SMEs saving the world – literally

Agile marketing

Agile, innovative small businesses have what it takes to make the big changes the planet needs to survive the climate crisis. Meet some of the dedicated owners already leading by example.

As a new entrant to the world of small-business ownership, I would liken the initial set up and launch phase to drinking from a firehose. The pace and ferocity of it all can be quite overwhelming, while being exhilarating at the same time. Having only recently decided to wave farewell to the comforts of PAYG, I, like the many readers of Inside Small Business, chose to embrace the freedom and accountability, the risk and reward, and the opportunities attached to owning and running a small business.

I worked most of my career in the financial services industry, enjoying the comforts and security that came with it. My colleagues thought I was crazy to resign and launch my own ethically focused managed fund. Yes, this move certainly came with significant risk; however, as there was a rapidly increasing demand for ethical and responsible investments and a shortage of alternatives that were truly ethical and responsible (and not one investment manager whose operations were carbon-neutral) I accepted the risks, raised the capital, and made my move. Do I have regrets? Only not doing it sooner.

Refreshingly nimble

Having worked nearly two decades for large organisations, I had become tired of the big-company molasses and the glacial pace at which things moved. I mean this in both the operational sense and the sustainability sense. Nothing kills desire and enthusiasm faster than overly bureaucratic processes and resistance to change (or being changed). This is where small business dominates big businesses: with their agility and adaptability. When a market pivots, a trend changes, or an opportunity arises, a small business will always be able to respond far quicker than its larger counterparts.

The perfect example of this from my own business is COP26 which, as you all no doubt recall, was the global climate summit held November last year. In this forum, leaders from around the world met to discuss and agree to act on the climate crisis. In my business, I was able to respond to each of the daily events during COP26 and produce articles, marketing initiatives, virtual events, education sessions, even television appearances, all within hours of the conclusion of the day’s proceedings. Rewind to 12 months earlier, when I was working for a big business; if I had wanted to issue an email to my network informing them of something that occurred at COP26, it would have been drafted by me, emailed to marketing to polish, emailed to legal to review, back and forth until finally the message was watered down enough not to ruffle any feathers. Then it would be sent out, with several days having passed and the spark of the moment well and truly gone.

A related example – where most small businesses are able to embrace change years earlier than medium to large organisations – is achieving carbon neutrality. This was one of the first things I worked on when launching Haven Wealth Partners, as it was essential that my managed fund talked the talk and walked the walk. My business became one of the first investment managers in Australia to achieve carbon neutrality. While my significantly larger peers were planning on converting their portfolios (which were riddled with assets from controversial areas such as fossil fuels, gambling, tobacco, detention centres, etc.) into more green and ethical funds, I was able to launch my ethical fund free of all controversial areas and immediately focus on achieving carbon neutrality. There is absolutely nothing preventing each and every small business doing the same.

Get in early

With Australia’s Net Zero commitment now official, I would suggest that it is only a matter of time before it is expected of big business (and SMEs soon after) to measure and report on their environmental impact and work seriously to improve it. Larger organisations are likely to apply a ‘progress, not perfection’ approach to achieving carbon neutrality, but small-business owners can achieve perfection with relative ease simply by undertaking a carbon audit and purchasing carbon credits. Getting in early would be prudent, as once big business enters the market and demand increases, it is fair to assume the price per tonne of carbon offsets will as well. The beauty of carbon offsets – trees – is that once purchased and planted, they offset the same level of CO2 every year. They are literally the gift that keeps on giving.

There is a helpful analogy I acquired during my career when explaining to my clients how they could save money: you can either go and earn more, or spend less. This same analogy should be applied to business. When aiming to increase net profit, the alternatives are: Working to increase revenue or reducing expenses, waste, and inefficiencies. During a carbon audit, you will be required to identify things such as your power usage, water usage, fuel efficiency of your cars, personal waste and pollution and more. These items not only bear an environmental cost, they also come with a monetary cost. You will need to refer to your statements, bills, etc. to obtain the usage information anyway, so while you are there, spend some time analysing your usage levels and seek to make smarter decisions and find efficiencies. What you manage to save by using your energy-hungry machinery during off-peak times or by installing solar will not only translate into money in the bank, but also will reduce your carbon footprint at a commensurate rate.

Furthermore, imagine if you offset your carbon footprint now and then work on reducing your CO2 production over time. You will not only save money but you will take your business from carbon neutral to carbon negative.

We are many, leading the way

Small business is the backbone of the Australian economy, with more than 2.4 million in operation. This is a widely known and often-mentioned fact. It stands to reason then that small business will lead the way into a more sustainable future. The combined efforts of millions can result in a magnificent difference. As the Tanzanian proverb goes: little by little, a little becomes a lot.

Much like the community that supports my business, and the communities that support yours, we as a community of business owners must learn from and support one another. I encourage you all to get ready to be inspired and read the following feature. See what ideas, concepts, and approaches you might be able to introduce into your own business to increase revenue, reduce expenses, and be more sustainable in every sense of the word.

This article first appeared in issue 35 of the Inside Small Business quarterly magazine