- March 30, 2022
- Posted by: Curated Contributors
- Categories: Business Credit, Business Financing
Attention Lendzz.com readers: Our good friends at AdultingDigest.com have contributed another excellent article for your reading pleasure. Please check out the article from AdultingDigest.com below titled, “Green Business Guide for Aspiring Entrepreneurs”.
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Green Business Guide for Aspiring Ecopreneurs
According to research by IBM and the National Retail Federation, almost two-thirds of American consumers will pay more for green brands and 78% say they are more likely to purchase environmentally friendly products. Starting a green business and building a green marketing plan is a good way to capture this market. This guide from Lendzz offers some ecopreneurship inspiration and tips for aspiring ecopreneurs.
What Is a Green Business?
Green businesses strive not to make a negative impact on the environment, community, or economy. They center progressive ideas about environmental concerns, human rights, and related causes as their company mission and values. They also utilize environmentally sustainable resources and enact socially responsible policies.
What Are the Risks of Starting a Green Business?
As with any other type of business, there is the risk that your green business could fail. To reduce this risk, it is important to research the profit potential of the business you are
considering before making any major decisions, such as quitting your job. Starting and running a green business can be more expensive than other types of businesses. Choosing sustainable practices may make it more difficult to turn a profit. Additionally, you may need to charge higher prices for your products or services, which could make it more difficult to attract and retain customers. Finally, if you are not careful with your marketing, Earth911 points out that you may face a backlash if your efforts are perceived as greenwashing.
How Do I Start a Green Business?
Focus on establishing best practices for sustainable purchasing, manufacturing, and product development. Key areas to focus on include lowering energy consumption, using sustainable materials, eliminating waste, improving efficiency, complying with environmental laws, and purchasing green products, equipment, and services. It is helpful not to treat going green as an all-or-nothing project. Identify the aspects of your business where green practices have the most competitive advantage and impact for the added cost and prioritize those when developing your business strategy.
How Do I Market a Green Business?
Transparency is a key aspect of marketing a green business. If you are not able to achieve all of your green goals at this stage of your business, be honest with consumers and explain your plan for continuing to make your business more sustainable as you grow. Clearly explain your company values and policies and how they benefit the environment. Educate your staff about green business practices and make sure they can communicate those practices to customers.
Also, when you focus on digital marketing techniques over less eco-friendly methods, such as billboards and paper ads, it’s important to come up with an appropriate logo design early on. Your logo will appear on all your marketing materials and outlets, as well as your business card and letterhead, so think through the design elements carefully. When your identity and message are represented correctly and succinctly, your logo will pop out right away and stand apart from any competitors.
How Can I Fund a Green Business?
Seek out investors who are interested specifically in supporting green businesses. Search for grants for sustainable businesses, such as energy efficiency and renewable energy grant programs from the Department of Energy Grants and Loans and green building grants from the Environmental Protection Agency. Women entrepreneurs sometimes have a harder time obtaining business grants; however, grants exist specifically for women-owned startups, such as the Girlboss Foundation Grant and the Amber Grant Foundation.
You can also get funding through a small business loan. Lendzz can help you find and secure financing. When deciding on approval and terms, a lender will consider your current debts, so take steps to reduce your debt-to-income ratio. This is calculated by adding up existing monthly debt payments and dividing this number by your gross monthly income.
Ecofriendly startups, such as Treeap, which was started by Godefroy Harito, Jules Buker, and Leo Ng to allow people to plant trees from their phones, and EcoCart, founded by Peter Twomey to help users offset their carbon emissions for free, have been finding ways to make money while making the world a better place. With a little inspiration and a solid plan, you can follow in their footsteps.
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