By Beth Rush
Sustainability has been at the top of everyone’s minds recently. Businesses are increasingly adopting eco-friendly practices and developing sustainable products and services. The key driver for this shift is consumers.
Globally, consumers demand more sustainable options — regardless of the price. Shoppers are willing to pay about 9.7% more for sustainable options, even with the pressure from the high cost of living.
So, if you’ve considered starting a green business, now is the time.
What Is a Green Business?
A green business operates in an eco-friendly way. It prioritizes going green in various aspects of its business, from the products it offers to its operations.
An eco-friendly business incorporates sustainability principles when making decisions to help minimize their negative impact on the environment.
There are many methods of achieving this goal. They can use resources more efficiently, conserve natural resources, or offer sustainable product and service alternatives.
Regardless of the industry or company size, each green business can contribute.
Benefits of Going Green
Being an eco-friendly business while making a profit is a benefit in itself. However, there are other advantages you may experience, such as:
- Improves financial performance: Small sustainability efforts can accumulate in your bottom line. Small practices like recycling, going paperless, and making energy-efficient upgrades.
- Builds brand reputation: Environmentally conscious consumers want products that align with their values. These consumers can see green businesses as being more responsible and caring.
- Adds a competitive edge: Businesses committed to the environment can have an edge over those who don’t. Green businesses may become leaders in the industry, opening many growth opportunities.
- Receives access to finance: Green companies may attract financing options that are unavailable to conventional business ideas. Examples include financial incentives from the government, banks, or investors.
- Attracts new markets: Beyond the average shopper, green businesses mainly cater to eco-conscious consumers. It can be an untapped market opportunity.
10 Examples of Green Businesses
Let’s explore ten examples that show how sustainable practices can thrive in different industries.
1. Secondhand Store
New items can be more expensive than used ones. Secondhand stores can help people save money by offering them pre-loved products. These stores give clothes, furniture, and other used items a second life. They can also encourage consumers to donate their old items, allowing them to have a positive impact on the environment.
2. Organic Catering
Share your passion for food and the environment with an organic catering business. Organic caterers focus on providing fresh, locally sourced ingredients without harmful pesticides. The current organic food sales are skyrocketing, showing that consumers are interested. It’s a delicious way to support sustainable agriculture and promote healthier eating habits.
3. Green Franchises
Whether eco-friendly dry cleaning or car washing, green franchises offer business models already set up to prioritize sustainability. They make it easy for entrepreneurs to run an environmentally responsible business. With more franchises going green, this business model will grow in popularity.
4. Solar Panel Installation
Many people are switching to solar power. As a solar panel installation company, you’ll be able to help homeowners and businesses cut their energy bills and carbon footprint.
5. Eco-Friendly Landscaping
Landscaping companies that use sustainable practices help preserve local ecosystems and reduce environmental impact. Sustainable practices you could use could include:
- Planting native plants
- Using drought-resistant plants
- Placing trees strategically
- Adding natural fertilizers
- Using water conservation techniques
6. Green Housekeeping Services
Do you have a knack for cleaning and want to help others? Try opening a green housekeeping company. Help consumers by using non-toxic, eco-friendly cleaning products to make their homes spotless.
7. Local Recycling Business
Although some town’s departments already have public recycling programs, not all are created equal. Some may not accept certain types of recyclables or may not sort them out properly. But with a local recycling business, you can change that. You can take the initiative to ensure your area fully and properly recycles its items — from glass to electronics.
8. Farmers Market Vendor
If you have a green thumb, you’re in luck. With the organic movement and your talents, you can earn money by selling non-GMO, pesticide-free produce at your local farmers market. As a vendor, you’ll help reduce food miles.
9. Ecotourism
If you’re passionate about your local area and there is much to see, consider opening an ecotourism business. You can offer experiences that connect tourists with nature while minimizing environmental impact. Think eco-lodges, wildlife tours, and outdoor adventures that prioritize conservation.
10. Eco-Consulting
Are you a green living expert? Have you considered sharing your knowledge with others? If yes, then consider opening an eco-consulting business. You’ll be able to help businesses and individuals become more sustainable through your advice on energy efficiency, waste reduction, and green practices.
How to Start a Green Business
Each green business is unique, but many follow the same steps as they start. These steps include:
1. Scan Your Environment
Scanning your environment helps you identify what people want and who your competition is. To find out, ask yourself a few questions.
Which products or services are already available in your area? Is there a market for a specific green product or service? What are consumers or businesses looking for in your area?
2. Develop and Screen Your Business Idea
Understanding your environment better will help you think of a green business idea. Consider your area’s environmental problems and which resources you can tap into to solve these ideas.
Make a list of all the possible green products or services. Once you’re done making your list, screen through them by answering a few questions like:
- Who’s the target audience?
- What needs does it fill?
- How will you sell it?
- What technology can support it?
- What environmental certifications or eco-labels are required?
3. Develop Your Business Plan
You can start developing a business plan with a green product or service chosen. A green business plan consists of the following essential components:
- Executive summary
- Legal format and ownership
- Green business value proposition
- Market analysis
- Marketing strategy and plan
- Production and sales plan
- Life cycle assessment
- Environmental certification or eco-labelling
- Costing and pricing
- Financial planning
The International Labor Organization (ILO) has a green business guide that breaks down these components completely.
4. Approach Partners
With a solid business plan, you can establish the necessary partnerships to start your green business. You may have to present your business plan to a few banks or investors.
Other partnerships will include your suppliers and potential retailers who may be key players in your green value proposition.
5. Start the Business
You can launch your green business with everything in place and a solid marketing plan. Be sure to follow your business plan, but note that you should remain flexible if any challenges arise.
Start Small, Think Green
Green businesses show that sustainability and profitability can go hand in hand. You can make a positive environmental impact without spending a fortune on these startup business ideas. The key? Start small, tap into local resources, and prioritize sustainability in every decision.
About the author: Beth Rush is the green wellness editor at Body+Mind, where she covers topics like the power of climate consciousness at all stages of education. You can find Beth on Twitter @bodymindmag. Subscribe to Body+Mind for more posts by Beth!