Editor's Note: Today's guest blog on how to turn a green business idea into a business comes to us from Tom Szaky of Terracycle. In 2001, Tom, a Princeton University Freshman, founded TerraCycle in hopes of building an eco-capitalist company built on waste. After winning countless business plan contests, Tom dropped out of Princeton to pursue his dream of founding the world's most environmentally friendly company. Seven years later, TerraCycle's eco-friendly products have received a myriad of social and environmental accolades and are sold at major retailers like The Home Depot, Target, Wal*Mart and Whole Foods Markets. TerraCycle's business plan and products made from waste received a Zerofootprint Seal of Approval, won The Home Depot's Environmental Stewardship Award twice and recently won the 2007 Social Venture Network Innovation Award. Tom is a leader in the green business world and we are so appreciative of his sharing some of his ideas here on Celsias. Keep an eye out for future posts from Tom!
Starting a "green" company can present a host of challenges and obstacles that every entrepreneur may not be able to stomach. I feel as though before you decide to make a plunge into this big abyss you must first decide what is your passion. What is your drive? Do you have that inner voice that is going to take you through when everything around you is saying to give up? If that does not hold true for you, I believe you should take some time for that search before reading the rest of this article. I am going to spell out a simple formula for turning green to green.
1. What is the product or service that you would like to offer?
I would like to advise everyone out there to please stay away from "green" if it is some type of 2-cents marketing approach that you would like to use to sell more of what you have to offer. Remember that what is done in the dark will come to light. Once you are branded with mistrust it will be a hard crawl to come back. If you have a genuine product or service that will help our environment, then that is your first step. Please do not make this a perception it has to hold true.
2. What is the market for the product or service?
Do not assume that every person that cares about the environment is going to run out and grab your product. Also don't forsake the general population that may also take a liking to what you have to offer. Take your time and break down the categories of consumers, in general, that will be able to benefit from what you have to offer
3. Business Model
Everyone take a couple of minutes to really digest the affirmation that I am proclaiming. It will always take more than a great idea to make a business work. Business is a structure that has different functions that must interact and work together for the common goal of what needs to be accomplished. You want to have people that understand marketing, finance, law, product development and a host of other things. I know that being in the start-up phase that this could be a struggle. Just be mindful and remember to keep these items on the horizon.
I know that most of you are saying "oh wow Tom, this sounds just like a general blog about starting a business". I hate to be the bearer of bad news, but starting a green business is no different that any other business. One great advantage that you have is leading a "green" pr program that will allow you to take the world by storm. I think I will have to save that for the next post, though. To green be the glory!
