UK small businesses are finding practical ways to cut costs, reduce waste, build stronger relationships with suppliers and customers and stand out in a crowded market. Recent insights from Novuna Business Finance, gathered from interviews with small business owners across sectors including manufacturing, construction, engineering, and technology, reveals a number of practical strategies small business owners say are critical to thriving while meeting Net Zero targets.
The top six practical strategies small businesses say are vital for sustainability and growth are as follows:
1. Listen to your customer – Customers often guide how a business becomes more sustainable. Tim Everest from Grey Flannel explains, “We need to be going where people want us to be. Sustainability is driven by our customers, and our success depends on being good listeners.” Grey Flannel uses bespoke mills across England and Scotland, which can make products a bit pricier, but customers are happy to pay.
2. ‘Rebrand’ Net Zero as a culture not a cost – Small businesses often see Net Zero as an extra expense on tight cashflows. Steve Wardlaw from Emerald Life, an insurance brand focused on LGBTQIA+ safety, says, “Net Zero is being sold to small businesses as an extra expenditure that business owners are just expected to absorb, when they have seismic pressures on cashflow.” He adds, “What’s needed are government-backed moves to make sustainability and Net Zero integral parts of business culture and long-term growth plans
3. Be the change in your supply chain – Small businesses can inspire bigger companies by making sustainable choices. Simon Rolfe, co-founder of Sea Change, says, “If people choose Sea Change, or any brand that cares about the environment, it sends a message to the whole industry. It pushes growers, suppliers, and retailers to change. Small businesses can influence big companies to take responsibility — and once big retailers push for change, the whole market can shift
4. Sustainability goes beyond green - Sustainability includes long-term support for employees and the local community. Oxford-based tech company OXIL focuses on creating local jobs and fostering a progressive culture to retain talent. Mark Robertshaw, Director at OXIL adds; “Sustainability can be characterised by how a business supports people.”
5. Invest in new equipment early - Sustainability requires a long-term, strategic approach. Joe Lawrence, Director of Libra Utility Services warns “What we are really saying if we buy older or cheaper equipment”? This in the long-term is a false economy.” Meeting Net Zero targets means investing in new equipment, which can be funded through finance options that don’t drain working capital.
6. Dare to be different - Rising congestion charges and taxes threaten the future of classic petrol cars. Owner, Richard Morgan, is giving them new life by fitting electric engines, making these cars emission friendly. As he says, “We are taking essentially a classic car that’s come to the end of its life, and we are melding it with an electric vehicle and giving a classic car a new lease of life.””
Jo Morris, Head of Insight at Novuna Business Finance, says that “sustainability looks different for every business, each facing unique challenges…What unites them is a determination to balance growth with a genuine commitment to their people and the environment. Sustainability isn’t just a target to hit, it’s an ongoing process that demands resilience, flexibility, and a willingness to learn.”
*This is a shortened and edited version of the Top Ten article that first appeared in issue 212 of Leasing World magazine*