The following is a partnered post…
The excitement of going into business for yourself is something that any entrepreneur can identify with. It’s a chance to take something you are good at, and make it your everyday “thing”. And one thing that we all like to tell ourselves is that when running a business, we’ll take some lessons from our lives as employees. For any business that we have worked for in the past, we will want to take the good things they did, avoid the bad things, and build something we would be delighted to serve as an employee.
It’s easy, though, once the business is up and running, to fall into patterns that other businesses demonstrate over time. This is something that happens when the focus is on stacking up easy wins and making as much money as possible. And while making money is important, there is an increasing focus in the present day on running a business that is ethical. A focus on ethics can keep your business focused on avoiding those potentially toxic patterns, and as we will see, this isn’t just good from a moral standpoint, it can benefit the bottom line too.
Understand your local area
It is possible to go global right from the start with a new business, but the ones that are most stable tend to have a local angle for at least the early days. It’s considered more cautious to start in a controlled way before scaling, and this will allow you to get used to all the aspects of running a business without needing to worry about becoming overwhelmed.
Running a startup business will be a lot simpler if you’re able to think locally early on. As you begin to hire employees, you can be confident that they know the area and you’ll be able to understand their needs when it comes to issues like travel and childcare. You’ll also be in a position to source materials and products locally, which cuts down your carbon footprint and allows you to travel in person when there is something you need to discuss. Establishing yourself as a local business allows you to serve local needs, which will be appreciated in the community.
Recognize the power of ethical business
It’s easy to be seduced by the idea that ethics are nice to have, but that they put the brakes on a business’s ability to grow. Increasingly, though, this is proving to be false. More and more people are placing ethics at the top of their list of priorities when it comes to choosing where to spend their money. If you gain a reputation as an employer who sources responsibly, hires locally and shows an interest in providing solid healthcare and integrating workplace chaplaincy, people will be encouraged to do business with you.
It’s much easier to build an ethical business from the ground up than it is to apply ethical principles to one that is already up and running. If you start with a core of ethical principles, then you will make decisions that serve that goal, because they are the obvious choices to make. This is something that will attract attention and may well assist you in building a brand which gains wider recognition. Far from being an obstacle to growth, an ethical outlook can be a selling point that assists your efforts to scale up when you decide to.
Remember what you didn’t like about being an employee
One major reason that people begin their own businesses is the feeling of not wanting to work for an employer anymore. It’s increasingly easy to become burned out working in a 9-5 job, for a whole range of reasons. People report feeling unappreciated, that there isn’t enough communication, and that what they do doesn’t matter. Perhaps the most important aspect of running an ethical business is that you don’t let that happen when you hire employees. So it makes sense to consider what you didn’t enjoy when you were working for a wage, and let that guide your decisions when you are hiring.
Paying a fair wage is important, and if you find that difficult initially, it is worth having the conversation with anyone you plan to hire. You’ll pay them what you can, and if that’s not market-leading then you can at least be a considerate employer and allow their pay to scale up as the company does. In the meantime, being receptive to their ideas and responsive to their needs is something that can make up for any gap between their expectations and the reality. Pile on as many benefits as you can, and offer flexible working. But to reiterate, pay a competitive wage as soon as possible – ethics are about following through on positive words.
Don’t be afraid to brag
You should run a business on ethical principles because it is the right thing to do. You should not be doing this because it’s good publicity. However, it is good publicity. That’s a bonus, but the fact that it is the right thing to do doesn’t mean that you can’t use it as a selling point, both to potential employees and to customers. As we have explained, people will gravitate to businesses with a strong ethical core, and if they see you getting attention for being just such a business, they will reward your efforts.
Gaining attention as an ethical business is a little bit different than the usual ways of promoting a business. Taking out a billboard saying “We are more ethical than anyone else” produces the wrong impression, not least because even the most questionable businesses try to affect a veneer of respectability these days.
Instead of pushing your business forward through tokenistic gestures, promote it by always being present in the right places. If you run a food business, set up at local farmer’s markets and brand yourself as proudly ethical. If there are stories about business ethics – sustainability, employee awareness, and so on – in the news, talk about your model on social media and make yourself available for appearances on local media. Reach out to ethical influencers to see if you can get them to work with you. What you want is for people to think about your business when they hear the word “ethics”.
Leave a Reply