May 17, 2008

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Add Green To Profits

05/05/08

This year, a strange but meaningful coincidence occurred — Earth Day fell during Small Business Week.

Now you may not have been aware that the third week in April is Small Business Week. Nevertheless, it’s a great time to consider how your small business can contribute to, and make money from, helping save our planet.

Even if you’re tired of hearing about global warming, carbon footprints and organic food, let me emphasize that this isn’t just about saving the planet but also about making money. You can improve our environment and your bottom line at the same time.

Small companies can take four major approaches to incorporating positive environmental activities in your business. In order of increasing levels of commitment, these four approaches are:

Improve your internal operations. Every company can save money and help save the planet by taking a few easy steps. The most important is reducing waste of any kind. Remember, waste not only uses up the Earth’s resources, it squanders your money.

One of the hardest things to remember — but easiest things to do — is to turn off all electronic devices and utilities overnight and over weekends. The extra minute it takes to warm up your printers, monitors and copiers in the morning isn’t really that much of a hardship, is it? Also, look for eco-friendly supplies and raw materials.

If possible, encourage employees — and yourself — to walk, bike or take public transportation to work. I intentionally rented office space in easy walking distance of my home. Yes, I pay higher rent. But the benefits — money saved on gas, not using my car five days a week, being able to run home quickly if needed — far outweigh the extra rent. The social networking company Facebook gives employees an extra $600 a month if they live within one mile of work and walk or bike. What a perk!

Differentiate yourself from the competition. Emphasizing your green business practices.

For instance, for one of my speaking engagements, I was picked up by a car service, OZOcar, that only uses hybrids. That gave the company a clear distinction from the dozens of regular limo services. Years ago, I hired a cleaning company because it only used non-toxic cleaning products. Many customers make choices based on a preference for environmentally sensitive products or services, and this can give you a competitive advantage.

Sell a “green” product or service. Ready to go totally green? The market for environmentally sensitive products and services is exploding. If you’re thinking of starting a new business or need to revamp your existing company, consider focusing on serving the eco-conscious market directly. In many communities, contractors specializing in solar panel installation are expanding while other contractors are suffering from the housing slowdown.

In virtually every field, there are consumers and businesses seeking eco-friendly alternatives, and you could be the source. For instance, I’m planning to re-carpet my home, and I’d prefer to find carpets that don’t have the chemicals in typical carpets. I’d be eager to find a store that specializes in environmentally sensitive floor coverings.

Invent something. We’re still in the very early days of the green movement. Many problems need to be solved. There are many angel investors and venture capitalists looking to fund creative companies that address environmental issues. So if you’ve got a good, workable idea for a product or service that can help save the planet, now’s the time to write that business plan, develop that prototype, build that product. There are fortunes ready to be made.

Every week is a good week to celebrate the Earth and small businesses. Even as a small company, you can make a contribution to helping save and repair our planet while growing your company and your bottom line.

 

 

Rhonda Abrams is the author of “Six-Week Start-Up” and “What Business Should I Start?”

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