One of the biggest misconceptions some businesses have about adopting eco-friendly behaviors is the false belief that it will drastically cut into their profit. In many cases, that ultimately isn’t true, and making green choices can actually help your bottom line.
Sustainable business practices might include using compostable or recycled mailers, opting for cloud-based storage instead of paper filing, and taking steps to minimize waste or pollution.
Green choices are always the best ethical and environmental choice, and they can also benefit you financially, too. In this post, we’re going to discuss five common reasons why sustainable business practices can boost your profit.
1. Customers Are Willing to Spend More with Sustainable Businesses
An increasing number of consumers all over the world are concerned about our environment, pollution, and climate change associated with global warming. As a result, a growing number of customers are doing more than just making sure they’re recycling: They’re putting their money where their mouth is, and are happily paying more with eco-friendly brands.
Approximately 73% of Millennials are willing to spend more on brands and products that prioritize green practices, which can include product development, manufacturing, shipping, and more. Approximately 7% said that they’re willing to pay up to 50% more, and 5% would pay 100% more.
At minimum, a large number of respondents of all ages said that they’d pay up to 5% more for brands using environmentally-friendly practices.
Focusing on sustainability gives you a distinct competitive edge, and it allows you to charge higher rates for your products and services. As a result, you can easily recoup any profit lost in investing into greener options and still increase profit at the same time.
2. Cloud-Based Storage Costs Less
It’s not true that all green solutions are automatically more expensive.
Cloud-based storage is a great example. Instead of relying heavily on paper storage and filing, businesses using digital storage through Cloud networks can save a massive amount of money that would have otherwise been spent on paper, ink, filing cabinets, and the space needed to store those documents.
And when you’re sharing files like contracts with multiple parties, this cuts down on shipping expenses, too.
It’s estimated that 82% of companies today are wasting billions of dollars on paper, especially once you factor in the “hidden” costs of time that come with needing to file, store, and find these documents.
With the average business spending about 3% of their total revenue on paper, switching to Cloud-based storage is more convenient in addition to being a money-saver both immediately and long-term.
3. Investors Take Note of Sustainable Businesses
Any investor worth their grain in salt is well aware of industry trends, so they all know that eco-friendly businesses are currently in demand. If you’re able to demonstrate several ways that your business will be adopting green practices with the assurance that it will be a core part of your brand’s unique selling proposition, they’re more likely to take notice.
For many brands with physical products, attracting high quality investors and securing competitive financing is key. Having more choices in financing available to you is always going to be to your benefit.
If you're a small business that's not at the point of needing investment, it's a great future consideration to think about if you have plans for growth. Setting these practices in place now can lead to greater financing down the road.
4. Eco-Friendly Conservation Efforts Cuts Ongoing Costs
A central focus of eco-friendly conservation comes down to reducing waste, even if it means a slightly higher up-front cost.
Even small changes like opting for reusable coffee cups in the breakroom instead of paper cups make a difference. When you’re opting for higher-quality, longer-lasting reusable items, you don’t need to keep continually investing to replace them.
The energy and water conservation efforts associated with eco-friendly brands is also an excellent money-saving opportunity. Lights that automatically turn off after five minutes of no detectable movement, for example, can decrease your power bills rapidly.
While it may not sound like much, having multiple lights in the office breakroom or bathrooms only lit while people are actively there can add up quickly.
Packaging is another outstanding example. Once you switch to a sustainable packaging option, it makes you aware of how many layers you were using before that may have been completely unnecessary. This can simplify costs, especially when packaging providers like noissue offer low minimum order quantities (MOQ) to keep things affordable for small and medium businesses.
5. Some Governments Offer Tax Benefits
Fully aware that some businesses need additional financial incentives to make the switch to more eco-friendly choices, some governments now offer tax benefits for doing so. These benefits may come in the form of tax credits or deductions depending on your country and what actions are taken.
You’ll want to check the government where your business is based to see what tax incentives are available, how they work, and what you need to do to quality for them, but here are a few to get you started:
If you have any questions about tax benefits, talk to to an accountant. You may even already qualify for benefits you don’t know about if you’ve made strides towards sustainable practices.
Final Thoughts
Eco-friendly business choices aren’t just important for the health of our world and climate; they can also actively save you money year-round by cutting costs while simultaneously helping you drive your profit up.
Sustainable businesses are increasingly prioritized by younger generations, leads by the Millennial and Gen Z generations, and there’s no reason to think that won’t continue long-term. Remember that even a few small changes can make a big impact overtime, and all you need to do is pick somewhere to start!
Are you interested in making steps towards increasing your sustainable practices and taking advantage of all the financial benefits they can bring? Start by checking out our sustainable, eco-friendly packaging!