When starting a business, all types of entrepreneurs face various challenges, and as quoted from the book Rich Dad, Poor Dad, “Starting a business is like jumping out of an airplane without a parachute. In mid air, the entrepreneur begins building a parachute and hopes it opens before hitting the ground.” Starting a green business, in some ways, is no different than starting any other type of business when it comes to the key challenges. Green entrepreneurs must learn how to effectively balance profit while making a difference.
Key Business Challenges:
- Creating an Idea and Vision
Developing an effective business idea is faced by every kind of entrepreneur. For green entrepreneurs, you must find an idea that will not only generate profit, but help reduce the carbon footprint on the planet. You must envision the idea and see opportunities when others see challenges. The next step is transitioning the idea into a business opportunity and developing a plan.
Raising money to start a new business is a major challenge for any type of business, green or not. You will need to effectively convince investors of the greatness of your idea and make them understand that you are serious and trustworthy. You must develop the ability to sell your green idea and vision to potential investors by creating a great presentation. You must also have a good story to tell and helpful persuasion abilities.
- Good Decision Making
Good decision-making skills are essential for large decisions, such as the selected materials of a massive construction project, to much easier choices like recycling soda cans. As a green entrepreneur you must take every aspect into effect to employ the most environmentally friendly practices as possible. Keep in mind that certain websites offer green friendly office supplies, like laser toners, and you can get your items shipped directly to your home or office. Another reason ordering items like these online is a good decision is that you don’t have to drive anywhere, so you will also be avoiding further air pollution!
- Business Team
Creating the right business management team can be daunting and it is important to select individuals that will bring fresh ideas on growing your business. A good team is necessary to build a successful business and maximize your strengths. Make sure the team sees the future you envision and is committed to making the possibility a reality. A strategic business team often includes a banker, financial adviser, accountant, legal adviser, and any other expert that will provide a great influence on your business.
Employing good marketing strategies is important for all types of businesses. When developing your methods it is necessary to prove your claims that your green product or service lives up to the promise. Provide real facts and testimonials, ingredient lists, and reviews. It is also important to get your prices right to challenge competitors.
- Finding the Right Employees
It is important to hire employees that believe in your business and are hardworking and trustworthy. For green businesses, it is key to find employees who will be passionate about your business and employing green practices into their daily lives. Employees are representatives to society and they reflect your business practices and ethics.
- Finding Good Customers
It is vital to find good customers who will be loyal to your business and will forgive you if you make a mistake. For green businesses, it is necessary to find customers who are committed to environmentally friendly practices. Bad customers will usually try to find a loophole in a business’ policy to gain personal benefit. You must be willing to steer away from bad customers to retain the good ones.