Feel the Heat

It's reasonable to assume that most entrepreneurs start businesses to see the green--the big bucks. But as more business owners consider their impact on the environment, entrepreneurs are seeing the importance of going green, from working with recycled materials and eco-friendly suppliers to using green packaging and PR.

According to a recent study for the Grocery Manufacturers Association, 85 percent of U.S. consumer business companies have active sustainability initiatives. "The demand [for green business services] is there, but the supply is minimal," says Chris Manning, executive director at The Green Chamber, a national organization focused on environmental stewardship. "It's a young industry, [so there's] tremendous opportunity." Manning, 39, founded Manning & Associates Financial Services five years ago because he saw the need for green investing. This year, the Houston-based business projects sales of $545,000.

Seri McClendon, 40, and Ken Eskenazi, 52, saw that opportunity back in 2002 when they started Clean Agency, their green marketing firm in Pasadena, California. "We believed the environmental component was going to be a factor for businesses to consider very soon," says McClendon, whose $1.4 million company serves green or soon-to-be green clients. "Businesses need professionals [who] understand the sustainable values of their companies."

Whether you're launching a consulting firm or a green consulting firm, offering shipping services or eco-friendly shipping services, you're starting a business. Here two experts offer some tips for doing the latter:

• Do your due diligence. Says Manning, "A green business adheres to the same basic business principles as any other business, so do your research first."
  
• Be passionate. "Be sure that you really care about [being] green and pick an area within green that you are really passionate about," says Graham Hill, founder of Treehugger.com, a green media outlet and information resource. Manning warns against "greenwashing"--putting more time and money into advertising the greenness of your business services than actually implementing green practices.
  
• Do less, better. Focusing your time and energy on the core of your business service company and its green efforts is more effective than taking on numerous tasks with little end result, explains Hill. "Be very clear about what problem you're solving," he adds, so that you'll know where to focus your efforts.
  
• Practice what you preach. You can offer eco-friendly printing or packaging services, but the meaning is lost if your company doesn't use those services, too. "Integrate green principles deep into your business strategy," says Manning, who also suggests getting involved in both your local and national green communities.
  
• Think long term. Global climate change and concern for the environment aren't going away, and being green isn't just a fad, so your green business services will increasingly be in need. Make sure you're in it for the long haul, says Manning, and "realize both the tangible and intangible benefits of a green business."

This article was originally published in the March 2008 print edition of Entrepreneur's StartUps with the headline: Feel the Heat.