The demand for ecologically friendly, green products has never been higher. If you’re reading this blog post, I imagine you’re exploring the possibilities of launching your own green business. Bravo! You’re taking on a big challenge and some risks, but you’ll also benefit from more support for your journey than ever before.
Today, a solid core of smart, dedicated, and creative people in the private sector and government are deepening the roots of the green business sector in the Canadian economy. If you’re looking to tap into this thriving industry, below you’ll find seven helpful tips to get started.
1. Figure Out Your Environmental Passion
A driving force behind many green entrepreneurs is a desire to make a difference in some aspect of the environment. Maybe you want to reduce ocean plastic or food waste. Perhaps you want to develop a cutting-edge clean energy product. Or, your interest may be in the service sector – you want to help other companies operate more sustainably.
The World Trade Organization estimates that global trade in environmental goods and services will be worth US $1.9 trillion by 2020. Where will your business fit in?
2. Decide if You Want to Start a Green Business—Or Something Else
At a large environmental conference, I asked the vice president of a major bank if she had any advice for prospective green entrepreneurs. She said, “In my work in the sector, I’ve met many sincere, deeply committed individuals who truly want to do something positive for the environment. Unfortunately, many of them seem to have this belief that if they build this great green product or service, the customers will just come. They have no marketing or distribution plan to speak of. When we ask to speak to a financial person in the company, they’ll say that their spouse does the bookkeeping—is this who we’d like to talk to? My advice is this: if you want to stay tiny or operate as a non-profit, that’s great. But if you want to create a more substantial green business and want capital and expertise to grow it, then you need to be able to clearly explain to people how your company is planning to make money.”
3. Do Your Research
The environment is a global issue, and profitable green companies exist across Canada and internationally that you can emulate. Case in point? Escents. In 1992, after visiting a shop in Portland that spurred the idea, founder Jacqui MacNeill opened her first Escents cart at a market in North Vancouver. By 2017, Escents had grown to an international brand with over 74 retail locations across Asia and Canada.
You’ll save considerable time and money learning from other businesses. Scour your potential competitors’ websites, and review their social media feeds and YouTube videos. Track and compare their pricing. Buy one of their products or sample a service. How are they attracting customers? What’s their secret? What would you do differently or the same? Where have they left doors open for competitors like you to enter? You might also spend a few bucks on travel and visit thriving eco-businesses that are outside your geographic area – they’re likely to be less threatened and more open to questions.
4. Determine if You Want to Start a Small Green Lifestyle Business or a Start-up That Can Scale
As you plan, a question to ask yourself is related to size and scale. Do you envision your enterprise as a small office or home-based business? Will it be limited primarily to your own efforts and perhaps a couple of contract employees down the road? Is your goal to build a small company of one to 10 people that you hope will generate a couple of hundred thousand dollars in profits and up to a million dollars in annual sales? Or, are you looking to create a start-up with cutting-edge environmental technology that you eventually hope to sell for millions? In each case, your decision may be driven more by the type of business you want to create rather than your desire to operate a company of a particular size.
Does it matter what type of business you want to start? Yes, it does. If you intend to build a small business with fewer than 20 people, your concerns will be quite different from a green company planning to develop a product or service that will be a national or international market or submarket leader.
5. Talk to Your Family and Support System
Especially early on, be prepared to work hard. When you’re at family events, you may be multi-tasking, wondering how to replace a key employee who resigned or how to placate a disgruntled customer. Think hard about priorities and balancing the needs of your home and work life. If you have a life partner, make sure they agree with your decision to leap into the entrepreneurial lifestyle. It’s not a structured nine-to-five, and you’ll likely spend a lot of time hard at work.
6. Network and Learn
It’s a good idea to speak with other green business owners before formally starting yours. Most towns and cities have organizations, meetings, and seminars designed to assist new entrepreneurs. In some larger centres, law firms will hold talks covering all aspects of starting a business. I attended such a session in Vancouver and found it helpful and a marvelous occasion for networking. Take advantage of these and similar events to garner unbiased information from a variety of sources. If you can afford it, visit some tradeshows or attend conferences related to the environmental field where you’re planning to do business. They can be great sources of business ideas and inspiration.
7. Follow an Established Footprint
As you start, you’ll need to take all the steps that any aspiring entrepreneur needs to take to launch a successful company. If you don’t know where to start, Small Business BC is a great resource.
We have great environmental challenges before us, but the creativity and energy of entrepreneurs and visionaries are leading the way to a more environmentally friendly economy and a sustainable world. With courage, resourcefulness, and passion, we can make the change happen. Starting and building your green business can be your contribution, your mark on the world, and your path to success. Good luck!
Small Business BC is Here to Help
SBBC is a non-profit resource centre for BC-based small businesses. Whatever your idea of success is, we’re here to provide holistic support and resources at every step of the journey. Check out our range of business webinars, on-demand E-Learning Education, our Talk to an Expert Advisories, or browse our business articles.