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What are the characteristics of businesses that can survive? What is sustainability? What is a business model? What is a sustainable business model? What are the characteristics of a sustainable business model? How should a good business plan be made? How can a business survive? Continue reading for the answers to these questions.

What is sustainability?

The term sustainability is often interpreted as ecology, eco-science-oriented strategy, and other environmentally friendly issues. However, sustainability has been defined as the achievement of society's economic goals without affecting the chances of future generations.

The business model definition is defined by Osterwalder and Pigneur as a business structure that defines, produces and captures value . A sustainable business model is a business model that creates competitive advantage through superior value creation for the customer and contributes to the sustainable development of the company and society.

The most important characteristics of businesses that can survive are that they provide benefits to the society and environment they live in. These two characteristics have become the prerequisites for creating demand. The third element is undoubtedly economy.

When we talk about sustainable business models today, these three features appear as an indispensable infrastructure. Some authors emphasize the issue of " creating competitive advantage with superior customer value and contributing to the sustainable development of the company and society " as the business plan of sustainability.

When making a business plan, it should be based on the principles of information sharing, connection activities (sustainability among companies), awareness and multiple value creation . When making a sustainable business plan, one should be open to the ideas of common minds.

What is a sustainable business model? Characteristics of a sustainable business model?

For business models to be called sustainable, their implementation must be matched by a thriving economy that is making social progress. Business models must ensure that economic growth is not harmed by environmental damage.

The main element of a business's survival is economy . The main condition for the sustainability of all economic supports, whether in the short term or in the long term, is the regular provision of economic resources that feed the activities without interruption and in a way that allows the activities to continue at an effective level.

However, when the main purpose of a business is only monetary returns, problems arise in terms of sustainability . While businesses earn monetary gains, they must prioritize the contribution they will make to the environment and society .

For example, the sensitivity shown in the consumption of natural resources, not being harmed during use and acting in accordance with ethical rules and the perception of these by all stakeholders are among the important strategies. If the economy of the business is not sustainable or scalable together with its contributions to society and the environment, the need to update the business model is clear.

Another feature of a sustainable business model is the participation of stakeholders and the contribution provided to stakeholders. Ensuring the competencies of all stakeholders in the aspects that concern them throughout the product life cycle and effectively obtaining and using the feedback of these competencies to improve the business can include business models in the sustainable class.

One of the indispensable features for the continuity of business model applications is the system approach. A successful system application is needed to plan and implement the clarification of the roles and responsibilities of all stakeholders, including the state, suppliers, customers, employees, and shareholders, within the system .

All sustainability policies and strategies that are created must be implemented with defined processes to reflect how they will create value, in customer interaction activities, and in supplier relations . The system plays a critical role in ensuring that all stakeholders focus on medium and long-term economic, social and environmental goals.

Sustainability is a must for businesses

In a practically sustainable business model, a change in management mindset is needed as businesses no longer focus on fixed short-term profits, but focus on a broader medium to long-term perspective. Such a focus provides analysis that helps us understand the future benefits for our business and our world.

It is known that short-term focus is the biggest obstacle to sustainable business models. However, the transformation of short-term and solely economic-focused management of businesses into long-term and sustainable business models requires a significant change in mindset.

It is possible for businesses to achieve this transformation regardless of their economic, social and environmental positions. Although it may cause market loss, shrinkage and economic problems in the short term, their strategic transformation will have effective returns in the medium and long term.