Unit-2

Project management and entrepreneurship

Entrepreneurial idea and Innovation

2. Consider alternative forms of company ownership.

The traditional top-down business model can create unreasonable wage

gaps between those at the highest rungs of the ladder (CEO, other C-
level executives, founders, managers) and those at the lowest (laborers
tasked with creating raw materials or carrying out the manufacturing
processes). Including everyone in your sustainability goals can help you
keep your business on track and give those who are typically
disadvantaged a larger say.

3. Engage your customers.

Going green can improve your brand reputation among consumers, but
your dedication to sustainability may result in higher prices. But that’s
OK; in a compelling blog post, series of posts or dedicated brand story
page, tell your customers why they’re paying more for your products.

You might choose to engage customers by pledging a percentage of

revenue to support a charity or by offering different shipping or
packaging options. Customers who love your product can be converted
into brand ambassadors when you create messaging that resonates with
them.

If you involve your customers in your discussions about sustainability,

they will become more invested in your company’s success and your
products. You could also consider crowdsourcing sustainability ideas
from consumers through a forum or online group.

2. Consider alternative forms of company ownership.

The traditional top-down business model can create unreasonable wage

gaps between those at the highest rungs of the ladder (CEO, other C-
level executives, founders, managers) and those at the lowest (laborers
tasked with creating raw materials or carrying out the manufacturing
processes). Including everyone in your sustainability goals can help you
keep your business on track and give those who are typically
disadvantaged a larger say.

3. Engage your customers.

Going green can improve your brand reputation among consumers, but
your dedication to sustainability may result in higher prices. But that’s
OK; in a compelling blog post, series of posts or dedicated brand story
page, tell your customers why they’re paying more for your products.

You might choose to engage customers by pledging a percentage of

revenue to support a charity or by offering different shipping or
packaging options. Customers who love your product can be converted
into brand ambassadors when you create messaging that resonates with
them.

If you involve your customers in your discussions about sustainability,

they will become more invested in your company’s success and your
products. You could also consider crowdsourcing sustainability ideas
from consumers through a forum or online group.

Definition of innovation – What is innovation?

Innovation is the process of taking something that already exists and improving it, whether it
is a product, a service or even a process. It can be as simple as making a small change or as
complex as completely overhauling an entire system or creating new marketing with a new
product. But whatever form it takes, innovation always involves creativity and risk-taking.
Innovation can be a key driver of economic growth, and companies that can innovate
systematically tend to be more successful than those that do not.

Innovation often comes from individuals with an idea, but companies also invest heavily in
innovation and the creation of new products and services. Several key factors contribute to a
company’s ability to innovate. One of the most important is having a strong innovation
culture. This means fostering a climate in which employees feel encouraged to come up with
new ideas and are rewarded for taking risks. Another critical factor is having the right
resources, such as R&D labs, design teams, management support and funding. Finally, it is
essential to have a clear strategic vision that supports innovation and helps guide decision
making.

To innovate successfully, companies must be able to identify opportunities and seize them.
This involves observing the market and understanding what customers want and need. It also
requires anticipating trends and being willing to experiment with new ideas.

Innovating and introducing innovations into the marketplace can be challenging, but it is also
a beneficial process for companies. It can generate higher profits, faster growth, secure a
competitive advantage, improve margins and sometimes even world-changing discoveries.
Innovation is the specific function of entrepreneurship, whether in an existing business, a
public service institution, or a new venture started by a lone individual in the family kitchen.
It is the means by which the entrepreneur either creates new wealth-producing resources or
endows existing resources with enhanced potential for creating wealth. – Peter Drucker

8 Fields of Innovation

Innovation can be in different forms and outcomes. When we talk about innovation, most
people think of new products while there is a wide array of different innovation outcomes
possible. Here we list the most common

1. Product & Product Performance Innovation

Either a new product is developed or the performance of an existing product is improved.
This kind of innovation is very common in the business world.

2. Technology Innovation
New technologies can be also the basis for many other innovations. The best example was the
Internet, which was itself an innovation but also lead to other innovations in various fields.

3. Business Model Innovation

Many of the most successful companies in the world managed to innovate their business
model. Using different channels, technologies and new markets can lead to new possible
business models which can create, deliver and capture customer value. Digital ecosystems are
a well-known example of innovation using several technologies and creating a whole new
type of business. Digital Business models pose one of the biggest opportunities for innovation
at the moment.

4. Organizational Innovation
Managing and sharing resources in a new way can also be an innovation. This way it’s
possible to use resources and assets in a completely new way.

5. Process Innovation
Innovation in the processes can improve the efficiency or effectiveness of existing methods.
Possible process innovations involve production, delivery, or customer interaction.

6. Marketing / Sales – New Channel Innovation

New methods to capture and hold attention from customers. Either through the use of
innovative marketing/sales concepts or the use of new channels for customer
acquisition/sales.
 7. Network Innovation
By connecting different groups and stakeholders it might be possible to create extra value.
This type of innovation is very common due to the use of ICT services.

8. Customer Engagement / Retention

Innovative concepts that try to increase the engagement of customers and keep the retention
up. The goal is to have innovative models to keep the customers “locked-in” or engaged.

The 4 Types of Innovation

First, we need to understand that there are various ways that innovation can have an impact
on products, services, and processes. Most commonly we differentiate between 4 levels of
innovation depending if they open up new markets or when the technology is changing.

The 4 different types of innovation are

 Incremental Innovation
 Architectural Innovation
 Disruptive Innovation
 Radical Innovation
 1. Incremental Innovation
Existing Technology, Existing Market

One of the most common forms of innovation that we can observe. It uses existing
technologies within an existing market. The goal is to improve an existing offering by adding
new features, changes in the design, etc.

Example

The best Example for incremental innovation can be seen in the Smartphone market where
the most innovation is only updating the hardware, improving the design, or adding some
additional features/cameras/sensors, etc.

2. Disruptive Innovation
New Technology, Existing Market

Disruptive innovation is mostly associated with applying new technologies, processes,

or disruptive business models to existing industries. Sometimes new technologies and
business models seem, especially in the beginning, inferior to the existing solutions but after
some iterations, they surpass the existing models and take over the market due to efficiency
and/or efficacy advantages.

Examples

Amazon used Internet-Technologies to disrupt the existing industry for book-shops. They had
the existing market for books but changed the way it was sold, delivered and experienced due
to the use of disruptive technologies. Another example was the iPhone, where existing
technologies in the market (Phones with buttons, keypads, etc.) were replaced with touch-
interface-centered devices combined with intuitive user interfaces.

3. Architectural Innovation
Existing Technology, New Market

Architectural innovation is something we see with tech giants like Amazon, Google, and
many more at the moment. They take their domain expertise, technology, and skills and apply
them to a different market. This way they can open up new markets and expand their
customer base.

Examples

Especially digital ecosystem orchestrators like Amazon and Alibaba use this innovation
strategy to enter new markets. They use existing expertise in building apps, platforms, and
their existing customer base to offer new services and products for different markets. A
recent example for this: Amazon recently entered the medical care field.

4. Radical Innovation
New Technology, New Market

Even it is the stereotypical way most people see innovation; it is the rarest form of them all.
Radical innovation involves the creation of technologies, services, and business models that
open up entirely new markets.

Example

The best example of radical innovation was the invention of the airplane. This radical new
technology opened up a new form of travel, invented an industry, and a whole new market.

What is idea generation and why it's important?

Idea generation is described as the process of creating, developing and communicating

abstract, concrete or visual ideas.

It’s the front end part of the idea management funnel and it focuses on coming up with
possible solutions to perceived or actual problems and opportunities.

Tools and techniques for generating ideas

Okay, now you need ideas. What do you do?

The odds are that you’d run a brainstorming session. It has, however, been shown that
brainstorming not only takes more time and leads to less ideas, but also worse ideas than if
the same participants had just tried to come up with ideas by themselves.

There are several other reasons why brainstorming may not be the best way to come up
with ideas. Scheduling, organizing and documenting the session in a usable format will all
take up even more time.

Although there are certain ways to improve brainstorming performance, it’s beyond the
point. The point is that you shouldn’t automatically default to brainstorming.

here are, however, some other useful techniques that might be worth giving a shot to
challenge conventional thinking. Because you're going to need different ideas, it's good to
have a few techniques in mind for generating them. Most of these ideation methods can be
used for more effective brainstorming but also for other type of ideation.

Idea Challenge

Idea challenge is a focused form of innovation where you raise a problem or opportunity
with the hopes of coming up with creative solutions.

The point of idea challenge is to participate in ideation and generate ideas around a pre-
defined theme for a limited period of time.

It allows you to form a specific question and direct that question at a specific audience to
receive new ideas and unique insights.

Before setting up an idea challenge, it’s important to define what you want to accomplish
with it.

Because there are two types of idea challenges, problem centric and solution centric
approaches, you should first clarify whether you’re looking to identify
challenges or develop potential solutions for them.
When organizing an idea challenge, there are different parameters that you can choose to
achieve the outcomes you’re looking for, such as theme, audience, responsibilities,
time, or channels.

Keep in mind that idea challenge is the best technique when you need to generate lots of
new ideas. It may not be the most effective way to generate ideas if you only involve a few
experts in your ideation process as it’s proven to be more useful for engaging large
audiences.

Although idea challenge enables you to gather lots of ideas fast, careful planning takes
time and might not be worth the effort if there are no resources to execute it properly.
Also, right timing is necessary for it to succeed.

If you're interested in running your very own idea challenge, we've written a
comprehensive guide to idea challenges, which you can download here.

SCAMPER Technique

The SCAMPER technique is created by Bob Eberle, and is a method used for problem-
solving and creative thinking. It’s a holistic way of applying critical thinking to modify
ideas, concepts or processes that already exist.

The purpose of the SCAMPER is to make adjustments to some parts of the existing idea or
process to reach the best solution. It consists of seven actions that can be used to replace
parts in the process:
1. Substitute – Substitution technique refers to replacing a part of your product, concept
or process with another to achieve even better outcome.

2. Combine – The combine technique explores the possibility to combine two ideas into a
single, more effective solution.

3. Adapt – Adaptation analyses the possibilities to make the process more flexible and
focuses on other similar incremental improvements to the idea, process, or concept.

4. Modify – Modifying the idea looks at the problem or opportunity from a bigger
perspective and aims for improving the overall results, not just the idea.

5. Put to another use – This approach focuses on finding ways to use the idea or existing
solution for another purpose and analyses the possible benefits if applied to other parts of
the business.

6. Eliminate – The elimination technique is quite straightforward: it examines the possible

outcomes if one or more parts of the concept were eliminated.

7. Reverse – This action focuses on reversing the order of interchangeable elements of an

idea.

Although the SCAMPER technique was originally designed for brainstorming sessions, it
can be applied to your own thought processes as well.
Often, people tend to focus on finding the next big idea. When generating new ideas, it is
easy to forget that the continuous incremental improvements are the ones that really make
an impact in the long run.

When you make ideation a constant practice, you’ll have a good chance to win that big
idea through a number of small ones. Sometimes, all it may take is to have look at what
you’ve already got. Using your existing ideas or processes as a starting point can reveal a
lot about your current situation, which is what the SCAMPER technique is about.

Opposite Thinking

Opposite/reverse thinking is a technique that can help you question long-held

assumptions related to your business. It’s a useful tool to consider if you feel your team is
stuck with the conventional mindset and coming up with those “out-of-the-box ideas”
seems to be difficult.

Often, finding the best solutions aren’t found through a linear thought process. Although
our brains are wired that way, opposite thinking can help us question the norm.

With this type of thinking, you consider the exact opposite of what’s normal. You can
even think backwards to find unconventional solutions.

What is a Business Opportunity?

A business opportunity provides an individual or a company with an amazing chance to
expand their current operations, initiate new offerings, and turn a profit. It can be found in
any industry and often exists due to factors such as technology advancements, product
development, market changes, skill gaps, and even financial benefits. Identification of
entrepreneurial opportunities is an effective way to jumpstart your business endeavors.

The world best business opportunity offers advantages that include better access to resources,
relatively easy entry into competitive markets, lower start-up costs, and the potential for
significant profits. Whether you are a budding entrepreneur or an established business owner,
exploring opportunities can open the door to increased success.

Importance of Business Opportunity

Business opportunities are essential for business growth and success. Having the right
opportunities gives business owners, entrepreneurs, and investors the ability to maximize
their potential and create a successful business enterprise. Identifying business opportunities
can allow companies to increase their revenue streams by providing unique products,
services, or an innovative approach to a problem.

Identification of business opportunities in entrepreneurship is an important step to

kickstarting your career as an entrepreneur. There are numerous possibilities for
entrepreneurs to explore, including harnessing technology or creating a new niche in an
industry or sector, as well as identifying opportunities that involve taking advantage of
changes in consumer behavior or leveraging resources from other businesses. By correctly
following well-defined steps in the identification of business opportunities, anyone has the
potential to find success in entrepreneurship and create lucrative business ventures.

Having new business opportunities also provides access to increased capital resources,
enabling businesses to invest in employee development, technology upgrades, and other
growth strategies that can help propel business objectives. Therefore, paying close attention
to available entrepreneurial opportunities is incredibly important for any business, regardless
of size or industry.
Types of Business Opportunity
Let's next explore some of the common types of business opportunities.
New Market Opportunity
New Market Opportunity is a specific type of business opportunity that focuses on growing
an existing business into a new and untapped market. They are attracted to companies that
seek the potential for rapid growth but can be risky because the risks may be in markets
where the business is unfamiliar.
Companies looking to take advantage of new market opportunities need to understand the
market conditions, do their due diligence on needs and regulations, and make sure
expectations are realistic.

Distributorship
For business owners looking to generate business growth, a distributorship business
opportunity can prove to be an invaluable asset. Distributors sell products for manufacturers,
thus giving them access to a wider customer base with less effort.
There are no entry barriers when joining a distributorship business, so this business
opportunity is perfect for those hoping to make their mark on the business world with
minimal investment. Furthermore, by collaborating with professionals in their field, business
owners have the potential to learn and grow their skill sets while also growing their
businesses.

Competitive Opportunity
Competitive opportunity is one such business opportunity that stands out. It allows business
owners to secure more business and stay ahead of the competition. This business opportunity
offers a better return on investment through strategic planning, dynamic marketing strategies,
and leveraging technology and data to drive growth efficiently.

Franchising
Franchising is a business opportunity that provides an innovative way to start and expand a
business. It allows an individual or business to leverage the proven business model of another
company and grow their business quickly while typically involving fewer risks.
This business opportunity supports the development of new business models, bringing more
flexible options to entrepreneurs who are just starting or established business owners looking
to diversify their brands.
Technology Opportunity
Technology opportunity is a great business prospect for those interested in staying abreast of
today's cutting-edge developments. Rather than relying solely on traditional business models,
savvy entrepreneurs are turning to these new tools and services that can provide the means to
bridge the gap between their business goals and the technology solutions necessary to achieve
them.
As a business opportunity, technological solutions offer sizable returns due to their flexible
deployment, cost efficiency, and ability to tailor solutions specifically designed for each
enterprise's needs.
Marketing
Marketing is an ever-evolving business opportunity that should be given serious
consideration by prospective business owners. By using techniques to understand customer
needs, create interesting and effective campaigns, and measure the success of those
campaigns, business owners have the potential to dramatically increase the profit margins of
their clients while also creating a positive brand identity and strong customer base.

Licensing
Licensing is a business opportunity that offers the perfect balance of autonomy and support.
Through licensing agreements, business owners join forces with existing business entities to
share branding, resources, and customer bases. This offers the chance to benefit from the
existing strength of a business without having to build up your market presence from scratch.

Niche Opportunity
By honing in on a particular market or demographic, you can identify needs that would not be
apparent in heavily saturated business arenas. Focusing on niche markets allows for the
development of customized approaches to business success with greater precision and
accuracy than the traditional business model.

Business Opportunities from Home

Business opportunities from home are increasingly popular in opportunities identification,
allowing entrepreneurs to start and maintain their businesses without having to leave the
comfort of their own homes. From freelance writing to web design, business owners can take
advantage of the various opportunities available through a home-based business model.
This way they can have more control over their working hours, benefit from lower overhead
costs and develop something that would bring flexible financial success. By taking control of
your business operations in the comfort of your own home, you'll be better positioned to
increase productivity while making firm strides toward growth and prosperity.

Online Business Opportunity

Online business opportunities from home provide entrepreneurs a chance to leverage their
business ideas, develop their business plans, and launch their companies into the global
marketplace without the traditional overhead cost of renting commercial space.
A business opportunity example of this kind would be setting up an online retail store that
will allow customers to purchase products with ease and convenience. Drop shipping
 business is another best business opportunity example to consider with low risk and
investment costs.
These opportunities provide access to products and services for business owners who are
looking for faster and more efficient ways to reach potential customers. It also allows
business owners to customize their offerings with creative marketing solutions and to have
better control of business operations.

Identify Business Opportunity

Whether it's new business opportunities or entrepreneurial opportunities, there are many ways
to identify business opportunities. Let's take a look:

Observe changes in the Environment

Society is a living organism changing with time and space. Therefore, observing the social,
political, economic and technological changes in the Environment is relevant in the
identification of business opportunities.

 Social changes are crucial for the inception of new business opportunities. For instance, the

merging perspective on beauty and cosmetic industry has paved the way for clean and guilt-

free products. Many brands have taken advantage of this and launched their niche products to

compete with the ever-dominant brands. You should keep a keen eye on the political

changes as well. Introducing new government policies can impact market behavior and

expand the scope of various sectors as we know. For instance, the economic policy

introduced in 1992 liberalized the Indian market to enhance free trade.

 Economic changes are highly relevant to business opportunities identification. Many factors

can contribute to economic changes, social, and technological, policies, and regulations. It's

all interconnected and who knows, it could lead to the identification of business opportunities

in entrepreneurship. Most technological changes pave the way for entrepreneurial

opportunities and new business opportunities. Some of the world best business opportunities

have been a result of the technological impact, like AI's penetration.

 Identify Unsatisfied Need Often unsatisfied needs give birth to world best business

opportunity. Listen to your customers and identify problems that need solving, and

potentially identify opportunities. Malls came into existence, replacing the traditional
 marketplace and highlighting convenient shopping under one roof. Now online business

opportunity like E-commerce is challenging the mall culture.

 Understand Problems Another way for identifying business opportunities is to understand

the problems faced by people. Understand what they want and how they want their needs

met. For how people needed groceries delivered at home, and now we do.

 Find Solution Often finding a solution to the problems faced by people presents innovative

and new business opportunities. For instance, instant grocery delivery services like Swiggy

Instamart or Blink are thriving.

Steps in Identification of Business Opportunities

Here are some of the steps in identification of business opportunities:
1. Conduct market research to identify industry trends, customer needs, and potential gaps in the

market.

2. Analyze the competition to understand their strengths and weaknesses.

3. Identify potential target markets and customer segments.

4. Evaluate the feasibility of the opportunity, including a financial analysis of the potential

revenue and expenses.

5. Develop a business plan outlining the strategy for pursuing the opportunity.

6. Test and validate the opportunity through market research and pilot projects.

7. Take the necessary steps to capitalize on the opportunity, like acquiring funding or

assembling a team.

Management skills required to become an entrepreneur

Entrepreneurs are the individuals who have the courage to take several risks and single
handedly operate their business. An entrepreneur is a leader, innovator, thinker and motivator
for his team. However, it isn’t an easy task to be an entrepreneur. There are specific
managerial skills that an entrepreneur must master in order to be successful in his ventures.
The essential managerial skills to become a successful entrepreneur are stated below:

Time Management

The most valuable asset for young entrepreneurs is their time. As an entrepreneur, you have
to take care of so many things together and time management is the key to keep everything
on track. It is vital to get more work done in less amount of time by eliminating interruptions,
prioritising tasks and increasing effectiveness as well as productivity. Effectual time
management allows entrepreneurs to assign specific time slots to the activities as per
their importance. It also gives them the ability to participate in economic forecasting and
market research.

Business Planning

Every entrepreneur needs to develop a business plan or a blueprint of how will he develop his
new business. A good business plan consists of a single document divided into several
sections including the description of the organisation, market research, sales
strategies, competitive analysis and financial data. A well-planned blueprint or project outline
acts as a strong foundation for the success of the venture. It facilitates the entrepreneurs to
make their business fit into the industry, identify their target market and plan to capture them.

Employee Management

An entrepreneur must know how to manage the people. He should be a good judge of
character and abilities of an individual such as hiring the right employee is the foremost step
for the success of a company. Successful entrepreneurs should know how to motivate the
employees in order to work effectively and contribute to garner customer experience.

Customer Management

An entrepreneur must know how to manage his relationship with existing customers with a
focus on creating loyalty towards his business. This is the easiest and most effective method
to increase revenues. Entrepreneurs must have problem-solving skills, communication skills,
attentiveness and patience to manage customers effectively.
Sales Management

Selling or sale management is an essential skill every entrepreneur must master. You need to
completely understand the sale activities. This helps the entrepreneurs to tackle the
challenges that they may face in their sale management journey.

Financial Management

Even if your business’s finance is handled by an accountant or a finance professional, you

must know planning, organising, directing and controlling the financial activities such as
procurement and utilisation of funds. With a good financial management system, one can
make decisions to improve the business operations.

Business Management

Being a successful entrepreneur involves more than enthusiasm and a good eye for new
opportunities. A thorough understanding of the essential business functions is a prerequisite
for entrepreneurs who want to take their business to the next level. They must have the
complete know-how of general management, finance, marketing, operations management,
purchasing, supply chain, human resources and public relations.

What is sustainability?

Sustainable means the ability to be maintained at a certain rate or level, and sustainable
development meets current needs without compromising future generations’ ability to meet
their own needs.

However, we must dig a little deeper to understand how the concept of sustainability is
relevant to business development.

What is a sustainable business model?

To Rex Freiberger, president of Superlativ Media, a sustainable business model helps

generate value for everyone involved, without draining the resources that help to create it.

“A business model meant to capitalize on a trend isn’t sustainable, for example, because the
social resources that get it started won’t exist in years or even months,” Freiberger said.

Lia Colabello, managing principal of Plastic Pollution Solutions, noted that there’s a
difference between a sustainable business model — a business that will likely achieve
profitable growth — and a business model that prioritizes sustainability.

“A sustainable business model is what every business leader hopes to achieve — a business
that will turn a profit quickly and stay afloat for the long term,” Colabello explained. “A
business model that prioritizes sustainability is one that, at a minimum, considers all
stakeholders, assesses and addresses environmental impacts, and is transparent and thorough
in its reporting.”

What makes a sustainable business model work?

There are four key elements of a sustainable business model.

1. A sustainable business model is commercially profitable.

You can make a profit and be socially responsible. No business can succeed or scale
unless it attracts customers. What is your value proposition? Who are your target
customers? Why is your business valuable, and what niche do you fill?

2. A sustainable business model can succeed far into the future.

A trendy business or one that relies on limited resources may be profitable for a few
months, but how will it fare in a year or two? Resource availability and pricing are never
guaranteed or fixed; you don’t want to build your castle on a sinking rock.

3. A sustainable business model uses resources it can utilize for the long term.

You can’t have a sustainable business model without sustainable resources. Many
business activities are limited by finite resources or exceptionally high prices. On the
other hand, some resources may be readily available yet environmentally harmful.

Palm oil is a famous example of a cheap and plentiful resource. However, farmers are
razing acres of land and causing severe environmental destruction by cultivating the
crop. Cheap resources may be tantalizing for business, but consider the big picture
instead of taking a shortcut now.

4. A sustainable business model gives back.

One theory is that a truly sustainable business model is one that gives as much as it
takes. This concept is called the cyclical borrow-use-return model.

Bob Willard, expert and author on quantifiable sustainability strategies, contrasts this
model with the current “linear take-make-waste model” that so many modern businesses
are built upon, which he said is “culpable for contributing to [this world’s]
unsustainability.”

Instead of taking from the Earth, a sustainable business “borrows” resources with the
intent to replenish them. This concept of responsible consumption is one that both
businesses and consumers can promote and practice.

What is a sustainable strategy?

A sustainable strategy takes the big picture into account. “A sustainable strategy is one that
understands the flow of ‘in’ and ‘out’ — not just cash flow, but again, the resources, both
tangible and intangible, that are required to create the product or service,” Freiberger
explained.

Colabello noted that the most effective sustainability strategies start with an organization’s
purpose. She encouraged businesses to ask these questions, similar to what you’d ask when
crafting a vision or mission statement:

 Why does the organization exist?

 What problem is it solving?
 How is it going to improve the world, environment and society?

“From there, a strategy can emerge that engages the entire brand ecosystem — internally, the
supply chain, its communities and its industry,” Colabello said. “The approach is prioritized
and diagrammed out, complete with goals, KPIs [key performance indicators] and a timeline.
These are communicated both internally and externally, in keeping with transparency.”

Why do we need sustainable business models?

There are many ways to approach the issue of sustainability, but the simplest one, which can
unite all stakeholders, is this: Kind businesses attract more customers. According to the 2022
Global Buying Green report, 86 percent of consumers under 45 were willing to pay more for
sustainable packaging, and 68 percent purchased items in the past six months based on
companies’ sustainability credentials.

It’s OK to be open about your sustainability goals and use your sustainability as a selling
point. Customers will ask, and the friendlier you are about it, the more likely they will be to
share that news with their friends.

But maybe you’re not motivated entirely by money. Perhaps you’re driven by the desire to be
the change you’d like to see in the world.

After all, the larger a business grows, the greater its impact is on the world and the people
around it. And it’s better to start sustainably than to make the switch 10 years down the line
— or when stakeholders begin pushing back on unreasonable business practices.

How can you start and maintain a sustainable business model?

Getting started with a sustainable business model can be straightforward. Consider the
following guidelines.

1. Plan your resource usage.

Consider the resources your business requires to operate, and then do the following:

 Make a list of the raw materials you’ll need. This list will vary dramatically by
business type. Software-as-a-service companies, for example, don’t require the
raw resources that clothing brands do.
 Consider where your materials might be sourced. Who is making or harvesting
your product materials? How are they being sold?
  Consider where the resources are coming from and how they are being
transported. How far do they have to travel to arrive at your home or
warehouse? How can you cut down on fuel miles? What are the riskiest resources
on your list, and how can you increase their productivity while lessening your
dependence on them?

After you address your resource usage, outline your manufacturing and business
processes. Ask yourself these questions:

 Which manufacturing processes are the most wasteful? How can you mitigate the
adverse effects of these processes?
 For physical materials, is it possible to source locally?
 How are you packaging your products? (Sustainable, biodegradable packaging
can reduce the amount of trash stuck in landfills.)
 Which materials on your list are the riskiest or least sustainable? How might you
replace them? Could you replace them now?
 What are the end products of these processes? How can you reuse waste material?
Does it have to be thrown away?
 Can the produced waste be used as a resource or be fed into a different process to
be used again? How can you reduce unusable waste?
 Where can you reduce waste? How can you stretch your raw materials? Can you
lower the number of resources used to create a specific product while maintaining
its quality?
 What are the labor conditions like? Are your laborers being paid fairly? Is their
quality of life improving or worsening because of your business processes? Is
their time being respected?

2. Consider alternative forms of company ownership.

The traditional top-down business model can create unreasonable wage gaps between
those at the highest rungs of the ladder (CEO, other C-level executives, founders,
managers) and those at the lowest (laborers tasked with creating raw materials or
carrying out the manufacturing processes). Including everyone in your sustainability
goals can help you keep your business on track and give those who are typically
disadvantaged a larger say.

3. Engage your customers.

Going green can improve your brand reputation among consumers, but your dedication
to sustainability may result in higher prices. But that’s OK; in a compelling blog post,
series of posts or dedicated brand story page, tell your customers why they’re paying
more for your products.

You might choose to engage customers by pledging a percentage of revenue to support a

charity or by offering different shipping or packaging options. Customers who love your
product can be converted into brand ambassadors when you create messaging that
resonates with them.
If you involve your customers in your discussions about sustainability, they will become
more invested in your company’s success and your products. You could also consider
crowdsourcing sustainability ideas from consumers through a forum or online group.