Did you ever dream about saving the environment-but still making
a bit of money on the side? Then you might consider starting an
environmentally friendly business. This will not only give you the
chance to support a cause you believe in, but also appease your
desire to build a successful enterprise. And while you'll face
certain challenges in going green, you'll also reap some great
rewards.
The time could not be better, according to Eric Brown,
communications director of the Center for a New American Dream, a
Takoma Park, Maryland, nonprofit organization that encourages
sustainable lifestyles and businesses. "The need [to produce]
things without using as many natural resources and the need [to
produce] materials and products without contributing to global
climate change will dictate that we buy things differently,"
he predicts. "And people [will] manufacture and sell things
differently." Brown notes that green businesses can be
anything from a flooring services company that re-mills old floors
to a pest control service that uses nontoxic chemicals to a
business that sells all-natural pet care products.
That's where entrepreneurs can enter the fray-by hopping
into growth areas for environmentally safe products and services.
Brown cites the organic food sector as one example of a prime
opportunity. According to the Organic Trade Association, the
organic food industry is growing between 20 and 25 percent per
year, with sales expected to exceed $20 billion by 2005. Zoe Foods
is just one entrepreneurial natural foods company that has done
well in the organic food market. The Newton, Massachusetts, company
manufactures Zoe Flax & Soy Granola, a natural remedy for the
symptoms of menopause.
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Green businesses have exploded over the past decade, says Rona
Fried, president of SustainableBusiness.com, a consulting firm that
helps green businesses grow. But, she notes, there's still room
for growth. "I got into the field 10 years ago-right after the
Exxon Valdez crashed," she recalls. "Before that, there
was no such thing as a green business-now [almost] everybody is
producing environmental reports. So it's gone from nonexistent
to being a really big field."
Another burgeoning green industry is renewable energy, says
Fried. People are looking for planet-friendly sources of energy-and
investors are looking for companies with the inside track.
"[Many] VC groups are focused on clean energy
[companies]," she says. "It's a very good place to be
right now." She notes that the first fuel cell cars will be on
the road this year and that states are creating incentives to
promote renewable energy.
Local and state governments are also excellent places to procure
work once you get your business up and running. "State and
local governments buy $385 billion dollars worth of goods and
services every year," says Brown. "These governments are
increasingly looking for green products. [In fact,] many of them
have mandates to purchase green products." This can mean
anything from nontoxic cleaning supplies to recycled paper
products. Even start-ups in the early stages of business can log on
to the Center for a New American Dream to view a listing of
current procurement opportunities.
Now's probably a good time to start thinking about the
marketing challenges you'll likely face when promoting your new
green business. It's quite possible that some of your target
customers will already hold preconceived ideas, such as that green
products are of a lower quality than traditional products.
"There can be [a stigma] for sure, and it's certainly
smart business and smart marketing for a company to debunk those
myths-because most of them are really myths," says Brown.
"There are many green products that are cheaper and work
better than their less environmentally friendly counterparts."
Some business owners get around this by promoting their product or
service's high quality alone, without even mentioning its
environmental benefits. On the flip side, though, Brown notes that
promoting both quality and eco-friendliness can be a great way to
set your company apart from the competition. Before you decide, see
how others are marketing in your segment.
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