In today's business environment, most large-cap companies now publish annual corporate social responsibility reports, indicating that sustainability in business is no longer optional. Entrepreneurs developing can no longer focus on long-term growth without addressing how their plans impact the environment.
Establishing a sustainable business model that attracts investors and customers involves various phases.
What makes a business green?
Green businesses do not negatively impact the environment, economy or community. Instead, they pursue the Environmental Protection Agency's goals of creating and maintaining conditions under which humans and nature can exist productively and harmoniously to benefit present and future generations.
What are the pitfalls of starting a green business?
Choose a green business idea that addresses a specific need and has long-term growth potential before adjusting your career trajectory or leaving a comfortable job that supports you financially.
Although you can research large-scale opportunities within broad energy, transportation or technology industries, you can also find inspiration by examining your daily rituals. For example, consider starting a bicycle rental company to reduce automobile and gasoline usage. Alternatively, if you love to sew, develop a line of accessories made from recyclable materials.
You can also learn from others' successes. For example, you can model your business after Patagonia, whose founder, Yvon Chouinard, promotes sustainable practice throughout every level of his company and donates 1% of all sales to environmental causes.
If you are an animal lover, draw inspiration from West Paw, which includes four-legged family members in its fight to save the planet. The company constructs toys and accessories from recyclable, non-toxic materials and asks customers to help achieve its plant-friendly goals by returning well-loved toys to its recycling center, where they obtain new life.
Ultimately, it is helpful to view any idea through a green lens before moving forward.
What are the funding options for green startups?
Green or not, every business startup requires an infusion of cash; however, choosing to be green comes with additional costs, including supplies and space. Fortunately, various funding sources can help.
For example, the government offers numerous grant programs that help launch sustainable businesses, though it can take some serious effort to get funding. You can also present your idea to private venture capitalists or angel investors who may offer funding and mentoring in exchange for equity.
Finally, when your business category does not qualify for support from the government or other organizations, crowdfunding can help you obtain donations from like-minded individuals who like your business model.
What does a green business plan include?
Your business plan must address a triple bottom line, addressing people, profits and the planet, showing potential investors how each aspect of your business will incorporate sustainable practices. It must include:
A mission statement and goals
An executive structure
Products, services and target audience
Operating and marketing plans
Financial projections
What is green marketing?
Your green company's success depends upon attracting an environmentally conscious audience. Therefore, your marketing strategy must involve every aspect of your operations. For example, you can avoid traditional snail mail marketing campaigns that waste paper with digital content marketing services.
If you’re unsure about where to begin, online marketing consultants can provide guidance to help you effectively market your brand.
Depending on your business category, you can also obtain certifications from organizations that allow you to display their logos on your materials to convey the standards you uphold.
Are you ready to start a business that sustains your future and the planet? If you’ve got an idea that has growth potential, this could be the perfect opportunity to realize your dreams of entrepreneurship. Carefully assess the pitfalls that come with startups, and get a clear understanding of where to get your capital. Create a stellar business plan, and connect with marketing pros to develop a sustainable marketing campaign. Before too long, your green venture will be up and running!
The ASHRAE NAC Board thanks Tina Martin for writing this wonderful article for us as a guest author.