‘Should my business go green?’

For decades, the answer hasn’t always been apparent but recent statistics show that not only is carbon neutrality a moral imperative, it can also be a financial advantage.

Ecopreneurs are at the forefront of a burgeoning new economy - here’s what you need to know before you dive into it.

Market Demand

A new global analysis, commissioned by the World Wildlife Fund (WWF), and conducted across 54 nations recently found that the popularity of internet searches for sustainable goods around the world has increased by 71% in just five years.

To cut a long story short, there is a clear appetite amongst consumers for eco-friendly brands and, therefore, plenty of room for disruptive new companies looking to dislodge corporations who have not or will not play ball with the new sustainable status quo.

If you want to occupy this niche, it’s still important to carry out plenty of market research and to tailor your approach to more accurately reflect your target audience.

This is going to be essential for marketing.

Unfortunately, not all consumers have sympathies for an eco-friendly approach - age, race, and wealth status are all factors in determining who your products/services will resonate most with. Before you’ve begun to craft your brand, it’s important to bear this in mind.

Business Requirements

Depending on the nature of your business, there will be certain standards, certifications, and requirements that you’ll need to meet if you want to excel within the ‘green market’.

The first (and arguably most important) is your carbon footprint.

Getting this to 0 is a difficult task but possible if you’re willing to refine your supply chain, reduce your waste, adopt remote working practices, switch to renewable energy sources, and look closely at the materials you use in product design.

There are plenty of businesses that are currently (or are aiming towards) carbon neutrality. Amongst these is Google - which met its goal as early as 2007.

If they can do it, so can you!

Start by acquainting yourself with the many eco certifications that you can earn as a business - USDA Organic accreditation, for example, requires an inspection from a certifying agent. Safer Choice is a labeling program that tells consumers which products are safe for human use and for the environment.

Find the ones that apply to you and your customers will respond best to, then work towards meeting their criteria.

Costs

Although there is clear market demand for green brands, the hard work is in your hands and typical business considerations still apply.

This means you should have a clear financial bedrock upon which to build your company - this can come from personal funding or external investment. Ascertaining the exact amount will mean putting together a solid business plan.

Once you know what you’re selling or have a clear idea of the services you’re providing, the next step is to determine the cost of sale (how much is required to produce your goods), revenue streams (how will you and how much will you sell), your margins (based on expenses and projected incomings) and any extra overheads (this could include rent, utilities, etc.)

When making these calculations, be certain to factor in the ‘eco cost’, which may include changes to your supply chain, increased material costs, etc.

Summary

Life as an ecopreneur comes with its own unique set of challenges and advantages. The more work you put in to understand your circumstances (and how these might change with the climate), the better you will perform within a business context.