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Challenges for the New Green Entrepreneur

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With the release of the Al Gore Documentary "An Inconvenient Truth" in 2006, more consumers than ever are aware of the environmental impact their dollars spent can make. Whether they choose to support a big box store that employs overseas labor, or small, local businesses that create a much smaller environmental footprint and support sustainable initiatives, the general consumer now knows they are voting with their dollar. For business as usual, or the support of a greener planet. But that doesn't mean that starting a green business is easy; no business endeavor ever is. So if you've decided you want to go into business for yourself, but you want that business to be environmentally aware, what challenges might you need to overcome?

Lack of experience. Many people want to do something better for the environment, but don't necessarily know how to go about it. You'll need to find the right niche for your product, but make sure you spend time experiencing other offerings within that nice, or your burgeoning business may never get off the ground.

Insufficient funding. There are many options for funding small businesses these days, whether through private investment, corporate or government grants, or loans from banks or credit unions. But green businesses have a larger hill to climb than traditional businesses when it comes to launching their product. With stricter quality standards, and varying definitions of what makes something 'green', you'll have to jump through a series of hoops before you're able to tout the environmental friendliness of your offering in a way that will impact the marketplace. Make sure you research the costs of green business in advance of taking on investment. Incorporate these additional R&D costs into your business plan, and you'll save yourself a ton of stress and heartache when you hit the inevitable difficulties you'll face in bringing your product to market.

Skepticism in the marketplace. 'Green' is in. Which also means there's many impostors, looking to capitalize on the sexiness of environmentally conscious business to gain a foothold in their industry. Consumers looking to buy green do their homework, and will be more than willing to challenge your green assumptions. Be clear that your green offering is one the market is clamoring for, and that you've done your due diligence to back up your claim. If green is nothing more than a marketing ploy, you'll hear it from your customers, and see it in your dwindling bottom line.

Successful marketing. You may find that traditional marketing techniques are not enough, especially on the tight budget of a new business. You won't be able to compete with the marketing spends of larger companies, especially those that don't spend the extra cash on environmentally conscious product lines. Be prepared to roll up your sleeves and get to work. That may mean going to where the customers are. Farmers markets. Organic/fresh supermarkets. Local non-profits. Green technology conferences. If you don't think you have the energy or ability to be places where environmentally-aware consumers are shopping, and you can't foot the bill to generate global payment reviews of your services, you may want to rethink your convictions.

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