Did you know that more than half of small business owners have at least $50,000 in their business bank accounts? What’s the secret to achieving financial security?
The reality is that there is no silver bullet for small business success. However, promoting sustainability—both financial and environmental—will prepare you for times when money is tight and maximize profits when revenue is flowing.
Prioritizing financial and environmental sustainability simultaneously will only benefit your business. For example, going paperless saves money on printing and paper costs and reduces waste. In this guide, we’ll cover the tips your small business needs to prioritize environmental consciousness and long-term financial stability.
Commit to careful planning
Developing and sticking to a budget is the first step toward financial sustainability. Whether you work with an accountant or financial planner or create the budget yourself, understanding your business’s cash flow is critical to your success.
Your budget should account for:
Fixed expenses, like rent, insurance, payroll, subscriptions, etc.
Variable expenses, like marketing, supplies, and shipping
Equipment rental costs (e.g., office furniture or delivery vehicles)
Fees for professional services, such as legal or consulting services
Taxes, including income and sales taxes
Expected monthly revenue, or the average you expect to bring in
Savings or debt repayment goals, such as the percentage of revenue you want to allocate to your emergency fund
Be honest with yourself and set realistic goals. While you may want to pad your emergency fund quickly, there’s nothing wrong with a slow and steady approach—and you don’t have to wait until New Year’s Day to start working toward your goals.
Consider the long-term
Use your budget to stay on track to meet monthly spending and revenue goals. At the same time, always keep your long-term goals in mind. Consider how investing more now could save on costs and reduce waste in the long run.
For example, perhaps you create and use digital waivers instead of paper forms. Here’s how this could benefit your business:
Eliminates printing and ink costs
Massively reduces paper usage and waste
Saves energy used for printing
Limits staff time spent printing, collating, and filing waivers
Prevents potential costly legal battles
Makes client experiences more positive (e.g., they can sign waivers ahead of time rather than at their appointment)
Of course, this is just one small switch. Audit your other business activities to find more sustainable, low-lift switches, such as shifting to digital-only marketing, choosing energy-efficient appliances and lighting, or offering remote or hybrid work options.
Embrace effective technology
Using the right technology makes your business more efficient, allows you to properly allocate resources, saves staff time, and moves more of your processes online to reduce paper waste. And when you use tools like a CRM to sync data and connect your team members, you can more easily facilitate green initiatives like remote and hybrid work.
Look for software that consolidates your data, prioritizes efficiency through AI and automation, and can grow alongside your business. Additionally, choose tech that promotes environmental sustainability, such as energy-efficient smart thermostats or a green search engine like Ecosia.
However, Smartwaiver urges businesses to be wary of free software. According to its guide, free technology providers often overpromise and underdeliver, have more lax security standards, lack tech support, and more. Ultimately, opting for free tools may not actually save money, and you could end up paying in non-financial ways (e.g., suffering a data breach and losing customers’ trust).
Give back
Finally, find time to give back to your community and protect the environment you live and work in. Consider promoting sustainability with CSR strategies like:
Donating or matching gifts to green initiatives and organizations
Organizing group volunteer activities with nonprofits that help the planet
Partnering with environmentally-focused nonprofits on marketing campaigns or sponsoring their fundraising events
Providing volunteer time off (VTO) to employees to give them more time to volunteer
Not only is this work fulfilling, but contributing to social good can boost employee morale, help you form new connections in your community, and enhance your business’s reputation. You’ll show that you care about your community and promote social good, earning the trust of new audiences.
Remember, you and your staff members are your business’s most valuable assets—prioritize your mental health and wellness to avoid the negative impacts of exhaustion and burnout. If things feel overwhelming, set aside time for self-care, take breaks, and delegate tasks. When you’re ready, get back to your planning and organization for the future.
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