Tips for guaranteed profitability & sustainability

Businesses of all sizes, specialties, ages and locations are steadily proving that they don’t need to choose between profitability and sustainability any more. They can have them both.

But what elements and factors does your business need to take into consideration to ensure steady growth and increased profits? What roles do stakeholders, statistics and innovation play in lowering risks, preserving resources and taking your business to the next level? Let’s explore this topic together.

The road to profitability & sustainability:

Wisely choose your stakeholders

In this day and age, focus on climate change related issues has become very important for ensuring business sustainability. This means that your business must look at the big picture when choosing its stakeholders. Moreover, it means that your business should ease into sustainability transitions by:

• Exploring scenarios that could affect your success and developing plans for them.
• Learning from work done by NGOs, academics, accountants and so on.
• Placing greater emphasis on material risks and perceived target audience.

Furthermore, your business must carefully consider board members and ensure that they take a holistic approach of both short term and long term objectives, goals and risks.

See Also: How to Effectively Use Cultural trends for Brand Growth

Focus on the numbers

For CFOs, number are not just a reflection of expected losses and revenues any more. They also need granular data that quantifies environmental values. To develop a long-term profitability and sustainability strategy, your business needs to quantify data related to both market changes and climate changes. Moreover, it needs to reflect the effects of that data into its future balance sheets. This helps long-term investors get on board faster and stay committed to your business growth and success.

Go for innovation

Sometimes, your business environment forces you to move into profitable sustainability. One of the reasons why this might happen is lack of resources. To successfully apply this ‘forced innovation‘ into your business model, you need to follow one or more of the following approaches:

• Have a long view when thinking about large investments that could dramatically save you money and resources in the long haul.
• Use bootstrapping to make small changes in your processes that can lead to cost savings.
• Spreading out sustainability efforts in a manner that is hard to imitate by your competition.

See Also: How to Use Growth KPIs to Expand Your Startup

Think of your consumers

Finally, to guarantee both profitability and sustainability, you need to be consumer-driven. This means that all your actions and plans should be lead by your consumers’ needs. Failing to apply this can leave you with a product or service that no one really wants even if it is a break through innovation that has potential to yield great profits.

What is your business doing to increase profits and sustainability? Do you have other tips, tactics and advice to share with our readers? We look forward to your insights in the comment section below. 

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