Small Business Buyers: Why Net Zero is Better for Business
According to Statista, there were approximately 212.98 million small and medium-sized enterprises worldwide in 2020. You can only imagine the size of their collective carbon footprint! Although the attention is on what multinational corporations are doing to achieve net zero carbon emissions, I think we can do great work at the grassroots with local businesses.
Here’s the general thesis: acquire local businesses and reinvent how they operate. Dinosaur small businesses that do not have sustainable practices or don’t use modern technology can be goldmines. The initial investment may be a stretch, but capital to finance sustainable improvements is becoming more accessible. The goal is to reduce their carbon footprint, strengthen margins and fuel long-term growth, therefore increasing the value of small businesses that are the backbone of our economy.
Sustainability should be a strategic priority. Here’s how you can get started if you have recently bought a small business:
Pressure will continue to mount for businesses to operate more sustainably, and business owners urgently need to begin to think about ways to offset their impact on climate change. Sustainability has become an issue of strategic and operational importance for most companies, not just an issue of compliance.
- Offering remote work
- Going paperless
- Using sustainable products
- Making use of second-hand finds (Starbucks is a company to look up to!)
- Reducing, reusing, recycling
- Using sustainable packaging
- Making energy-efficient upgrades
- Using green web hosting services
- Doing business with green businesses
- Buying high quality carbon offsets
However, few companies have an organizational structure to treat sustainability as a material business issue. But business buyers have the chance to make it a core component of their strategy. If done right, this can strengthen profits and create value for the business in the long run, which the owner can capitalize on when they are ready to exit. Flow is another great case study.
Can you imagine the compound effects of all these micro businesses being repositioned as a greener and more sustainable business? No business is too small. All have a place in redefining prosperity and achieving net zero targets.
I implore BuyAndSellABusiness.com buyers to consider the environmental impact of their acquisition, and how they can reinvest to make it more sustainable. Protecting the planet and protecting our economy don’t have to be at odds. To be blunt, there’s no economy on a torched planet - that’s the attitude we need to usher in a better future.
Originally published here.
Opinions expressed here by contributors are their own.
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