Why Capital Planning Is A Decisive Factor Of Sustainability

Julie Starr • June 27, 2022



Creating a sustainable business is no easy task. Many entrepreneurs struggle to build a green business that preserves the environment. Indeed, environmentally-friendly best practices tend to be less friendly on the business budget. Sustainable products are likely to be more expensive to make, and they often require more energy as part of the manufacturing process. Additionally, organizing an effective supply of sustainable materials and tailoring profitable green business practices can be tough challenges for small businesses. 

According to a Harvard study, the cost of building a sustainable business in the United States is about $500 billion every year . It is the minimum cost to prevent fossil fuel burning, carbon emissions, and unethical practices. Most companies are not in a position to commit to this level of expenditure. While many businesses choose to move toward sustainable practices and strategies gradually, the International Energy Agency estimates that $45 trillion will be required to introduce green operations into every single company. 

The bottom line: Sustainability is not necessarily a cost-effective choice for a company. While it doesn’t mean that businesses can’t save costs by embracing sustainable decisions, the cost of sustainability itself is not negligible. Does it mean, however, that cost is the main issue that companies will face when they add a sustainability goal to their strategies? 

The answer is no. Of course, building green operations and activities is expensive. Yet, business owners do not struggle with making sustainable investments per se. The most important challenge to making sustainability a viable solution for the business is planning capital use and availability in the long term. There’s nothing t o gain from committing to a single sustainable decision when the company doesn’t prepare for prolonged investments, returns, and activities to maintain its sustainable direction. 

Only the right customers are willing to pay more for sustainability

Sustainable products and services are more expensive than mainstream alternatives. Yet, as many customers have proven, price is not necessarily an obstacle when it comes to selling green products. The desire to embrace a green lifestyle and reduce environmental impact is present among all generations of shoppers. However, Millennials, Generation X, and Boomers are the customers more likely to support eco-friendly companies as they tend to have more disposable income to spend. The audience for green products and services is small, compared to other products, but as it increases year on year. Indeed, the demand is low compared to other offerings, yet the audience group for sustainable solutions is growing steadily. 

With the right communication and marketing strategy, green companies can manage to attract eco-conscious customers and grow their revenues. Sustainable companies can dedicate their content to sharing their eco-friendly strategies and aspirations for the future, showcasing the relevant certifications, and exchanging best practice tips with their network. With more and more green businesses entering the market, your marketing presence becomes an essential part of your brand identity. Therefore, making sustainability a profitable decision begins with preserving market share and reaching year after year. 

Find protective solutions when plan A fails

As mentioned, creating a sustainable business is an expensive strategy that includes your equipment investment, technology choice, and team. 

Picture a situation where the business decides to implement a new tech solution at the operational level to reduce its environmental impact. The solution is a success, but it requires specialist training to manage effectively. Unfortunately, the individual responsible for its implementation goes unexpectedly missing as a result of a long-term medical condition. Without an adequate key man insurance policy in place to protect the strategy and fund the next activities, it is likely the business would be forced to abandon the sustainable solution to save training costs and remain profitable. 

Insurance policies are an essential protective shield for your company. They can prevent loss in the event of injuries in the workplace, customers’ complaints, or even theft. Yet, more importantly, these policies serve a crucial purpose by enabling the company to maintain its long-term strategy. As sustainability is not a one-off investment but a permanent change of direction, operations, and activities, companies must consider how potential risks could affect their strategies. The monetary loss a company sustains through a liability or personal injury case, for example, could contribute to abandoning sustainable activities to focus on low-cost and fast return strategies. That’s precisely why insurance policies are crucial to preserving capital funds for sustainability in businesses, regardless of what the future might bring. 

Investing today to save money tomorrow

Introducing environmentally-friendly practices within a company is unlikely to have an immediate positive return. Sustainability investments can save money, such as investing in renewable energy , but corporations must be willing to lose money first before they can recoup their losses. 

Indeed, switching to renewable energy will reduce the business energy bills. But, the initial cost of installing renewable generation resources for a commercial structure, such as solar panels, varies between $132,000 and $430,000. Needless to say, even with monthly savings, it will still take the business many years to recover the initial investment. Therefore, the sustainable strategy must consider ways of reducing the financial impact of the investment to keep the business afloat. 

Thankfully, there are still plenty of environmentally-conscious financing opportunities for companies. Bringing eco-friendly equipment to the business can bring tax advantages, such as the ability to reduce tax payments. Some federal and regional institutions also provide grants or partial financing options for green solutions, making them more accessible to small businesses. More often than not, it can be beneficial for companies planning substantial sustainability investments to work closely with a financial and accounting advisor who can help with:

  • Funds gathering
  • Tax deduction
  • Green loan management
  • Environmental grant applications 

Failure to prepare for the long-term financial consequences could put on hold all sustainable projects for small businesses. 

Redefining the expected gain

The most important question a business must ask when approaching sustainable strategies is not how long before returns become visible but what types of returns can be expected. Indeed, eco-friendly operations and activities may not immediately deliver a financially quantifiable gain. As seen with renewable energy, it will take many years before savings on energy bills recover the cost of the initial investment. So what is the gain of sustainability for businesses, and what difference does it make?

Sustainable decisions have a positive environmental impact, which is immediately measurable. Beware; however, measurable is not synonymous with visible. For instance, a business can instantly reduce its carbon footprint with the installation of solar panels. But, the local population may not see the positive impact on the wildlife and the air quality for several months and years. That’s precisely why it’s crucial to keep track of sustainable efforts and share the results with your audience group and shareholders. 

Customers and investors also prefer to spend their money on green businesses. So, it makes sense to focus on sustainable activities as part of brand positioning and reputation protection. In the long term, environmentally-conscious companies are more likely to remain relevant in the future market as long as they can manage to secure funds until sustainability drives tangible profits.  

Sustainability is a slow progress

Unfortunately, sustainability is a slow process that needs time:

  • To implement
  • To measure
  • To generate profits

There’s no magical button companies can press to go from 0 to 100 when it comes to sustainability. The first challenge a business faces is to change the established habits of employees and customers. Something as simple as reducing paper waste by asking employees not to print documents can lead to frustrations, a loss in productivity, and slow completion as people need to learn new work routines and tools. So, it’s not so much a matter of immediately saving costs through the elimination of printing. Removing the printer from the office incurs an initial loss, which makes it even harder to motivate employees. 

Ultimately, because sustainable strategies can introduce new methods that clash with existing habits, the audience can be slow to accept transformations. First reactions may be negative, which slows down the progression of sustainability in the business world. Businesses must not only prepare for the initial investment but also for additional losses before they can measure the benefits of eco-friendly strategies. 

Unlocking green funds is not easy

How does a small company find the money to make sustainability its new operational reality? Applying for commercial loans is no easy process. Many companies are not eligible for conventional loan applications as they may not meet credit score criteria or may not have been in business for long enough. 

Similarly, grants may be difficult to obtain for small businesses and startups. Indeed, grants tend to provide partial financing for sustainable transformations, which means the company must still pay the remaining costs. 

Crowdfunding opportunities can be tricky too. With thousands of companies turning to crowdfunding platforms to finance growth and strategic changes, it is a competitive sphere where many fail to secure the funds they need. 

In conclusion, it is important to understand that sustainable strategies require appropriate planning to remain viable. Financing the implementation of eco-friendly technology or carbon-neutral operations is only one of the challenges a business has to overcome. Sustainability is a long-term project that needs extensive capital planning to elevate a company and deliver a measurable, quantifiable, and visible impact. 

5 Simple Ways to Make Your Online Business More Sustainable

By Julie Starr • August 9, 2025
Running an online business can feel like a constant balancing act. You’re trying to grow, keep customers happy, and still have time for yourself. The trick to making it all work long-term is to build habits and systems that last. You don’t need a complicated plan or endless resources to do it either. Here are five straightforward ways to make your business more sustainable without overcomplicating things. Focus on long-term customer relationships If you want your business to last, you need customers who keep coming back. That doesn’t just happen because you’ve got a good product or service. It’s about making people feel valued every time they interact with you. Simple things like remembering their name, following up after a purchase, or sending a quick thank-you email can make a huge difference. People are far more likely to support a business they feel connected to, so keep those relationships personal and genuine rather than purely transactional. Make your marketing work smarter A big part of sustainability is making sure your marketing isn’t draining your time or money. You want it to be efficient and get results. This is where working with seo consultants can help. They know how to make sure people can find your business online without you throwing cash at random ads. Even if you can’t hire someone right now, you can start by focusing on keywords, improving your website’s loading speed, and posting valuable content that answers the questions your customers are already asking. Streamline your products or services It’s tempting to try to offer everything to everyone, but that’s rarely a good idea. The more you offer, the more time, money, and resources you’ll end up using. Instead, focus on the things you do best and make them as good as they can be. When you streamline what you’re selling, you can put all your energy into perfecting it, which makes it easier to maintain quality over time. Customers notice when you consistently deliver something great, and they’ll trust you more for it. Keep an eye on your finances No matter how much you enjoy the creative or customer side of your business, the numbers are what will keep you going long-term. That means knowing what’s coming in, what’s going out, and where you can cut costs without cutting quality. Set yourself a monthly check-in to look at your spending and profits. If you spot something that’s not working financially, don’t leave it for months, hoping it will improve. Tackle it early and you’ll avoid bigger problems down the road. Look after yourself You can’t run a sustainable business if you’re running yourself into the ground. Burnout isn’t just bad for you, it’s bad for your customers and your bottom line. Make sure you’re setting boundaries, taking breaks, and switching off when you can. That might mean scheduling a full day without work every week or turning your phone off after a certain time. The more balanced you are, the better decisions you’ll make, and the easier it will be to keep your business moving forward without constantly feeling like you’re in survival mode. Sustainability in business isn’t about doing one big thing; it’s about making intelligent, consistent choices that build over time. Start small, keep checking in on your progress, and before you know it, your business will feel a lot steadier and more future-proof than it did before.

Sustainable Choices That Heavy Industry Businesses Can Easily Make

By Julie Starr • August 8, 2025
Are you hoping to build a heavy industry business? It’s the kind of company that can have globally sweeping positive and negative effects. On the one hand, you’re contributing to the industry, ensuring there’s enough supply to meet demand, and you can do your best to operate in a sustainable way that prioritizes the environment. But on the other hand, the heavy industry has long been the most significant business polluter in the world. Despite advancements in industry technology and usage, their ranking relative to other sectors, such as food and beverage , and shipping and logistics, has remained unchanged as of 2025. Requiring extensive use of large, heavy, and expensive machinery, the fumes produced by heavy-duty factories in sectors like mining, aerospace, nautical, and metal production regularly cause harm to both human and animal life. It’s why anyone interested in investing or scaling within an industry like this needs to focus on their company’s carbon footprint. There are various ways to ensure you’re limiting your harmful output and waste, and you’ll want to use as many as possible within your operation. Check out our recommendations below. Work with Green Suppliers No matter what stage you sit at in the hypothetical supply chain, you’re likely to source at least part of your overall production material from a supplier. If that’s not the case, you’ll still need to work with companies that provide machinery and equipment, as well as replacement parts for these industrial items. All in all, to make as sustainable a choice as possible, you’ll want to commit to working with a ‘green’ supplier who makes eco-conscious choices at every step. Eco-friendly suppliers will strive to both implement sustainable practices within their production line, as well as provide sustainably made and/or extracted materials. The products and/or parts they send out are likely to be recyclable when they reach their end-of-life period, or they’ll run a scheme where you can send old or broken parts back to them. Offset Your Carbon Emissions Offsetting carbon emissions converts the waste output from your operations into something more positive. If you’re interested in programs like this , you can use official government platforms or climate charity websites to contribute. You’ll be able to find a variety of projects that have been undertaken to remove CO2 from the atmosphere, and they’ll be located in various regions across the world. You can choose to patronise as many of them as you wish, but if you want to focus on specific types, you’ll also be able to do so. When approaching a program like this, it’s usually best to offset month by month, as this helps you stay on top of your carbon footprint. Be sure to invest in as much carbon removal per tonne as your business has potentially contributed to the atmosphere in the last month. But before you go any further, there’s one thing you need to keep in mind here: Carbon offsetting is just one sustainable practice you can turn to, but it’s not the only one your business will ever need to use. Yes, it’s one of the most sustainable practices a heavy industry business can invest in. But that’s only true when it’s partnered with real-time carbon-lowering efficiencies within day-to-day operations. Repair, Rather Than Throw Away Repairing is the best option if a repair is possible. This should be the first step when evaluating old or broken-down equipment. If it can be salvaged, it should be. Otherwise, you’ll have to replace the equipment in question. Not only is that expensive, but it also means more waste to manage. And not all heavy industry tech can be recycled. Sometimes it’s potentially hazardous and needs to be disposed of carefully, and this could have harsh impacts on the surrounding environment. Repairing is your best bet, at least 80% of the time. You can get back up and running faster, and you don’t need to account for a large investment at short notice. And more equipment can be repaired than you might think. It’s not just small, singular parts that can be pulled out. Entire internal systems in even large vehicles, such as freighter ships, can be replaced by secondary parts. A marine logistics provider or deep-sea fishing operator would save a lot of money just by ordering a Cummins Rebuild Kit for one of their vessels. Deciding to put the ship out of commission and eventually scrapping it will contribute to the large-scale waste common in companies like this. Aiming to repair and limit environmental damage will get that same boat back onto the waters in seaworthy condition. Operate with Lower Emission Logistics Shipping your products to businesses and markets always generates a carbon footprint. Unless you’re operating only within the local area and you’re able to transport products back and forth on foot, this is an unavoidable issue. And seeing as you’re a heavy industry business, that’s not very likely. But some shipping options are better than others. Indeed, there are low-emission choices to be made, and you’ll want to look into these logistic partners only. You’ll likely find that air travel is a total no-go zone. Alternatives to this are long-haul road transportation or a traditional shipping company that operates via sea. Yes, even trucking your products over land generates a lot less carbon waste that can damage the environment than flying something! Staying Green as a Heavy Industry Player Working sustainably within the heavy industry is a career-long project. You’ll need to continually make moves to consider what could be streamlined into something greener and less consuming next. In the end, this can help your long-term costs decrease and stay low. Fewer risky investments, fewer fees from environmental bodies, and more productive time within your business. So, it’s not going to be easy, but it will be worth it