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By miguel-ingles
- In Uncategorized
A greater awareness of protecting the environment is being formed in the world. Because of this, in recent years companies that try to meet certain sustainability standards have emerged. In addition, it is proving itself to be a growing economic sector, especially among young consumers. In this article, I explain how to set up a sustainable business in the UK.
What are Sustainable Businesses?
Sustainable businesses are those companies that try to minimise their environmental, economic and social impact. At the same time, they offer some benefits to their community and to the environment. Its operations mainly focus on solving problems such as the lack of human rights, climate change, pollution and labour injustices, among other factors.
It is worth mentioning that a sustainable corporation is not the same as an ecological one. The first, seeks to maintain a prosperous economy, without exhausting all available natural resources and tries to eradicate inequalities between people. The second, however, focuses on limiting as much as possible the harmful effects of the production that a company generates.
Sectors to Set Up a Sustainable Business in the UK
There are several ways to apply sustainability strategies to a company. Some examples would be optimizing the supply chain to reduce emissions, using sustainable materials or supporting social questions.
One of the main sectors that are opting for sustainability tactics are fashion and cosmetics. They look to reduce pollution in their production chain while offering better working conditions for their employees. On the other hand, there is also an increase in the number of platforms for buying and selling second-hand items. In this way, it is possible to give a second life to goods that their original owners no longer need.
Steps to Set Up a Sustainable Business in the UK
1. Conduct a Market Research
Conducting a market study is a step that the directors of every company must take. It will allow them to find out certain services that no other company offers, what is the competition or the prices that customers would be willing to pay, among other things.
Additionally, within the framework of sustainable business, it will be possible to investigate environmental problems that a hypothetical new company could help to solve.
Market research in this area can be conducted through social networks, online forums or by studying the results of sustainability reports. On this MSCI Sustainability Institute website, you can check several environmental analyses.
2. Choosing the Right Legal Structure
The most common legal structure choice among green corporations is the social enterprise. They are businesses that have as a social object any of the following purposes.
- Achieving a significant social impact rather than for its shareholders.
- Reinvesting their earnings into social goals.
- Managing the enterprise in a responsible, innovative and transparent way.
However, they can also choose to form as a partnership sole trader or public or private limited company.
3. Obtaining Funding
The process of obtaining extra funds for a sustainable business will be similar to that of “conventional” companies. On the one hand, you may resort to angel investors, venture capital funds or bank loans. In this article, I explain in detail what are these options.
On the other hand, directors can request financial grants from public administrations. In the UK, you can check the subsidies available for each type of corporation through the British Government’s Finance Finder.
4. Forming a Green Supply Chain
A sustainable business must ensure that all production and sales processes meet the environmental objectives that they have set for themselves. For example, you will need to guarantee that the items you sell are produced in an environmentally friendly manner or that the packaging is ecological.
5. Green Marketing
Young people are the ones who tend to be more environmentally conscious. Therefore, to attract them to a business, one option would be to resort to referral marketing strategies through social media.
There is also the alternative of obtaining accreditations from environmental standards regulatory bodies that certify that the corporation is ecological and sustainable. Thus, it is possible to improve the image of the business at the same time that boost sales. In the UK, the most recognized regulatory body among consumers is Fairtrade.
In ukstartcompany, you will find information about how to establish, register and operate companies with different legal structures and business activities in the UK.