Businesses are always adapting to meet the evolving needs of consumers around the globe. From technological advancements to changing societal views, there are several factors to consider in order to remain competitive.
So how can you successfully prepare your business for the next decade? While you can’t predict what’s to come, it’s important to be aware of trends and movements occurring in your industry and the business world at large.
One of the most notable recent business trends is the shift toward more environmentally friendly practices. Consumers are actively choosing to spend at stores that promote sustainable and ethical business models. It’s the result of a growing global conversation about the impacts of climate change.
With frequent natural disasters and research suggesting rising temperatures, the topic has been at the forefront of public and political discussion. So much so that in November 2019, ‘climate emergency’ was announced the 2019 Oxford Word of the Year.
So, what are the benefits of environmentally friendly business practices and how can you implement them?
Reuse to reduce costs long-term
Research shows that embracing sustainability delivers tangible business benefits. Reducing, reusing and recycling materials can lower your expenditure while improving the environmental impacts of your business.
This could be as simple as asking staff to print double-sided and avoid using paper unnecessarily, or something on a grander scale like utilising reused materials for product packaging. Ask your suppliers if their products are made from recycled materials and do thorough research to find the best options available.
Repurposing materials can also help to achieve lower costs. Shredded paper and leftover cardboard can be used as padding for shipping items. For cafes and restaurants, swapping plastic take-away cups for biodegradable ones can be a great start, or why not promote and sell keep-cups to reduce waste?
Attract new clientele
Make an impact by reducing your impact. A sustainability study conducted by Nielsen, a global measurement and data analytics company, found that 81 per cent of respondents felt strongly that companies should help improve the environment. In addition, 46 per cent said they would be willing to forgo a brand name in order to buy environmentally friendly products.
It’s clear consumers are using their spending power to favour environmentally friendly businesses, so be sure to promote your sustainable practices. This can help set your business apart from competitors and attract new customers who are likely to return.
Remain competitive and profitable
Customers are willing to forgo brands to spend at businesses they feel are doing their part to reduce their impact, but are consumers willing to compromise on cost?
According to Nielsen, 62 per cent of Australian consumers are either highly or somewhat willing to spend more on environmentally friendly or sustainable products. Of those surveyed, 59 per cent were likely to pay more for organic or all-natural ingredients, while 55 per cent were willing to pay a higher price for products that carry social responsibility claims. Eco-friendly businesses are therefore likely to remain competitive as consumers compromise on cost for the greater good of the environment.
Along with this, if you are less dependent on non-renewable resources than your competitors and have ways to deal with rising costs due to climate change, your business will have a greater chance of long-term success.
Stay updated as technology improves
Increasingly, smart technology is being used to drive more sustainable outcomes for businesses and is likely to advance over the next decade as more funding is invested to tackle climate change. As a result, your business will be able to take advantage of this new and improved equipment.
Industries like agriculture and mining will particularly benefit from the advancement of smart technology and many are already leveraging environmentally friendly business practices to give them a competitive edge.
Boost cash return by claiming depreciation
Whether you’re considering transitioning to a more sustainable business model or have already made positive changes, claiming property depreciation can help boost your business’s cash return.
As a property gets older, the building’s structure and the assets within it wear out – they depreciate. The Australian Taxation Office allows owners of income-producing properties to claim this depreciation as a tax deduction. These deductions can be claimed under two categories – capital works deductions and plant and equipment depreciation.
Owners and tenants of commercial property may be entitled to hundreds of thousands of dollars in depreciation, so it’s important to contact a specialist Quantity Surveyor to inspect your property.
The money saved through depreciation can be useful when considering further investment, the purchasing of new equipment or paying off any outstanding debt.
To find out how much you could save, Request A Quote or contact our expert team on 1300 728 726 today.
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