Missouri Small Business and Technology Development Centers Blog

Companies that communicate a social conscience about the way they do business tend to be more profitable than those that do not. We like to patronize businesses that try to do well by doing right. But if you’re a business owner, how do you communicate that to the world?

First, you need to have a sustainability plan. How do you intend to reduce your imprint on the environment? Is it written down? How is it communicated to your employees? Even if it’s not presented in tremendous detail, you need to publish it, perhaps on your website and on placards in your place of business. Be sure you have specific goals, such as reducing water consumption by 25 percent in the first year. Mark your progress, and communicate that as well.

Use only recycled packaging, and make a big deal about it to your customers. Be sure it’s printed on the packaging that it is made of recycled materials as part of your commitment to sustainability. Again, add that to your promotional materials, including your website.

If you have done something to reduce energy consumption in company vehicles, include photos of those energy efficient vehicles on your website. Several companies in our area have clearly marked their hybrid or smaller vehicles with a message about their firm, and the fact that they are using those vehicles says something about their commitment to sustainability.

Communicate your commitment to recycling with bins outside your business and on signage inside. Again, include a measure and communicate it. Include some photos of your employees filling the recycling containers, and offer a plastic bottle and can recycling container to your customers as they enter your place of business.

Choose suppliers and service providers that operate in an environmentally conscious manner. Ask them what they are doing to reduce their imprint. When you work with another vendor who is concerned about sustainability, communicate that in your business as well. Larger corporations are moving aggressively in this direction, requiring that some suppliers incorporate sustainable practices. It’s becoming the norm, so don’t be afraid to ask about it.

If you are in food service or food supply, purchase produce, meat and other goods from local producers to the extent you can, and be sure your customers know about your efforts with signage and on your menus. Your customers will appreciate your keeping your consumption in the local market, which builds pride in the region and reduces costs as well.

Smaller steps are doable, affordable and easily communicated to your various publics. But sustainability is not just a good PR move; it makes business sense. Make a sincere commitment, and your customers, employees and communities will thank you.

Lately, one of the TV stations in our area has been running a series of announcements on what local small businesses are doing to “go green.” It’s been gratifying to watch because you can get a sense of how all of these relatively modest efforts can add up over the region, state and nation to make a big difference.

For instance, one of the local papers is using recycled paper and soy-based ink products as opposed to petroleum-based ink products. A pet food store is simply practicing recycling of jars, bottles, packaging and boxes. A local restaurant has switched to all compact fluorescent light bulbs.

One of our clients in the Kansas City region, Ripple Glass has built a new glass recycling facility for processing bottles into fiberglass insulation. The owners are the same folks who founded Boulevard Brewing, and when they stopped to consider how many bottles they alone were sending the landfill, they decided to be part of the solution instead of part of the problem.

So, even if you are a very small business, you can still make a difference. And communicating the difference you are making can translate into sales, income and profits if you let others know you are being environmentally aware. It’s equally important to communicate your commitment to sustainability to all members of your team as well as to your customers and suppliers. It needs to become part of your business culture so that employees can use it as a source of pride that they work for a company that is doing its share to preserve the environment. And it needs to become a clear part of how you do business, so your suppliers, partners and other providers know you expect it in your business dealings with them.

Studies show that consumers favor companies with a social conscience. So, it’s very important to let your customers know you are doing your part. All other features being equal, it may be the deciding factor in someone’s purchasing decision.

More to come on ways to spread the sustainability message…in our next installment.

When I took a sewing class in junior high school, I struggled to make an apron out of gingham. In the end, my unique design and poor execution warranted a generous “C” from my teacher. That’s when I figured that fashion design was not my career path.

It’s a good thing. On a recently released list of the 10 fastest disappearing jobs, fashion designer is near the top, along with insurance underwriter, travel agent and newspaper reporter. In each of these cases, technology is playing a role in what are predicted to be rather dramatic losses of positions. In the case of fashion design, automated design programs are speeding garments to the machines and eliminating the need for “by-hand” design. Faster and more efficient underwriting programs enable those professionals to get a great deal more done more quickly than ever before, thus eliminating the need for many positions.

I suppose we can blame the gnome on the decline in travel agent jobs. And even though many former newspaper reporters have repurposed their skills for online publication, research and time spent gathering a store are cut down significantly through access to online resources, email and electronic sharing of documents.

One that’s really upsetting to me is a decline in the number of jobs for broadcast announcers, but I hear it every day when more and more of the content on the stations I enjoy becomes syndicated.

So, where will the jobs be? Nursing is number 1, obviously, because all of us baby boomers and everyone who is now being covered by healthcare insurance will surely require more assistance. Nurses can have their pick of specialization and their pick of positions — wherever they live. We’ll need more accountants, more teachers and more software engineers.

And even though these positions won’t pay as well as those listed above, there will be no lack of positions for home health aides, retail sales and food preparation.

At one time, when the business world was not as competitive, just having the lowest price was enough to gain a customer. Now, large discount houses and big box stores have pretty much removed that determinant from the shopper’s decision-making. It’s hard to compete purely on price. Assuming comparable quality of the product, customer service is the one remaining attribute that can set you apart from your competitors.

We’re becoming less and less patient. In this world of instant gratification, we want our problems and complaints resolved instantly — not in a few days or a week. We want our issues resolved with one call. This kind of demand puts an increasing amount of stress on owners and employees, and in the end, there are some customers whom you may never satisfy. When you get into a situation where your continuing — and often futile — efforts are costing more than the customer is worth, it’s okay to “fire” that customer.

Remember they taught us in business school that a dissatisfied customer will tell seven people. Bad news: with social media, a dissatisfied customer can tell millions. But, consider the reverse. A happy customer can tell millions about their satisfaction as well. We tend to believe what our friends and colleagues tell us about a business much more readily than we do paid advertising.

In addition, many people will let a business know of their dissatisfaction for the first time using a social media site. That’s why it’s essential that someone in your organization is appointed to monitor all of your social media interactions to ensure content stays fresh, but also to ensure that nothing gets past you.

We need to “get personal.” Think of how Amazon.com or Netflix offer you recommendations of books or movies you might enjoy based on your past buying/renting habits. To the extent possible, if you or your employees can provide a version of that kind of personalization, it will enable you to compete in a powerful way. For instance, at a local gourmet dog treat bakery and specialty store, the staff knows that my dog Bud likes a particular treat that is soft and easy on his aging teeth. The other day, when I entered the shop, they reminded me they had just baked a fresh batch of “Bud’s cookies” that morning. How could I refuse after they had gone to all of that trouble?

And to the degree you can create an experience in your business, the greater will be your customer retention. Where I live, we have several local companies that offer products that are really comparable to those offered by many others, but when I enter the business, the atmosphere, friendliness (but not pushiness) of the staff and even the décor create an experience in which I can become lost and spend more freely.

With the recent historic weather event, the coming of Groundhog Day and people running to the Farmer’s Almanac to see what lies ahead for the rest of the season, predictions and prognostications are flying. Enough about the weather! What’s ahead for small business?

I’ve been reading a lot lately about how many small businesses are tapping into the expertise of retirees, many of whom are exiting the full-time workforce earlier and are full of experience and real-world knowledge that entrepreneurs can — and should — tap. Many of these folks don’t want a full-time gig, so you can gain some valuable part-time insight for a reasonable investment.

The jury is still out among many small business watchers about the true power and return on investment in social media. This is a case of “depends on who you ask.” Anecdotal evidence indicates those who truly devote themselves to using social media aggressively do realize benefit. But if you think it’s a no-cost way to promote your service or product, you’re wrong. To use it properly takes a great deal of staff time. If you make a commitment to it, make a commitment. Don’t start a Facebook page and let it remain dormant. Someone in your organization needs to be designated to maintain it and post on it frequently.

Many prognosticators believe small business will continue to add jobs, although at a slightly reduced rate, an indication of their continuing optimism. Owners will fund those new jobs through more promotions, tapping into new markets and creating innovation with current products. Many will finally bite the bullet and create an aggressive online presence to help find those new markets. The Internet will continue to level the playing field.

The growth in self-employment will continue. For those on the job market — either by necessity or by choice — this will be the job creation of the future. These self-employed individuals are going to help boost the business climate by offering services at a lower price than traditionally available. Lay-offs will no longer be seen completely as the end — they could, indeed, mean a new beginning.