A Look at Sustainable Business Practices

In today's world, there's plenty to worry about: the economy is still in trouble; gas prices are still through the roof; worst of all, the environment isn't doing too well. While there is no immediate and obvious solution, it's important for the modern business to work as hard as possible to be two things: lean and sustainable. Micro Solutions Enterprises, a manufacturer of compatible imaging products, is an excellent model of exactly that. The same is true of publishing giant McGraw-Hill, computer giants IBM and Microsoft, and Hartford Financial Services Group.

Why bring up such a disparate group? Precisely because they are disparate. Spread across multiple industries, working at diverse financial levels with widely different numbers of employees, these companies have common ground in their sustainability.

Green practices are good for more than just the environment, though. These companies are all seeing benefits, ranging from waste reduction and the associate profit hike to the less quantifiable (but equally powerful) goodwill of their customer base.

So what are these companies doing that other companies are not?

Sustainability: How and Why

1.  Reducing emissions. Doing something as simple as upgrading electronics and appliances to those with the Energy Star seal of approval can do a great deal to reduce air pollution. The emissions released by this equipment are a contributing factor in climate change. Doing something about it? That's a source of pride, as well as a saver on energy bills.

2.  Waste reduction. This saves the business money on the cost of removing waste. It also costs the business less in the long run, as waste reduction is achieved best through an overhaul of consumption. Some common techniques for waste reduction include:

--Opting out of mailings and catalogues.

--Buying recycled materials.

--Using refurbished or remanufactured goods (in fact, Micro Solutions Enterprises has made a business out of selling remanufactured and compatible imaging and printing products).

--Engage the workforce in recycling, reusing, and returning.

--Redesign greener product packaging. 

3.  Green power. Many companies are utilizing renewable energy sources for part of their electricity needs. Installing solar panels, wind farms, or hydroelectricity farms at your base of operations can reduce costs and set a precedent. If you can't do those kinds of installs, contact your utilities provider to determine whether they provide renewable or "green" power.

4.  Conserving water. Water consumption isn't the first thing people consider when they think of energy, but it does affect everything. Gas and electricity are used to heat water. The water company uses energy to bring water into your offices and warehouses. If a company has leaky pipes, aging water heaters, and dripping taps, they can save money (and the world) by attending to those things.

 

Failure in Business: A How-To Guide for Reality

Ah, the American Dream. It seems that everyone wants to start his or her own business. Why wouldn't you? You get to be your own boss, set your own hours, and make all the decisions. But most people have this idea that being an entrepreneur is a fast lane ticket to a jet-setting lifestyle, complete with waterfront properties and expensive champagne.

Entrepreneurs who have succeeded – like the CEOs of PayPal, Micro Solutions Enterprises, Spanx, reddit, or any of a number of other industry giants – will tell you that this is not the case.

The reality is much bleaker: the vast majority of businesses in the vast majority of industries are doomed to failure. Failure is so common that smart writers are capitalizing on it by penning "How-To" books on succeeding in business.

Obviously, these books aren't working. So why not take the opposite tack, and read up on what people have been doing wrong? Here are some guaranteed "oops" moves that will leave you filing for bankruptcy. Avoiding these doesn't guarantee success, but to paraphrase Thomas Edison, it will give you ten ways not to succeed (he has a number of quotes about the value of stick-to-it-iveness, if you're interested).

Overestimating sales, by a lot. 

You assume you're going to sell 1,000 of something, even though Wal-Mart sells it cheaper, because yours are local and cool. Or you assume that you will have a certain number of clients or subscribers. Either way, you're wrong – and you're out of business. Good entrepreneurs assume they will operate at a loss for at least a quarter.

Underestimating costs, by a lot. 

You assume that accounting for rent, utilities, overhead, insurance, taxes, supplies, and advertising means you've covered it all. Think you're right? You're wrong.

Assuming that you are a snowflake. 

You aren't unique. If your business venture belongs to a category marked by failure, you will probably be marked by failure. Don't get into the game without something real to offer. MicroSolutions Enterprises' CEO Yoel Wazana saw a need for cheaper printing and imaging products, and made that happen. Sara Blakely, of Spanx, Inc, saw a need for a discreet slimming garment for women. Neither of them would have succeeded had they opened a Sno-Cone retailer in Alaska. 

Ignoring location. 

This is particularly true of retailers – who often make the mistake of ignoring the neighborhood and nearby businesses – but it works for web-based companies, as well. In the real world, locating your upscale clothing boutique in a parking lot with a pawn shop, a coin-operated laundry, and a dollar store is a bad move, no matter how cheap the rent. The same is true of buying ad space on a high-traffic website that isn't visited by your target demographic. The numbers game should be about quality, not quantity.