Skip navigation
2015

SP_Sustainable_SMB_body.jpgJeff Basch, owner of Sierra Roofing and Solar in Dublin, Calif., was among the first roofing companies in his area to embrace the advent of solar panels in 2010. As an environmentalist himself, he saw not only the potential of solar to conserve energy, but also to help his business grow. Five years later, the solar portion of his business has indeed blossomed, as has the rest of his company. “Customers will call us because of our solar niche, but they’ll also have us do their new roof while we’re at it,” Basch says. “Offering a sustainable option with our traditional services has really propelled our business.”

As Basch has found, being a sustainable small business is not only good for the environment—it’s good for the bottom line.


Here are five benefits of building an eco-friendly small- or medium-sized business:

1. Lowers cost of operations—There are countless ways to root out energy and economic waste in a small business. Basch has swapped his salespeople’s F150 trucks for hybrid vehicles, which he estimates saves about 13 miles per gallon. Basics Fitness Center in South Portland, Maine, installed a solar hot water system, which essentially eliminates gas consumption typically needed to heat water six months out of the year.


Even something as simple as switching out your traditional incandescent bulbs can have an immediate impact on your energy bill. Compact fluorescent lamps (CFLs) use about one-fourth of the energy and lasts ten times longer; light emitting diodes (LEDs) use only 20 percent to 25 percent of the energy and last up to 25 times longer.


“It’s like free money when you drive out costs because that money you’re not spending goes directly to your bottom line,” says Martha Young, founder of Sustainability4SMEs.com.

SP_Sustainable_SMB_PQ.jpg2. Presents new market opportunities—Young says many small business owners find significant marketing opportunities when they start offering green services. She worked with a landscaping company in Omaha, Neb., that built a new client base by reducing their customers’ water use through xeric landscaping, which uses plants, such as lavender, iceplant and yucca that are well suited to drought-like conditions and drier soil types.

3. Meets customer needs—A 2013 study found that corporate social responsibility is now a reputational imperative, with more than 90 percent of shoppers worldwide likely to switch to brands that support a good cause, given similar price and quality. Additionally, more than 90 percent of the consumers surveyed are more likely to trust and be loyal to socially responsible businesses compared to companies that don't show these traits.

4. Ensures a steady supply chain—Relying on substances such as oil or other natural resources can put businesses at the mercy of fluctuating prices and potential disruption of their supply chain. Choosing a renewable source for raw materials, such as recycled plastics instead of polyester and fleece for clothing, or soybeans rather than plastic for containers, is a great option, Young says.

 

5. Promotes downstream business—Smaller businesses trying to sell their products to large companies are increasingly being asked to provide details on their eco-friendly practices. “If you’re trying to do business with companies like P&G or Walmart, they will require you to fill out a survey, and then will give preference to sustainable companies because their own supply chain management and Corporate Social Responsibility reporting requires it,” says Young.

 

Bank of America, N.A. engages with Touchpoint Media LLC to provide informational materials for your discussion or review purposes only. Touchpoint Media LLC is a registered trademark, used pursuant to license. The third parties within articles are used under license from Touchpoint Media LLC. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

SP_Pay_On_Time_body.jpgby Erin O’Donnell.

 

The longer an invoice goes past its due date, the less likely your business will be able to collect on it. And for a small business, the loss of any income is tough to absorb.


Some 64 percent of small businesses surveyed in 2012 by the Wall Street Journal reported having invoices more than 60 days delinquent. And the U.S. Small Business Administration estimates that more than 25 percent of receivables that go 90 days past due are never collected. As time drags on, the number only climbs higher.


So how do you ensure that your invoices are paid on time? Here are some top tips from entrepreneurs and small business advisors:


1. Set payment expectations before any work is done

From the beginning, Mike Sprouse has included dates of payment in the initial contract with clients of his marketing strategy firm, The Sprouse Group. So whether he’s working with a high-end fashion brand or a professional services firm, the dates and terms of payment are clear.


“I just felt like it would be helpful to lay things out from the start, for both us and the client,” Sprouse says.


The strategy has worked well during the first three years of his business, he says. Sprouse also offers to send a calendar reminder about 10 days before the due date. “Sometimes clients just plain forget, and not out of any malice,” he says.


SP_Pay_On_Time_PQ.jpg2. Send smaller, more frequent invoices

There’s no rule that says you can bill only once a month. If you’re working hard to maintain your business’s cash flow, try sending invoices more frequently, says business consultant Shell Black.


It may be easier for your client to pay a smaller amount every two weeks, says Black, who helps businesses set up and run Salesforce cloud computing software. Sometimes larger invoices must be authorized by an executive, he says, which can only delay payment further.


Consider which of your clients would be better served by a shorter cycle. Sprouse says about three quarters of his clients are invoiced monthly, and the rest are on biweekly terms.


Black says it’s also helpful to ask for a deposit, which generates cash flow and also sets an expectation that the balance will be coming due. “If you have a project that’s going to take a long time, I tend to agree with pulling some money up front and then billing on milestones within that project,” Black says.


3. Save time with technology

Small business owners have several choices of software and online services that can streamline invoicing and help them track due dates from anywhere, including PayPal, QuickBooks Online, and Bill.com. This can be especially helpful for a sole proprietor or small business owner with no office staff. Businesses can also accept payment online through PayPal, Amazon Payments, and Intuit, among others.


Tools like these, along with clear communication, will help you avoid the anguish of delinquency and keep your client relationships on good terms—for the long term.


Bank of America, N.A. engages with Touchpoint Media LLC to provide informational materials for your discussion or review purposes only. Touchpoint Media LLC is a registered trademark, used pursuant to license. The third parties within articles are used under license from Touchpoint Media LLC. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

 

Filter Article

By tag: