HSBC UK hosted two excellent sessions at the Birmingham Black Business Show in June focusing on two important topics for all businesses – Funding your future and Growing your business sustainably. Below we share some of the key takeaways from those sessions.
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Growing your business sustainably
1. Don’t be afraid to start early
Becoming more sustainable can seem daunting. Start by understanding your business’ impact on the environment and build a plan to mitigate that impact. Look at simple steps such as moving to energy efficient lighting before moving onto the more complex challenges – we call actions like this ‘Achievable Change’.
2. Being sustainable can also mean reducing costs
The steps you might take to become more sustainable can also help you save money in the short or long-term. That might be reducing the amount of packaging for your products or sourcing materials from the circular economy. Investing in alternative energy sources such as heat pumps, can help mitigate the impact of rising energy costs.
3. Think about your customers – big and small
Whether you’re selling direct to consumers or into the supply chain of a large corporate, your customers are likely focusing on sustainability. Large corporates want to know their suppliers are doing the right things. While consumers are often thinking about where products are coming from and how they impact the environment.
4. Communicate with your customers
Be honest and tell your customers about the journey you’re going on and the improvements you’re making to be more sustainable. If you have packaging, use it to help tell the story and be clear on the steps you’re taking.
5. Understand your emissions
Scope 1 emissions are direct from your business activities such as the energy you use, or your transportation. Scope 2 is related to the energy you use but covers the emissions from your provider to produce that energy. Scope 3 is wider and more complex and relates to emissions throughout your supply chain. As you start your sustainability journey focus on the emissions you can control in scope 1&2.
HSBC is changing too. You can find out more about our Climate Strategy at: Our climate strategy | HSBC Holdings plc
1. Nail your market research
Don’t assume that your great idea or skill will translate into a successful business. Use the market research tools at your disposal to really make sure there is an audience for your product and that it solves a need or pain point.
2. Pay attention to the numbers
It’s vital to get this right from the beginning. Understand your profit margins and include your own time as well as other inputs and marketing costs so you make sure you’re pricing for a profit.
3. Prepare before approaching a potential funder
Get your business plan in order and have a really clear sense of your purpose and the USP of your business. Do your due diligence beforehand by checking your credit score and using any available eligibility checkers. This shows a potential funder that you’re on top of the financials.
4. Build your networks and be prepared to delegate
There’s an African proverb – ‘if you want to go fast, go alone, if you want to go far go together’ – that works for business. Use advisors, speak to your peers and even your competitors to build your knowledge. And as you grow don’t be afraid to let go responsibility for some aspects your business.
5. Have passion and purpose
Running your own business does bring challenges. Having the passion and sense of purpose about what you’re doing will help you through the tough times. And that commitment will shine through when you’re speaking to potential funders.