Article submitted by Sharon Wagner
Aspiring entrepreneurs who also care deeply about the future of the planet have a unique opportunity to create a thriving enterprise that is also sustainable. If you have been thinking about starting your own business but want to be sure that you do not put additional stress on the earth, South Lake Tablet offers some helpful information to assist you in this noble endeavor.
What Makes a Business Green?
To understand what you need to build a sustainable company, you must understand what this actually means. Hummingbird International notes that green businesses utilize sustainable materials to construct their products while using as little energy, raw materials, and water as possible. They also aim to cut carbon emissions and be energy efficient. For example, a business can install solar panels at the workplace. Wattage will impact the solar panel’s price, but regardless of upfront costs, after the initial investment in installation, businesses can save long term.
Many industries can partake in the green initiative, even some may not think they can. Gardenista points out that landscapers can use organic and eco-friendly gardening supplies and construction companies can provide environmentally responsible options like solar panels or energy-efficient appliances.
Business Model and Clear Communication
Like a traditional business model, a green business model seeks profitability, but not at the cost of minimizing the potential negative impact on the planet. To stick to the green principles, you must strive to put your local ecology and community first.
Costs
Green businesses face the same startup costs as others such as office space and supplies, staff, technology, insurance, and business licenses and permits. According to IncFile, most micro businesses require about $3,000 to start. Purchasing sustainable materials and striving for a minimal carbon footprint has the potential to add costs to your startup estimate, but can actually save you money in the long run.
Profiles
One of the first companies to prioritize the health of the planet was Patagonia. For over 35 years the company has donated 1% of its sales to conservation efforts. Founder Yvon Chouinard invited other businesses to join the efforts by co-founding 1% for the Planet.
Anders Ankarlid, the founder of A Good Company, which produces everyday products, decided to start an eco-friendly enterprise with his children’s future in mind. Their Truly Circular Fashion line promotes upcycling used garments into new ones, and offers the incentive of credit on a future purchase to help promote sustainable fashion.
Funding
While environmentally-friendly businesses can fund their operation through conventional methods such as owner investments, outside investments, and loans, there are also numerous options for loans and grants to assist green companies. Look into the Environmental Protection Agency and Department of Energy grants to see whether your particular enterprise could qualify.
Marketing
It is important to prominently note your planet-conscious means of conducting business on all of your entity’s marketing materials. Being eco-friendly helps you stand apart from your competitors and letting potential customers know will draw like-minded buyers to your products or services. Some of today’s buyers specifically seek out companies that consider the health of the environment when shopping. To take advantage of this, highlight your green efforts on your website, social media, flyers, business cards, and storefront.
Unwanted Outcomes
As with any business endeavor, green companies are at risk of failing. This would negatively affect your financial situation as an entrepreneur, especially if you left a lucrative career to branch out on your own. This is why it is important to understand the market you are getting into and properly plan for your personal finances in the first few years of running a company.
The desire to launch a sustainable business is certainly a noble one, but will still require ample planning, marketing, and financing in order to be a success.
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