The explosion of organic and eco-friendly products on retail store shelves is more than just a passing fad. It's big business. This reality presents opportunities for environmentally minded entrepreneurs ready to start their own small business.
Successful green businesses not only benefit the environment, but also use green business practices as a means to market their products. If you are thinking of starting a green business, consider the following tips:
Find Your Niche
The eco-friendly lifestyle continues to catch on with consumers which presents many growth possibilities for businesses. Production of food, cosmetics and cleaning supplies are growing areas within organic trade. To be successful, look for opportunities that match your interests.
Get Certified
To differentiate your product or service as environmentally sound, consider obtaining certification from an independent, third-party. Being certified means that you can include their "ecolabel" on your product's label and other marketing materials. This ecolabel is important for attracting "green" customers, and can strengthen the value of your brand. Investigate the following organizations and programs for certification opportunities.
Domestic Certification
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Products: Green Seal sets product standards and awards its label to a wide variety of products
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Agriculture, Manufacturing and Electricity: Certified by Scientific Certification Systems
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Buildings: The U.S. Green Building Council certifies new and existing buildings using the Leadership in Energy and Environmental Design (LEED) Green Building Rating System
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Chlorine-Free Products: Certified by the Chlorine Free Products Association
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Energy Efficient Products: Certified by the U.S. Government's ENERGY STAR Program
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Organic Produce: Certified by the The U.S. Department of Agriculture's National Organic Program
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Renewable Energy: Certified by the Center for Resource Solution's Green e-Certification Program
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Wood Products: Criteria set by Forest Stewardship Council; certified by Scientific Certification Systems and Smartwood
International Certification
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The European Union Eco-Label Program encourages businesses to market products and services that are kinder to the environment to European consumers
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Canada's EcoLogo Label program certifies products from the United States and Canada in more than 120 categories
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Germany's Blue Angel program provides ecolabeling for a wide variety products
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Scandinavia's Nordic Swan allows companies to apply for an ecolabel in more than 66 product categories
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Japan's EcoMark Program provides product certification and ecolabeling for several product types
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Taiwan's Green Mark and Energy Label programs provide certification and ecolabeling for green and energy efficient products
Ecolabel Resources
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The Global Ecolabelling Network is a nonprofit association of third-party, environmental performance labeling organizations to improve, promote and develop the "ecolabelling" of products and services
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The Collaborative Labeling and Appliance Standards Program (CLASP) is an international organization that helps broker national policies for energy efficiency standards and labels for appliances, equipment, and lighting products
Learn more about Green Marketing.
Practice What You Preach
The most successful green businesses don't just sell the green lifestyle. They live it. Selling green means being green, and this helps build your brand and image as socially responsible. Before you start your business, consult the following resources:
Case Studies and Examples
Companies known for proactive environmental policies can garner favor from customers, employees, regulators, the media and others. Because of their reputation, these businesses are able to reap benefits such as reduced pressure from activist groups and the media, increased ability to attract and retain high-quality employees, improved community relations, enhanced brand image, stronger customer loyalty, and increased appeal to socially responsible investors and portfolio managers. Here are just some of the companies that are known for being environmentally proactive.
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Ben & Jerry's sustainable business practices have always been a key part of its corporate image and its economic success.
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Whole Foods Market, which was founded in 1980 as one small store in Austin, Texas, became the world's leading retailer of natural and organic foods by remaining true to its original commitment to stringent quality standards and sustainable agriculture.
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Patagonia, whose mission statement includes using business to inspire and implement solutions to environmental problems, has parlayed this commitment into a successful brand of outdoor clothing for customers who care about the environment.
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GE Ecomagination. It's no mistake that even though only a limited number of customers can purchase the 17 products featured in its Ecomagination initiative, such as jet engines and locomotives, GE's advertising campaign is aimed at the general public. Why? To build trust in GE's brands.
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McDonald's successfully changed its packaging to limit environmental impact and went on to receive well-publicized recognition for its efforts from organizations such as the Audubon Society, Conservation International, Keep America Beautiful, the National Recycling Coalition and the Environmental Protection Agency.
Join Industry Partnerships
The U.S. Environmental Protection Agency (EPA) sponsors a wide variety of industry partnership and product stewardship programs that aim to reduce the impact of industrial activities on the environment. Joining one of these programs helps you connect with others in your industry, grow your brand, and protect the environment and natural resources.
