Building a sustainable business model
It is very important for an entrepreneur to realise the importance of a sustainable business model. Broadly this encompasses a company that is equally grounded in environmental, social and financial concerns. Sustainable businesses are not only good businesses, but are good for the environment around us too.
Here are some ways in which you can build a sustainable business model:
- One should build a business on belief
Everything in the business can be changed except the core beliefs on which the company was started. While the vision and mission of the company may be written in stone, the actual playing out of the vision is likely to involve a process of continuous change. For example if the company’s vision is about value creation, then one needs to be able to constantly shift and adjust to changing times. If you continue to use old techniques or outdated products and services, this might lead to your company’s extinction.
The Kodak story is a classic example of a leading player in the photography industry, which had virtually a monopoly, but which eventually faded away into oblivion as it was not able to keep up with latest technological advances.
- Recognized that comfort and growth are inversely proportionate
In a globalized world like today, things keep changing in a blink of an eye. If you’re looking for growth, then prepared to be working out of your comfort zone. In any industry today, you have fierce competitors who may threaten your position. You will have to often leave your comfort zone and do something which shakes the market.
- Creating value propositions
A basic thing about any business is that it works on to drive value for their customers. It is very important to figure out your market strategy, in terms of realizing what your client is looking for.
After all, the client is the king. Thus, spending some time and effort on market research is important.
- Excelling in different eco-systems
When you’re in a market, it’s not like you’re delivering value to every client at every place. It is more like being a part of an eco-system. It is important to understand that you shall not be part of only one eco-system but possibly many. Ultimately it is important to leave your mark on each eco-system.
When compared to companies that work with goals of only short term profits and who make decisions based on this, sustainable companies have a much long-term vision. Such companies tend to build up strong relationships with their employees and members of society in general. These companies have a basic ideology of finding ways to reduce the amount of natural resources they consume and the amount of air pollution they produce. As a result of such long-term ideology, sustainable companies have a tendency to survive challenges such as global recessions, workers strikes etc.
Many entrepreneurs who have embraced the sustainable business model, have managed to save money, simplify operations and also build brand equity. Not only is this good business, but such models help to improve the environment and ensure that this planet is a better place for future generations.