January 05, 2010 - Greenbang - If you're a
clean technology entrepreneur who was happy to say "Good riddance"
to the dreary business climate and crimped credit of 2009, we have
bad news and good news for 2010.
Bad news first: the coming year probably won't
feel much different for you than the previous one. According to
Discover's latest Small Business Watch
index, more than half (52 per cent) of small business owners
believe conditions will continue to grow worse for them over the
next six months, while another 24 per cent believe things will stay
about the same. More than half (51 per cent) also plan to cut
business development spending between now and July, and 26 per cent
will make no changes in investment.
In other words, most entrepreneurs aren't expecting the money
spigot to open up and start flowing more freely anytime soon.
Now, the good news: There are ways to grow your
clean technology business even in the current economic climate,
especially if you've got a consumer-friendly product that's in
hand, rather than still in development. Here they are:
- Find ways to do more with
less. You can apply this strategy almost anywhere in your
business: use less heat by turning down the thermostat, use less
ink by printing less and emailing more, use your phone service less
by using Skype more, use less petrol by driving less and taking the
bus - or walking - more, use less electricity by shutting off
computers and lights whenever they're not in use. Every little
strategy might be just that - little - but together they can add up
to a significant cost savings … money you can better use elsewhere
in your business.
- Target cost-conscious
individuals. Just as you're trying to cut costs, so are
most other individuals - whether they're homeowners, students,
other business managers or shop owners. Chances are they'll listen
if you can offer them a mass-market-priced, easy-to-install-and-use
device that can reduce their energy, gas or water expenses in a
short time period.
- Branch out into developing
markets. The world's developing economies - places like
China and India - are bouncing back a bit more quickly from the
downturn than other markets, and they're home to billions of
potential customers. Again, the key is being able to offer them an
inexpensive but beneficial technology that pays off quickly.
- Take advantage of available
government funding. When the big banks stopped lending,
the world's governments stepped in with billions in economic
stimulus funding. Much of that money not only remains to be spent,
but is focused on clean and green technologies, as well as on small
businesses. US entrepreneurs, for example, should check out
FedConnect or the
US Department of Energy's funding opportunities for renewable
energy.
- Keep it simple. Once
you've found a business strategy or target market that seems to be
working for you, stick with it. Trying to be all things to everyone
takes up too much personal energy that can be better focused on
your core area of expertise.
- Team up with local
agencies. Local government agencies will also keep feeling
the pinch as their tax revenues continue to decline. Approach them
with a quick-return-on-investment way to cut their energy costs or
other resource consumption, and you're likely to find an audience
ready to write you a check.
- Localise your supply
chain. The closer your suppliers are, the greener your
business can be. Plus, being able to meet face-to-face with vendors
who live and work in the same place you do makes for stronger and
more productive business relationships.
- Disaster-proof your
operations. If the financial crisis of 2008 taught us
anything, it's that it's best to be prepared for drastic changes
and Black Swans. That'll remain true in coming years, especially as
climate and energy problems worsen. Plan now for ways to keep your
business as resilient as possible, no matter what the circumstance.
How, for example, could you continue working if you were to
experience flooding akin to what happened in the Lake
District last autumn? Or how could you keep running if
you lost a major client? Whatever the possible problem, have
a backup strategy ready.
- Go as green as
possible. The problem with the shift toward renewables is
that so much of the underlying industry, whether it's photovoltaics
factories or wind-turbine manufacturers, is still dependent on
fossil fuels. Finding ways to power your operations as sustainably
as possible, even making an effort to go off-grid, will give your
business an advantage … not only now, in terms of "green cred," but
in the future that's likely to arrive with ever-rising energy
costs.
- Build a community.
The "go local" movement started largely with food, but is expanding
into new areas now with more and more Transition Town projects
under way. As that movement's "Cheerful disclaimer" notes, "(I)f we
wait for the governments, it'll be too little, too late; if we act
as individuals, it'll be too little; but if we act as communities,
it might just be enough, just in time." Make your business part of
a community - of suppliers, of customers, of local residents in
general - and you can help future-proof yourself more than the
competition.