it stays out of trouble, out of harm’s way. We aspire to see it prosper and grow without limits and achieve expeditious progress.
If your eco-friendly business ever comes to a screeching halt, here are some ways to haul our venture out of harm’s way.
1. Run a Comprehensive Digital Check
It is crucial to spot and identify the problem before you can even begin to resolve it. You can find the anomalies by using one of the digital platforms and software created for the purpose. But to do so, you will need to have a) meticulous software and b) a team that can do the job.
This highlights the significance of digital education for the workforce. Every green business needs a team that’s aware of contemporary computer programs and resources. More so, they need to know exactly how to use them to achieve their specific objectives.
2. Gain the Knowledge to Tackle Crisis
It is imperative to have a certain set of knowledge to tackle the crisis at hand. But in doing so, one must never just jump the bandwagon and do what everyone else is doing for no good reason. For instance, you shouldn’t opt for a degree course that requires a Graduate Management Admission Test (GMAT) if running your company doesn’t require it. In such a scenario, you can choose an online MBA no GMAT to gain vital knowledge while working on your business. Many green entrepreneurs thrive by taking this approach.
3. Outsource the Issue’s Identification
It is a magnificent approach for a business to have a vibrant team in place that can identify a problem on time. But not every venture is prepared to face a crisis, and so, it may find itself off-guard in meeting the challenge. So, what should an owner do in such a scenario?
The first thing to ensure in such a situation is to avoid deciding in haste. Accepting that an in-house crisis cannot be catered to at once, one should decide to outsource the resolution. Needless to say, opt for hiring some of the best people to fulfill the task well.
4. Take Every Team Member On-board
Working in a crisis in such an environment can never be an easy task to deal with. This is why it is vital to take every team member on board and unite them for the cause. Every member of the workforce will need to act as a proactive unit. We know it may be an uphill task to perform, depending on the internal structure of the business. You may need to organize urgent meetings, take people into confidence and resolve issues related to hierarchy. Once it’s done, the fruits that the process will bear will be eternal.
5. Pay Attention to Business Critiques
Criticism is never easy to take, and when it is about your venture, it is even more difficult. But when you are up against a crisis, you need to take every bit of criticism seriously. Listen to what your competitors and other stakeholders in the market have to say and act according to it. However, in doing so, make sure that you choose your rivals carefully. It essentially means that you review each analysis carefully or, in other words, take every piece of advice with a grain of salt. You may convey it to the team or assign them the task to maintain a logbook comprising the feedback.
6. Plan Financial Revival with Experts
One of the things that are a must to take the plunge during a crisis or a recession is the finances. It is the time when owners see their hard-earned capital declining or going to ashes. It is harsh, and it takes a toll on the financial state of an institution, so it is necessary to plan some urgent measures. Sit down with some of the best financial experts in the marketplace and discuss how you can carry out damage control. Next, deliberate on how you can begin to sustain what’s remaining and edge towards a revival. Lastly, discuss creating a contingency plan for crises in the future. You can also invest in some financial and accounting software applications. These are some of the tools every green business needs.
7. Do Not Prioritize Any Layoffs
A crisis or a recession is always a testing situation, and so, one must deal with it accordingly. In tough times, it is easier to be inclined towards some immediate layoffs. The thought behind it is to help save on the finances and secure whatever is left with the venture. But before you contemplate the step, think about the consequences. Instead of considering layoffs, why not utilize the resources and optimize their skills to achieve the best performance? This way, you will be planning not just for the immediate scenario but for a better future too.
Take the Right Measures to Save Your Green Business
Every eco-friendly business may, at one time or another, face a difficult situation. It is better to be prepared in advance to tackle the situation well and turn it in your favor. Doing so is possible by incorporating some of the points discussed above. Remember, a little thoughtfulness can enable you to find new ways of reorganizing your business, so go for it!