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Environmentally friendly products are increasingly in demand. Learn the benefits of starting a green business and get inspired by eco-friendly business ideas.
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Global attitudes toward the environment have changed over the past decade, with research showing increasing consumer interest in products and services from eco-friendly companies. In other words, it’s a good time to start your own green business—or pivot your existing business to embrace more sustainable practices.
Here’s an overview of the benefits of starting an eco-friendly company, plus sustainable business ideas to help you get started.
A green business is a business that prioritizes environmental sustainability and has a minimal negative impact on the environment. This can include businesses that try to address environmental issues and that offer more sustainable alternatives to popular goods and services.
For example, an energy company that installs solar panels to help customers reduce carbon emissions, an apparel company that makes bags and footwear out of sustainable materials, and a shipping and fulfillment provider that uses sustainable practicesto decrease its carbon footprint can all be considered green businesses.
For many eco-conscious entrepreneurs, earning money while protecting the environment is a good reason to start a green business—but eco-friendly companies can also enjoy distinct reputational and financial benefits. Here’s an overview:
A 2023 PDI Technologies report found that 74% of US consumers care about the sustainability of their products, and that 68% of consumers are willing to pay a premium for eco-friendly products. This means eco-friendly businesses can benefit from an improved brand reputation—even if they can’t offer lower prices than less sustainable options.
This attitude is even more pronounced among younger consumers, indicating that a preference for environmentally friendly practices will increase with Gen Z’s buying power. The same survey found that among Gen Z, 91% want to buy from sustainable companies.
Sustainable business practices can also reduce operational costs. For example, Forbes observes that eco-friendly practices like using energy-efficient appliances and light bulbs and upgrading building insulation can improve energy efficiency and reduce overall energy consumption, helping you save on utility costs.
Green practices may also minimize material costs by reducing waste, and allow businesses that achieve minimal waste to save on disposal fees.
Sustainable businesses can reduce their exposure to some risks, providing a long-term competitive advantage over their peers. For example, businesses that reduce energy costs or rely on renewable energy sources are better positioned for an energy future in which fossil fuels are more scarce and expensive. Adopting a sustainable business model can also insulate you against future regulatory actions targeting unsustainable packaging, shipping, and production practices.
Whether you’re starting a new eco-friendly business or transitioning your existing company to greener practices, your ideas should both focus on sustainable products or services and identify areas for environmental improvement. These business ideas for eco-conscious entrepreneurs can help get you started.
Starting a second-hand retail business that resells used goods can help you earn money while reducing waste. Consider starting a secondhand shop in your local community by accepting donations or selling items on consignment. You can also start a secondhand ecommerce business by creating a website to sell items like used clothing, furniture, and household goods.
Sustainable event planning means helping eco-conscious businesses and community members host parties, fundraisers, or corporate events that align with their values. As a sustainable event planner, you develop relationships with eco-friendly catering services, cleaners, and décor providers in your area to ensure your events are environmentally conscious and have a minimal carbon footprint.
You can also consider warehousing event items like candle holders, serveware, and chalkboard signage and renting them out for a second income stream, eliminating the need for hosts to purchase new materials.
Green cleaning businesses provide professional cleaning services using reusable and eco-friendly cleaning products. You can offer green housekeeping services to businesses, individuals, and short-term rental operators who want to maintain their establishments while reducing their environmental impact.
Eco-friendly beauty businesses provide organic and eco-friendly makeup and skin care products. You can sell eco-friendly products from a brick-and-mortar storefront, online, or at pop-up events like local farmers markets or craft and gift fairs.
If you’re passionate about gardening, start an eco-friendly garden supply shop and sell green products like organic fertilizer, native plants, and seeds. You can also offer educational classes or workshops to help customers use sustainable methods to create beautiful landscapes or grow their own food.
A solar panel installation business helps companies and individuals reduce carbon emissions and cut energy costs. Solar panel technicians install energy-saving panels on rooftops and in open spaces like parking lots and fields.
Sustainable fashion businesses source and sell products made from recycled materials (like plastic water bottles or recycled textiles) or renewable, raw materials (like bamboo and hemp).
If you already run a retail business, make it more sustainable by starting a buyback or recycling program. This way, your customers can return used items in exchange for coupons or store credit. Alternatively, you can resell the used items or salvage fabric and materials to create new items.
Green pet supply businesses sell organic pet food, sustainably sourced and produced items like collars, beds, and leashes, and environmentally friendly pet cleaning products to eco-conscious animal lovers. You can sell these products at local markets, online, or from a brick-and-mortar storefront.
If you have a green thumb, start a landscaping company that helps customers find sustainable solutions for their properties. Depending on the ecosystem, you might design drought-tolerant landscapes (also known as xeriscaping), build rain gardens, or create a pollinator habitat with native plants.
Starting a composting business lets you earn money by diverting waste from landfills. Consider offering a free food waste dropoff service and selling nutrient-rich compost to businesses and individuals. Alternatively, offer to pick up compost materials for a nominal fee or earn money helping individuals build systems for composting food waste at home.
Green gift shops sell sustainable products—from beauty supplies and apparel to home goods and décor. If you have an eye for a swoon-worthy gift, consider curating a sustainable collection and selling items online or in person.
Ecotourism businesses help customers find and book travel experiences that minimize negative environmental impacts, facilitate learning about the local ecosystems and culture, and offer the opportunity to assist with conservation projects.
If you’re familiar with a particular region or an eco-friendly vacation activity (like bike touring or hiking), start an ecotourism business that matches eco-conscious customers with unforgettable travel experiences.
Green business consultants help environmentally conscious businesses assess their environmental impacts, develop strategies to reduce negative outcomes, and support implementation. Green business consultants can also help companies target a net positive impact on the environment.
For example, you might help a food production company pursue regenerative farming practices or support a software-as-a-service (SaaS) company in donating a percentage of its profits to an environmental organization.
Green building companies use sustainable construction materials and embrace building practices that reduce carbon dioxide emissions. Many also specialize in designs that improve indoor air quality, energy efficiency, and access to natural light. If you’re a builder, contractor, or architect, start a green building company that targets eco-conscious consumers and improves the sustainability of your local built environment.
If you’re looking for green business ideas to get started, consider reselling thrifted clothing, starting a green housekeeping business, or—if you have access to capital—an eco-friendly skin care brand.
An eco-friendly business practice is any way of completing a core business function that reduces that business’s negative impact on the environment.
While traditional business models aim to maximize profits irrespective of environmental impacts, green business models balance the twin goals of profit generation and environmental sustainability.
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