How can you develop an environmentally sustainable start-up venture business model?

Don't get into sustainability as a gimmick! Search your soul before embarking on adding sustainability as a part of your business: are you truly passionate about the value you're looking to create? If the answer is not a "hell yes!" it may be better to focus on other value added benefits for your customers. In the end you'll need to commit resources to the endeavour, and as an early stage company, every bit of resources (time, capital, manpower, headspace) are precious. When push comes to shove, will you commit? Be intentional with it from day 1!

Developing an environmentally sustainable start-up business model requires a comprehensive approach that considers both the environmental impact and the financial viability of the venture. Start by identifying a significant environmental or social problem that your venture can address. Research the problem thoroughly to understand its causes, consequences, and potential solutions. I had opportunity to mentoring few innovative approaches to tackle the problem, such as transforming Waste to wealth ,Carbon Farming promoting sustainable agricultural practices etc . Example like a startup revolutionizing India’s forestry sector to sequester carbon, support farmers, create green jobs and restore and protect fragile ecosystems.

Sustainability needs to be the icing on the cake, not the cake! You won’t be successful developing and selling a product or service just because it’s organic or recycled or energy efficient. Those are all great attributes but the customer (especially a broad customer base) wants the “thing” to be what they need and those attributes are just the final box ticking/not the first decision factor.

Grunds?tzlich finde ich Umsatzmodelle gut, die sich am Erfolg des Kunden orientieren. So wie in der Vertriebsbranche z.B. nach generierten Leads oder Kunden bezahlt wird. Anderes Beispiel: Mein Startup 21done bietet eine Lern-App für Unternehmensmitarbeiter an und wir überlegen, dass der Unternehmenskunde uns nach Lernerfolg bei seinen Mitarbeitern bezahlt. übertragen auf nachhaltige Produkte und Gesch?ftsmodelle: Das nachhaltige Unternehmen kann sich z.B. nach Menge der CO2-Einsparungen bezahlen lassen. Das würde auch einen Anreiz zur Messbarkeit geben.

Some of the startups working on various revenue models 1. Selling products or services directly to consumers or businesses. (Direct / Channel / D2C) 2.Providing ongoing access to products or services for a recurring fee. 3.Waste-to-Value Converting waste into marketable products or generating energy from waste. 4.Carbon Offsetting: Providing carbon offset services to businesses or individuals Few Startups like Farmer for Forest , Ohm Banana Craft are working on this arena .Farmer for Forest carry out soil restoration and afforestation on degraded land. Reforestation is done on partially forested land. All afforestation and reforestation is done with native species as recommended by botanists are working on innovative revenue Models

Investors will trust you if you have an environmentally-friendly edge, keep that in mind. With that, you have a certain level of responsibility. So start building from what they think, and slowly take it from there.

As you progress, be prepared to adapt your business model based on new information and feedback. If your assumptions prove incorrect, don't hesitate to pivot your strategy or explore alternative approaches. However, if your core idea remains valid and you're making progress, persevere and continue refining your solution

Today, sustainability is more than just a strategy; for many businesses, it’s a core principle. The rise of B Corporations, companies that meet rigorous standards of social and environmental performance, is a testament to this shift. Consumers, especially millennials and Gen Z, prioritise brands that align with their values, making sustainability a competitive advantage. Communicating this authentically and transparently is more important than ever in winning and retaining loyal customers.

Effectively communicating your venture's positive environmental and social impact is essential for attracting investors, customers, and partners. Highlight the measurable impact your solution has on reducing waste, conserving resources, or improving livelihoods. Few examples of Impacts as as 700 + acres of land under ecological restoration 17000 + rural man days of employment generated 6,185,000 + Kg's of Carbon sequestered per year are really good ways to captured the attention of stake holders .It is also important to obtain relevant certifications to validate your commitment to sustainability.

Fundamental business principles do not change even if Social Impact is at the heart of your startup. A customer will buy if there is a clear value offered. Founders will need data to back up their claims on "how" their product/service is adding value to their customers and whether the customers really "see" the value. Unless these three things match, building a sustainable business model will be shaky at best. Countries like India offer founders (esp technology-led innovations) with fertile opportunities to experiment with products that solve burning issues - a deep dive to gain first hand experience of society/communities/businesses will go a long way to build startups offering realistic solutions.

Any current process or product that can be improved with a sustainable or greener improvement will be a candidate for a sustainable venture. Ex. Substituting fuel based transport with green/ev charged ones is a simple example, along with managing the capital expenditure. Reducing carbon footprint is another venture idea, using solar, hydro, thermal or wind.