Being Environmentally Conscious When Selling Your Business
Today, consumers are increasingly motivated to do business with companies that are environmentally conscious. That means they not only comply with local and federal regulations, but they go beyond what is required in order to protect the environment.
That means that business buyers are also looking for businesses that are environmentally conscious, especially Millennial buyers. They call these companies “sustainable” or “green” but they all mean the same thing: your company is aware of the issues of climate change and other environmental harms that are potential consequences of doing business, and you are doing your best to mitigate them.
Does this mean you have to totally revamp your business approach? Certainly not. There are some simple things you can do when getting your business ready to sell that can not only make it more sustainable and appealing to buyers but can also impact your business valuation. What are they?
Compliance and Beyond
First of all, you must be in compliance with all local and federal regulations and have all the licenses and certifications you need, but also go beyond those things to show you are more environmentally conscious. For example, let’s say you are selling a tree and landscaping business. You use certain chemicals and fertilizers every day in the care of your customers’ property.
Those chemicals are regulated, so you need to be in compliance with your local regulations, which in California can be extensive. But you also have choices to use less toxic and more sustainable chemicals in the first place, ones that have less impact on the environment in both the short and long term.
This is a simple step, but it means that consumers will be more likely to use your service and it instantly becomes more appealing to a wider group of buyers.
Renewable Energy Options
One of the biggest concerns to consumers is where a company gets its energy from. Depending on your type of business, this can be a challenge, but there are options for you apart from converting your offices to using solar power and other extreme options. Here are a few ideas:
- Buy renewable energy credits: If you can’t switch to solar, wind, or another renewable energy source, you can buy credits to offset your use.
- Source sustainable products and services: Get the products and services you use from other sustainable companies and advertise that fact. Be sure you are truthful about when this is not possible.
- Recycle: This may seem like an obvious and simple solution, but for many companies this creates a logistical challenge. However, in today’s market it is better to take on that challenge and be seen as a responsible, sustainable company than to sidestep any challenges recycling might create.
- Use sustainable digital services: Because of where most data centers are located, they are often powered by solar or other renewable energy sources. Use those servers and data centers that meet sustainability standards. Use cloud computing whenever possible rather than running your own servers. It’s more efficient and cost effective, but also better for the environment.
- Donate to local, sustainable charities: Being proactive in your community makes you not only more attractive to consumers, but to those who may want to buy your business as well. If you already have a positive community image, it is easier to effectively market and sell your business.
Remember, both your customers and the person who will buy your business care about sustainability and the environment. Making it clear you care as well will only make selling your business easier.
Go Paperless, Even During the Selling Process
There are many reasons to go paperless with your office and during the process of selling your business. There will be a lot of paperwork, but much of it can be digitally signed or handled without ever printing a single piece of paper.
This is not only good for the environment, but it is also provides both parties with greater security. Virtual data rooms that are encrypted and password protected means that no one has access to data they shouldn’t, and that it is safe from prying eyes.
Going paperless also speeds up the process. Instead of mailing documents back and forth, they can be shared instantly in a digital environment. Conversations and versions are easier to track than even using the best email programs out there.
Being environmentally conscious when selling your business actually starts before the sales process. It means establishing your company values around sustainable practices early on. However, in the long run it will be worth the extra effort. Not only will you be more profitable, appealing to customers, and appealing to potential buyers, but you will be doing good at the same time.
Want to know more about selling your business or even getting started with a business valuation? Contact us here are Rogerson Business Services. We’re here to be your business broker in California and help you every step of the way.