One of the best pieces of advice I received about starting a business was to make sure you’re doing something that aligns with your interests and values. Whatever your reason for starting a business, building your own company takes time and energy. When you’re doing something you believe in, it’s much easier to get through the stressful moments and all-nighters.
Issues of climate change and sustainability are extremely important to many people right now.
If you’re concerned about the environment and are trying to develop eco-friendly habits at home, here are some ways you can bring those same values into your startup — and even better, they could have a positive impact on your bottom line.
Customers will pay a premium for environmentally friendly brands
Deloitte research has found that customers are not only likely to switch to brands that reflect their values, but they’re also likely to pay more for environmentally friendly products: The company’s green products study found that consumers are willing to pay a 27% premium for sustainable brands.
Conscious consumers mean there are plenty of opportunities for startups doing good for the planet. Here are three possibilities to explore.
1. Get involved in upcycling
If you’re looking for an eco-friendly small business with a relatively low barrier to entry, it’s worth brainstorming upcycling projects – reusing items that would otherwise end up in landfill – which means lower start-up costs.
Compare business credit cards
Consider these business credit cards that offer a convenient, efficient way to separate personal and business expenses and streamline accounting and tax reporting.
Plus, business cards can offer valuable perks like points, cash back and expense tracking tools, giving you more control over your finances and potentially saving you money in the long run.
Ink Business Unlimited® Credit Card
Earn $750 in bonus cash back A circle with the letter I. Earn $750 in bonus cash back after you make $6,000 in purchases within the first 3 months of opening your account Earn unlimited 1.5% cash back on all purchases A circle with the letter I. Earn unlimited 1.5% cash back on all purchases made at your business
Intro: Circle with the letter I. 0% Intro APR on purchases
Purchase: 0% introductory APR on purchase, 12 months.
Balance Transfer: N/A
Normal: 18.49% – 24.49% fluctuation
Ink Business Preferred® Credit Card
Earn 120,000 Bonus Points Circle with the letter I. Earn 120,000 bonus points after you make $8,000 in purchases within the first 3 months after account opening. Earn 3 points per dollar in select business categories Circle with the letter I. On each account anniversary, earn 3 points per dollar on your first $150,000 combined spend on travel, shipping, internet, cable and phone services, and advertising purchases on social media sites and search engines. Earn 1 point per dollar on all other purchases. There is no limit to the amount you can earn.
Intro: Circle with the letter I inside. N/A
Purchase: N/A
Balance Transfer: N/A
Normal: 21.24%-26.24% fluctuation
Some upcycling business ideas include:
Sustainable fashion: If you have a sense of design and are good at needlework, you might be able to make something stylish out of clothes that people are throwing away. A report by Coherent Market Insights predicts that the sustainable fashion market will grow from about $8 billion in 2023 to more than $33 billion by 2030. Second-hand furniture: Reclaimed furniture requires more space and different expertise than clothing. But people need furniture just as much as they need clothes, and the market for sustainable and unique items is growing. Repurposed plastic creations: From lamps to flower pots, tiles to furniture, there are endless ways to create sellable items from old plastic. Online selling platforms such as Etsy can help you find a market for your products. Inspirational startups to check out: Zero Waste Daniel
As the name suggests, the New York-based clothing brand is committed to sustainable, stylish designs that don’t waste a single thread, using post-consumer waste and other materials that are hard to recycle.
2. Ecotourism
Nearly 70% of people surveyed in Trip.com’s 2022 Sustainable Travel Consumer Report said they are actively seeking out sustainable travel options. People are concerned about greenhouse gas emissions and tourism’s impact on the local environment. You could capitalize on carbon concerns by launching ecotourism projects closer to home. For example, there might be demand for yoga retreats, eco-glamping, and unique hiking activities.
Thinking internationally, you could set up a green international travel agency that introduces eco-friendly hotels, tours and experiences to your customers. There’s a lot of greenwashing going on. If you have connections in a particular country or can help visitors understand a particular culture, this is a good place to start.
Inspirational startup to watch: Staze
Staze is a hotel booking site that helps you find hotels that are serious about reducing their emissions. Let’s say you’re going to London for a few days. The site will tell you the carbon footprint of your stay. Not only that, but they’ll offset your emissions through projects like tree planting.
3. Green Finance
If you have knowledge or experience in banking, insurance, fintech, lending or investing, you can turn those skills into something green. One way is by helping legitimate green businesses access the capital they need to grow. Another is crowdfunding loans for solar panel projects. Or climate-focused insurance, carbon accounting, reforestation, etc. You could also help start-ups get access to green business bank accounts.
The key is to match your financial skills with a solid understanding of the environmental problems and challenges you need to solve. Don’t be afraid to look for partners who can fill knowledge gaps or collaborate on complementary projects.
Inspirational startup to watch: Treecard
Treecard originally started out issuing wooden debit cards and is now an app that rewards you for things like walking instead of driving and supporting ethical businesses.
Conclusion
Whatever your industry, there are hundreds of ways to launch an eco-friendly startup, but don’t assume your company will be successful just because of its green credentials.
You need to do your research to understand the competition and customer demand levels. Create a business plan and draw up a financial plan. Consider how you will build your brand and reach customers.
Make sure you build eco-values into every part of your business from the start, and you’ll avoid greenwashing. Consumers quickly spot that kind of false branding, it undermines your credibility, and it doesn’t actually help the planet.
Note: Our top-rated cash back card offers 0% introductory APR through 2025
This credit card isn’t just good. It’s so good that our experts personally use it. It features a long 0% introductory APR period, up to 5% cash back rates, and no annual fee. Click here to read our full review for free and apply in just 2 minutes.
