Going Green
November 11, 2007
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Going Green
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Q:
What do you think of tapping into this green business trend? I am
starting a business and think it makes sense to go green, but is it just a fad
that I might regret? -- Stuart
A: No, I don't think it is a fad,
and yes, I think it makes a lot of sense.
In fact, green business is an area of incredible opportunity and growth right now. (A green business, for our purposes, is a business that either sells environmentally-friendly products and/or that runs its business in an eco-friendly manner. These are also sometimes called sustainable businesses.)
Now it is true that the green market is currently a bit of a niche market, but what a niche it is! It is exactly the sort of market most small businesses yearn for: People willing to put their money where their values are. A recent study by the Natural Marketing Institute found that 23% of the U.S. adult population makes up the green market given they have a "profound sense of environmental and social responsibility." That's 50 million people folks. No, there is no shortage of people who want to buy green.
That is certainly what Mitch Rofsky has found. Not only has he created a great sustainable business, but he did so going up against the giant in his industry -- The Automobile Club, i.e., AAA.
Rykofsky is the President of the Betterworld Club, a green alternative to Triple A. While the Betterworld Club offers the same services as AAA (at a lower price) -- 24/7 emergency roadside assistance and towing, flat tire and lockout service, jumpstarts, and so on -- according to Rofsky, "our company is decidedly far more environmentally friendly and socially responsible than AAA":
1% of the Betterworld Club gross revenues go to environmental cleanup and advocacy
They offer carbon offsets
They offer roadside bicycle assistance
If you own a hybrid car, your fees are discounted
They offer discounts on eco-travel
Domestic partners are recognized and treated as joint members
They offer a lighthearted, useful e-newsletter containing consumer advice, environmental information, and member savings: "Kicking Asphalt"
As those great guys at Car Talk say, "Finally, an auto club with decent values." It's no wonder then that the club has an 80% renewal rate and membership is soaring. Indeed, the Betterworld club is leading the pack for auto clubs in this green era.
When I spoke with Rofsky last week, asking him what it takes to create a successful green business, he was unequivocal in his enthusiasm for the business model. Not only is it a growing market, but for people under 30 he said, the environment is easily the preeminent issue. As such, "There is no doubt that in every marketplace there is room for socially responsible businesses," he said.
According to Rofsky, the key to creating a successful green business is to differentiate your business, and then let people know that you are different. That means
Have a niche. Finding a way to express your passion for the environment in a business way can be both creative, and eventually lucrative.
Advertising and marketing in the right places. "You have to advertise in places where people who see what you offer will want it." For the Betterworld Club, that means places like the Sierra Club magazine, Air America radio, and NPR's Car Talk.
Walk Your Talk. Rykofsky stresses that your business must reflect the values it espouses.
Don't forget it's still a business. Your first job is to break even, and then make a profit. Offer competitive prices and exceptional customer service.
As the
Betterworld Club has shown, one of the exciting things about this new green
world we are all entering into is that you can do well by doing good.
Today's Tip: Want to succeed in your advertising? Then stress "the benefit, the benefit, the benefit." So says Steve Lance and Jeff Woll in The Little Blue Book of Advertising. "There's just no way you can consistently and successfully sell without telling the customer what valued benefit she'll be receiving if she buys your service or product."