Andrew Rogerson's Blog, page 46

Ways to Make Your Business More Eco-Friendly

Consumers want the businesses they support to be ethical and socially aware. An eco-friendly business cares about more than profits; it cares about humanity, society and the earth. Whether your business has just opened, or you have a long history, here are some tips for any business ready for an eco-friendly makeover.

Heat & Air Conditioning

Most businesses have air conditioners, and all have heat. Keep your central heat management system (HVAC) in tip-top shape to save on energy bills. Like any machine, HVACs will decline in performance if they are not regularly maintained. Get an annual maintenance contract. This ensures your HVAC is serviced with a pre-season tune up just before a hot or cold season. Change the filter of your HVAC every month or two in peak hot and cool seasons to ensure you don’t waste electricity.

Air conditioning can be comfortable, but it’s also expensive and consumes a lot of electricity. Keep cool with fans in the hottest season. When the air outside drops below that of inside, a box fan or a central fan in the attic of your building can flush out the hot air and welcome in the cooler air.

No More Paper Invoices

Paper consumption is one of the biggest impacts your company can have on the earth. Eliminate paper invoices by using an instant invoice apps or online services, like Flint. If your business is service based, you can send invoices of completed jobs, rates, and more, right from your phone, tablet or computer. You can also provide an option for instant payments and easy, paperless reminders in the form of email, online messages or online bulletin boards.

Waste Management

Make it a company policy to recycle and reuse as many resources as possible. Learn what services your government can provide your business; check with your municipal and state waste management website. For industrial waste management, check with the Environmental Protection Agency so you don’t break any laws and dispose of waste responsibly. If you’re local government doesn’t provide recycle and compost services, hire a private entity pick-up service your recyclable and compostable materials each week.

Your Employees

Education is key when your business is eco-friendly. Define your eco-friendly plan and make sure your employees implement these plans. If your business is not already eco-friendly, call a mandatory meeting and explain what steps you will take in order accomplish your green goals. Going green is a cultural shift within the set culture of your business, while improvement in eco-friendly practices are comprehensive to some, if your employees don’t share your vision, nothing will change.

Green Brands & What’s Next

Your business’s green conversion will not only increase the desirability of your brand, but it will also save you money. When you use less energy this is more cost effective as well as better for the environment. While these steps you’ve taken are ethical business practices and might look good, review your green strategies make sure your business is improved in more than just image alone. Assess and reassess your eco-friendly endeavors year in and year out. This will ensure your green practices continue to improve more services become available for you and your business.

The article Ways to Make Your Business More Eco-Friendly first appeared on Andrew Rogerson and Rogerson Business Services by Andrew Rogerson

Dell Richards and Dell Richards Publicity

Dell Richards was my guest on Money 2.0 and Dell came on board to talk about PR or Public Relations and in particular its use as part of the marketing mix of a business.

Dell’s background comes from spending more than 20 years as a journalist and then 10 years handling the media including owning and operating her own company she calls, naturally, Dell Richards Publicity.

As Dell explains, Public Relations is not just about having an interesting story or angle but more importantly, its presenting that story or angle to the television, radio, newspapers, magazines and social media so not only is it credible, but it is presented in such a way that it saves the editors, reporters or producers who work under enormous time crunches the need to repackage or verify the material they receive.

It also includes expertly presenting the story or angle in the right format for the different types of media. For example, if Dell puts together an item for the print media such as the local daily newspaper, she wants to know what place in the newspaper it is going to appear so it’s presented correctly. An item that goes on the front page, the business section or the sports section are not written and offered the same.

As well as varying the presentation for the local daily newspaper, it equally applies to the different types of media. For example, an item for a radio show, TV station or magazine are each presented much differently and so this is part of the many skills and dimensions that Dell brings to help her clients.

As Dell says, every business owner wants their business to be in the media as it provides exposure. Getting exposure is good, but getting the right exposure the right way is best.

If you would like to hear my conversation with Dell Richards, please click this link. Dell is the second guest on this show and my conversation with Dell starts 28 minutes into the show.

The article Dell Richards and Dell Richards Publicity first appeared on Andrew Rogerson and Rogerson Business Services by Andrew Rogerson

Jake Goldman from Oneup.com

Jake Goldman is my guest on Money 2.0 and is an expert in distributive website development. What, you have never heard of distributive website development? Don’t worry, neither had I. My reason for inviting Jake on the show is that he knows a lot about websites. Websites are now becoming the first thing any new business owner does as it’s a way to introduce themselves to the world and most important of all, tell their story as opposed to having some-one else tell it for them.

Jake owns and operates is own company called 10up.com. As you can guess, 10up.com is a distributive website development company that specializes in unique and powerful websites for high-end client needs. Jake’s background is in web design, where he started in the mid-90s working on freelance projects to now running his own company.

Jake explains what the distributive model is and why he employs it in his business. He says the key advantage with the model is that he can pool the best talent for his business without being restricted geographically, which he notes is an outdated business model for his industry. Jake also talks about his company’s hiring process and the tools that come in handy in working with remote workers.

Jake’s company specializes in WordPress. He says WordPress is a unique platform in that it focuses on the publisher’s experience. He says they chose the platform for their clients as one does not have to be a developer to maintain a company website; the tools inside the platform are not too technical.

Jake describes the versatility of WordPress, saying a business can go to WordPress.com and create a free website, or they can hire consultants like 10up and have their company site set up for them.

If you have a website and want to take it to the next level, you will find my conversation with Jake very interesting. If you don’t have a website, then you will definitely find my conversation with Jake interesting as you’ll better understand why it is so important.

If you would like to hear my conversation with Jake Goldman, please click here.

The article Jake Goldman from Oneup.com first appeared on Andrew Rogerson and Rogerson Business Services by Andrew Rogerson

Software To Help Streamline Workforce Processes

For many operations large or small, the right software can make the difference between a productive workplace and a sluggish one. While implementing new applications might seem like it could overwhelm staff, employees quickly adapt to the use of software applications. Cornerstone On Demand reports that employees who use applications in the workplace use an average of four a week. Here’s a look at a few applications that can help to streamline various aspects of your business.

ShopVue

ShopVue combines factory labor management software and machine monitoring applications with attendance monitoring systems to create one powerful manufacturing productivity tracker. With a simple touchscreen user interface, ShopVue gives your front-line managers a real-time look at your manufacturing facility’s productivity. ShopVue’s labor reporting utilities offers an electronic dispatch system that gives operators a digital job list and allows them to select orders with a barcode scanner. This feature even allows you customers to track job start and finish times and reduces the overall time your operators spend reporting job data to the press of a touchscreen.

Additionally, ShopVue offers more than 70 manufacturing reports that include core data such as employee labor efficiency, order efficiency, and work center productivity. ShopVue’s developer, Casco, offers custom reports as well as a manufacturing manager reporting package. Easy to use and fast to implement, ShopVue is a shop floor data system that will greatly boost productivity and efficiency for your manufacturing floor.

Zipwire

Streamlining your operation doesn’t just happen on the shop floor – keeping up with customer expectations regarding customer service speed and quality is just important to your success. Aspect Zipwire is a cloud contact center that tracks customer history, preferences, issues and resolutions all in one scalable piece of software.

Zipwire’s cloud deployment means that there’s no downtime for upgrades or maintenance and offers instant upscaling if your needs change. Zipwire offers workforce management solutions, as well as supervisor tools that allow for call recording, screen-sharing, interaction feedback and screen capture. Finally, Zipwire offers simple to implement post-interaction feedback surveys that let customers provide you with the data you need to improve interactions and optimize your customer service processes. When it comes to contact center software, don’t settle – you need to make sure customers feel well taken care of or you won’t have anyone left to sell your products and services too.

Kronos Workplace Workforce

Workplace and Workforce are actually two separate applications that offer many of the same features – Workplace is an HR and payroll solutions utility for small to midsize operations, whereas Workforce is designed for larger enterprises. Both allow you to track time and attendance as well as administer payroll, but Workforce offers much deeper analytic options as well as advanced absence tracking software. Both can be implemented in the cloud, but Workforce offers on-premise installation options as well.

For those businesses that employ more than 2,500 employees, Workforce is a better option and can be optimized specifically for your industry. For smaller operations, Workplace is a sleek and easy to implement option that will streamline your HR and payroll departments. Both options offer powerful automation options that will let your HR departments spend more time focused on your organization’s strategic objectives and less time filing paperwork, as well as increase accuracy and minimize risk.

The article Software To Help Streamline Workforce Processes first appeared on Andrew Rogerson and Rogerson Business Services by Andrew Rogerson

What is a Business Succession Plan

Who uses a Business Succession Plan? What is a Business Succession Plan? Is it an option for your business?

A Business Succession Plan typically appeals to one type of business owner. This is the business owner that wants to transition the ownership and management of the business to generally their next generation of family. If it’s not the next generation of family it would be to the current executive management of the business.

If a business owner is considering a Business Succession Plan their situation would fit in with the following.

Most privately held businesses are owned by one shareholder.More than 50 percent of business owners in the US are 55 years old or older.A large percent or the owners are 65 years of age or more.Less than 50 per cent have someone designated and trained to take over the ownership and operation of the business.A majority of privately held businesses have no detailed and operational Business Succession Plan.The purpose of a Business Succession Plan.

A Business Succession Plan puts a clear and deliberate structure in place to transition the business from the current owner to the next. It is not like life insurance where if something happens to the owner then the Business Succession Plan is triggered and sets in motion a particular course of action. A Business Succession Plan is both strategic and tactical and in addition, totally comprehensive. It’s totally comprehensive as it does a 360 degree look at the owner, the family, the business, the current economy and industry including financial, tax, legal, management, competitive and more environments so all risks are identified and managed as much as possible with a written plan.

A Business Succession Plan is a serious document designed to produce a road map to the success.

The good news is that a properly developed and executed Business Succession Plan is not only good business, its great business as it tries to achieve with as much certainty as possible, the value of the business and those whose lives it touches if nothing proactive is done if the owner passes away without a Business Succession Plan in place.

What a Business Succession Plan includes

A Business Succession Plan, at a minimum, includes the following.

A complete review of the financial status of the business as well as the current owners personal finances. This includes the last 3 years tax returns of the business and the business owner. The goal is to do a SWAT, that is, identify Strengths, Weaknesses, Opportunities and Threats.A complete review of current legal contracts to understand what the liabilities of the business and current owner so steps can be discussed and planned for any changes to the legal structure of the business if it is, for example, a corporation or LLC etc.A complete employee review of the business and in particular the executive management team, where it is now and where it optimally wants to be in future years.A valuation of the business. The valuation is for many reasons; tax planning, estate planning, legal planning including any lawsuits be they filed for or against the business and financial planning for items such as third party loans and more.A complete review of the business to understand where it’s current position and what changes may be anticipated in relation to the industry, customers, employees, its use of its assets including equipment, inventory, real estate, intellectual property, product liabilities, warranties and guarantees and more.

As management guru Peter Drucker said “The only thing we know about the future is that it will be different.”

Is a Business Succession Plan right for your business?

A well developed and executed Business Succession Plan will do its best to protect the current owner of the business both personally and professionally and see their wishes for the success of their business transition to a new owner and the next part of its journey and history.

A Business Succession Plan is only as good as the work done in putting it together. Hopefully the future will then be kind to all those the business continues to touch and remember the current owner who had the vision for the business.

If you would like more information about a business succession plan, selling a business, buying a business, buying a franchise or a related service such as valuing a business, please visit my webpage Services and choose from the drop down menu the information you would like.

For more immediate help, you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

The article What is a Business Succession Plan first appeared on Andrew Rogerson and Rogerson Business Services by Andrew Rogerson

Hire a guide to buy a franchise

The Sac Bee had an article in the Business section of their newspaper on June 07, 2015 and it was written by Cathie Anderson. Cathie’s article headline was “Hire guides before jumping into franchising.” As Cathie explains in the article, more and more people are looking at getting into business; especially those forced into early retirement due to corporate downsizing.

As the article explains, what’s attractive for those looking to buy a franchise is that it offers five really powerful outcomes.

A proven system so the buyer of the franchise doesn’t have to, as they say, re-invent the wheel.Allows the franchise buyer the ability to bring their skill set including industry, business and management experience to the franchise and therefore maximize their ability to earn as much as possible.The ability to get additional training and support for the skills the franchise buyer may lack or need additional help.An understanding of the total investment so the franchise buyer knows before they get into business what their costs will be.The ability to “hit the ground running” and focus.

What’s attractive to the franchisors and the reason they welcome talking to the potential franchise buyers that come from corporate downsizing includes.

Previous business and management experience.Understand how to work in a structured business model.Have money available to invest in a business.Have an established credit history and credit report that reflects on how they handle responsibilities.

Read More:

Here is more information about buying a franchise.

The primary purpose of the Sac Bee article was to recommend to those looking to buy a franchise to get the right help and not go in a direction that will make them feel uncomfortable. In order to do this it came up with the following recommendations.

Identify trusted consultants that will explain the franchise buying process, your roles and responsibilities and equally, the roles and responsibilities of the franchisor.Do not regard buying a franchise as a quick process. Follow timelines and deadlines but it is about making the right decision.Attend franchise shows and conferences to better understand the industry.Read industry journals of the industry that appeals to you. Industry journals can often cost little to no money and can be available to read online.Understand not only the importance of the Franchise Disclosure Document but what is in it.One of the best parts about buying a franchise is that you are able to call any current franchisee and request their feedback. You fill find some franchisees doing exceptionally well, some doing OK and some not doing well. Ask each of them where they find themselves and more importantly, why.Understand who you are and what you bring. If you have worked in the auto-repair industry all your life and dreamed of owning a restaurant, this is probably not the right time to pursue that dream.

Read More: The many steps to buy a franchise.

Just as buying a business or indeed owning a business is not for everyone, neither is buying the rights to a franchise. As the Sac Bee article suggests, look for a franchise concept you are excited about and can tell your friends and family it is where you work. Also, make sure it provides the support you will need to be successful and you understand the role you will play.

A final good piece of advice is to make sure you have enough money put aside for the first 12 to 18 months as it takes time to establish a new franchise; it is rare it is an overnight success. As they say, if it was that easy, everyone would be doing it.

If you would like more information about buying a franchise please visit my webpage Buy a franchise or buy a copy of my book – Successfully buy your franchise.

For more immediate help with buying a franchise, send an email to Andrew Rogerson or give me a call on 916 570-2674.

The article Hire a guide to buy a franchise first appeared on Andrew Rogerson and Rogerson Business Services by Andrew Rogerson

Buy a business from a position of strength

The steps to buy a business are many and difficult. They are too for the seller.

A deal only gets done if there is a motivated buyer and a motivated seller.

If you are looking to buy a business it is important to focus on what you control and what you do not. The buyer has no control over the seller and their behavior though it is critical that both are able to work together.

How to buy a business from a position of strength.1. Know what’s important to you.

What do you do best? Grow a business quickly, make a good business perform better over time (the Warren Buffet approach), take a poorly performing business and quickly make it better.

Knowing the answer to the question of what’s important to you helps avoid wasting time, energy and probably a limited amount of money you want to spend.

2. Time kills deals.

When you look to buy a car, you set your budget, the make and model of the car you want and how long you will look before making a final decision. You know that by not taking this approach you will burn out and become frustrated.

If you don’t take this approach when buying a car and it doesn’t make sense to you, your chances of buying a business are very small as the process is too demanding. Similarly, if you have been looking to buy a business for more than 12 months and it is something you are still doing, then you have fallen in love with the idea of owning a business and not actually buying one. Take a 6 month break and try again as if you do find a good opportunity, you will be too worried about making that final decision.

Read More: Here is more information about the steps to buy a business.

Why buy a business from a position of strength?

If you have been looking to buy a business you will know there is a shortage of businesses that meet your criteria. Most business buyer’s criteria includes:

Proximity. Buyers want the business close to where they live.Price range. Buyers have a price range they are willing to pay for a business that meets their criteria.Industry. Buyers have skills, industry experience and management experience. To manage their risk they want to stay in their comfort zone which makes perfect sense as it increases their chances of success.Downpayment. A good buyer will have a necessary downpayment to show they are serious about buying a business. A downpayment is necessary to encourage the seller to carry any seller finance or necessary if a third party lender such as an SBA lender is willing to seriously consider a loan application.Good credit report and credit score. If your credit report and credit score are not in good shape, then buying a good business with the expectation of getting an SBA loan simply will not happen. If you can get a business seller willing to carry some finance, then I would be concerned about the quality of the business you are buying.

If you would like more information about buying a business please visit my webpage Buy a business or buy a copy of my book Successfully buy your business.

For more immediate help with buying a business you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

The article Buy a business from a position of strength first appeared on Andrew Rogerson and Rogerson Business Services by Andrew Rogerson

Sell a business quickly

How quickly will my business sell is a question every seller wants to know. Saying the same thing but another way is “How quickly will you find a buyer.” The issue however quickly becomes; I am a motivated seller and would like to sell my business as quickly as possible.

If you are a motivated to sell your business the bad news is that you are only 50% of the solution. The other 50% is that you need a motivated buyer that is willing to work through a process that makes them exceptionally nervous. Depending on the buyer, if they learn the seller is motivated it can make the buyer more or less motivated. It can make them more motivated to buy the business if they are confident in the operation and performance of the business and they have decided owning and operating a business is right for them. It can make them less motivated to buy the business if they feel the seller is motivated to get out of the business. The reasons can vary but normally include the seller is trying to hide something or the business is not performing at its optimum. Of course there is the usual buyer concern; they just don’t feel right about making that final decision to buy the business and can easily do nothing.

If you own a business and are ready to sell, here are some items that will increase your chances of selling your business if you can find a motivated buyer. If you can’t find a motivated buyer then your chances of selling the business are exceptionally small.

1. Prepare

There is a document I share with business sellers when they first ask about selling their business and it’s called “The many steps to sell a business.” Click here if you would like to see this one page document. http://www.rogersonbusinessservices.c...

You will notice there are a total of 24 steps to sell a business. You will also notice there are 6 steps before the business goes on the market. The better the preparation the better the chances of selling the business to a motivated buyer.

2. Communication

This is one of the hardest tasks especially if the seller and buyer are trying to handle the transaction on their own. Life happens when buying and selling a business. If a third party such as a business broker is involved, they can follow up with both parties, explain, chase, send and simply get things done. Once again, there are many steps to sell a business and the sale of the business will not happen until all steps are complete one way or the other.

3. Complexity of the deal

This heading says it all. The larger the transaction the more items to discuss and at the risk of repeating myself, the sale of the business will not happen until all steps are complete one way or the other.

4. Luck

This may come as a surprise but there is no question there is a certain amount of luck that comes into the sale of a business. Last year I closed a transaction that took the buyer and seller 11 months to navigate. The sellers were 8 shareholders all from the same family. One week before the close of the sale, one shareholder who owned just on 1% of the shares, refused to sign the final purchase agreement. As it was a Stock sale, all shareholders had to sign. The one shareholder who refused to sign had some personal issues that took some artful work by the seller’s attorney to convince him to sign his shares to his mother and allow the sale to close. In this case, luck was on the side of the 7 shareholders and the buyer.

5. Industry and economic cycle

It is challenging to sell a business when the economic cycle and industry the business is in are not moving in a positive direction. Buyers are risk averse to timing when the economy will hit bottom. Their preference is to wait rather than take too much risk.

6. Personalities in the deal

There is no question that the personalities in the deal have an influence on its final outcome. The personalities are not just those of the buyer and seller but include other key people. For example, I recently had a deal unable to close because the seller’s attorney and CPA were more intent on increasing their billable hours as opposed to helping the seller close the deal; which is the reason she had asked for their help in the first place.

7. Professionalism

You may not be a professional selling your business but one of the ways a deal goes sour is due to a lack of response or indeed a slow response. All parties in a transaction want their time to be recognized as a shortage of time applies to everyone. This applies more so to any professional help you hire, that is, getting a quick response is what it is all about.

8. Coming together

The sale of a business happens over an extended period and moves through different phases. The first phase is the buyer and seller getting to feel comfortable with each other. The next phase is negotiating the deal which can often be stressful. The next phase is the buyer verifying the representations of the seller, getting third-party finance approved, negotiating with the landlord and more, all of which can also be stressful. Once all negotiations are complete and the transaction moves towards closing escrow, it’s now a critical time for the buyer and seller to come together. Unlike the sale of a house, it is possible the buyer and seller may never see each other again. However, with the sale of a business, the seller has to spend time training and transitioning the business to the seller. This includes introducing the buyer to the employees, customers, suppliers and more. This is a critical time for the transition of the business and its ultimate ongoing success.

There are many steps to sell a business. If the seller wants to increase the chances of the sale happening quickly, following the above suggestions will put the odds in the sellers favor. At the end of the day, though, the speed of closing the sale will equally depend on how quickly the buyer moves and addresses the items important to them.

Are you thinking about selling your business and move to your next challenge? Would you like to know the value of your business? If you would like more information please visit my website Business valuation.

For more immediate help you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.

The article Sell a business quickly first appeared on Andrew Rogerson and Rogerson Business Services by Andrew Rogerson

Business valuation scams are back

Business valuation scams are back…or did they ever go away? Recently a business owner in Sacramento called to ask for some help. There were two owners of the business and they had been talking for a while about selling the business to retire.

As luck would happen, one was on vacation and the other owner received a call from a company in Texas offering to value their business. They then offered to help the owners sell the business and find a buyer if they liked the business valuation. The initial fee to value the business they explained was $8,600 and was payable upfront. A valuation contract was sent including a list of the necessary documents the business owners were to send including tax returns for the last 3 years, Profit and Loss statements and Balance Sheets plus a check for the $8,600.

After the owners signed the contract and paid the $8,600 valuation fee they began to doubt they had taken the right course of action. Hence the reason for their phone call to me; that is, they were looking for a second opinion.

Here’s what we found based on further research.

The first concern was the fee they paid of $8,600 to have a business valuation on a company that had gross sales of just under $500,000. The cost to have a valuation of a small business like this should be between $500 and $1,000.

The second concern is that a fee to value a business to sell does not require the same detailed analysis as a business valuation which goes to the IRS to defend a tax position or to a Court of Law for a divorce. When a business is sold, the buyer and seller will negotiate and arrive at the fair market value of the business.

The third concern was to check the website of the company. After I looked at the website it raised many issues. When I checked the “About” tab to read the principals of the business there were no names. All it had was a bland summary of what they do which is to act as an intermediary in the sale of a business. They did not belong to any industry associations such as the International Business Brokers Association, M&A Source or the Texas Association of Business Brokers.

Read More: To see a sample business valuation.

The fourth concern was that the company is based in Texas. The owners of the business if they are selling a privately held company are required to have a real estate license. In California, if you deal with a company that sells privately held businesses, the company and its principals are required to have a license with the California Bureau of Real Estate. To check the broker is licensed and even the history of their performance as a broker, you can go to the Bureau of Real Estate (http://dre.ca.gov) and check their license. To make this easy for you, here is the link – http://search.dre.ca.gov/integrationaspcode

The conclusion after our conversation was that the business owners were going to speak to a local attorney and get their advice.

A few days later the business owners called back. The advice from their attorney was to contact the Small Claims Tribunal to see if they could get a refund. The problem with this approach is that the Small Claims Tribunal is based in California and the valuation company is based in Texas. Even if the business owners were successful with the Small Claims Tribunal there was no guarantee they would get back their money. Small Claims is also limited to a maximum of $7,500.

The other advice from the attorney was for the business owners to go to the District Attorney and file a complaint. This can be done but takes time and probably not a significant enough issue for a District Attorney to contact his counterpart in Texas to see if they could address this issue.

If you are thinking of getting a business valuation and/or selling your business here are some suggestions to help you.

Get a referral from somebody you trust. There are many sources. Your attorney, your CPA or accountant or your Personal Financial Planner to name a few.Use the services of someone located in the State where you do business. If you use the services of an out of State provider it makes it difficult if you have legal items to address.Be comfortable that the amount you are paying relates to the reason for the business valuation. If the business valuation is for an Estate plan, for a legal dispute and may go to court, for an Employee Stock Ownership Plan then a certified appraisal will probably be required with a higher fee. If the business valuation is to guide the price a business will sell, then it doesn’t need to be certified and therefore will cost less.

One of the business owner’s expectation was that the money for the business valuation would have to go into a Trust account. Unfortunately this is not correct. Money received for a third party such as the buyer of a business needs to go into a trust account but not for a business valuation.

If you would like more information about selling a business, selling a medical practice or valuing a business, please visit my website Rogerson Business Services.

The article Business valuation scams are back first appeared on Andrew Rogerson and Rogerson Business Services by Andrew Rogerson

3 Good Reasons to Use Sustainable Business Practices

Sustainable business practices are earning a lot of buzz in the business world, and rightly so. Aside from the obvious environmental advantages (and those are substantial), there are three good reasons entrepreneurs are launching businesses that are good to the environment. Let’s take a look:

1. Sustainability Is Becoming the Norm

What used to be reserved for hippies or fanatics is now standard operating procedure for many cutting-edge corporations, and large and small businesses alike are being held responsible by conscientious consumers for where and how their products are made. According to a 2014 Nielsen study, 55 percent of global consumers say they would pay more for goods and services from companies committed to social responsibility.

And entrepreneurs across the country are on board. Seventy-two percent of small business owners said incentives for clean energy are a priority, according to the American Sustainable Business Council. The same report found that more than 70 percent of small business owners support increasing energy efficiency by 50 percent over the next 10 years, and 13 percent of CEOs are placing sustainability in their top three priorities, up from just 3 percent four years ago.

A recent study from the Environmental Protection Agency and reported by Apple Rubber found that well over half of 3,000 company officials surveyed believe that sustainability is critically important to being competitive in today’s marketplace. The numbers are clear and rising. Get sustainable or get left behind.

2. Don’t Waste Time and Money Down the Road

Let’s face it; many businesses don’t focus on sustainability out of the kindness of their hearts, they do it to use fewer resources and spend less money. Sustainability makes very good financial sense. It’s still one of the top three reasons entrepreneurs address sustainability within their corporate culture, according to this McKinsey & Company report.

Spend time now, in the beginning stages of your business, looking at the ways you can cut your environmental impact with things like packaging, production facilities and product design. You’ll save the headache and cost of switching to more sustainable practices down in the future, leaving you to attack the smaller sustainability fixes as they arise.

3. The New Social Science of Consumer Spending

New research shows that environmental consciousness is not only a way to save money and attract like-minded customers – it’s crucial to connecting with your customers on the deepest level possible.

It’s a movement that has spurned the term social entrepreneurship. Ph.D. Thomas S. Lyon defines this on TriplePundit.com as, “The application of the mindset, processes, tools, and techniques of business entrepreneurship to the pursuit of a social and/or environmental mission.” This definition is dry and boring, but then Lyons hits you with the heart of the concept: Social entrepreneurs play the role of change agents in the social sector. The socially conscious entrepreneur is actually more than just a clever marketing ploy; it’s a direct line to consumers’ heart strings, pocketbooks, and above all else, long-term, passionate brand loyalty.

According to the Psychology Today article, “How Emotions Influence What We Buy”, we make most of our purchasing decisions based on emotion, not logic. In fact, several studies from 2013 show that brand loyalty is based far more on the richness of emotional content than any other attribute of the product; not durability, versatility or even availability. Emotional connections are the most influential factor in long-term devotion to a particular brand as well.

A social entrepreneur focuses on not just supplying their customer with a product. They bring to the table a good feeling, a healthier world, maybe even a better life – or at least, the hope for one.

The article 3 Good Reasons to Use Sustainable Business Practices first appeared on Andrew Rogerson and Rogerson Business Services by Andrew Rogerson