Going green: How to cut costs and save the planet

By Joanna L. Krotz

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One of the hottest colors in business marketing these days is bright green. Increasingly, customers prefer brands that use resources wisely and respect the environment.

In a 2007 survey of "green" brands, for example, consultant Landor Associates found that consumer interest in sustainable products has soared, noting "nearly all Americans display green attitudes and behaviors versus a year ago." Plus, customers will now pay a premium to support "green" efforts. Just look at the success of Whole Foods Market, the popular retailer of natural and organic foods.

Going green also has been found to cut operating costs. Home-based businesses can reduce energy bills by as much as 30 percent, according to Energy Star, a government program that helps businesses and consumers conserve energy. Some changes do require investments that will pay over time, such as new energy-efficient air conditioners or windows. But many practices, big and small, have no up-front costs and can still save you money.

Then there’s the compelling argument of securing your future. Small businesses, which operate on slim margins and scant insurance, tend to be hardest hit by extreme weather and climate change. Ski operators, food producers, landscapers, retailers, distributors, and service providers of every stripe face higher costs and slowed sales in the face of hurricanes and global warming.

So while it may be hard to imagine that one newfangled light bulb or a ream of recycled paper actually makes a difference when stacked against the worldwide problems, the fact is that each choice counts.

"When people begin to understand how each decision they make has an impact on an entire industry or supply chain, they will see how even small actions can contribute to change," says Anna Clark at EarthPeople, a Dallas consulting firm that advises companies on using environmentally friendly resources.

Reduce, recycle, reuse

Small businesses can make the shift to sustainable practices much more quickly than can their larger counterparts. So if you start now and promote your new green profile to customers, you can reap the rewards before deep-pocketed competitors jump in.

Here’s a practical menu of ways to go green. Choose those that make sense for you. Just remember: Environmentally focused consumers are now skeptical of talk. You must demonstrate real commitment to earn their trust and dollars.

Step 1: Measure your carbon footprint

Before making any changes, you must figure out how your business consumes resources. Overall, consider your energy and water use, what can be recycled, and the quality of your environment and indoor air.

An energy audit from your local utility is a good place to start. Call and ask for help. Most utilities offer free advice about becoming energy efficient, either on site or via phone. The audit will recommend improvements and ways to reduce costs.

 Tip   Tip: To figure your energy use, try this carbon footprint calculator.

Step 2: Draft a strategic plan

Don’t try to do everything at once. Instead, set up a plan to phase in changes as you have the time and resources. Be flexible.

To reduce costs and “green” your workplace, consider these six ideas.

1. Switch to electronic communications.   Try using Microsoft Office applications or Adobe PDF for all your documents. Use paper only when clients request it. That includes invoices, newsletters and marketing messages, NDAs, proposals, contracts (with electronic signatures or ask clients to print and fax only the last page with the signature).

   You can also opt for online banking, bill payment, and statements.

2. Mind the basics.

   • Use a programmable thermostat that’s set to turn up and down depending on when spaces are occupied.
   • Install timers on lights and electric equipment so electricity shuts down over night, weekends, and holidays.
   • Disconnect equipment you don’t much use to avoid phantom electricity costs.
   • Use high-efficiency light bulbs, such as compact fluorescents. Typically, compact fluorescent lights will cost you 75 percent less to run and last 10 times as long.
   • Shop for energy-efficient computers, monitors, fax machines, printers, copiers, and so on. The EnergyStar label is one good indicator.
   • Get annual checkups and check all filters for HVAC systems (heating, ventilating, and air-conditioning) to ensure you’re not wasting money and energy.
   • Replace washers on dripping faucets. One faucet that drips once every second adds up to 2,700 gallons of water per year.
3. Engage your customers.   Retailers, restaurants, coffee bars, caterers, and the like can ask customers to bring their own bags and mugs. Then, reward such customers with discounts or perks.
   
   
4. Don't be a technology hog.   An Energy Awareness Campaign, sponsored by software solutions provider 1E, found that more than 31 million of the country’s 104 million office computers are left on overnight. “Across the nation, this adds up to more than $1.72 billion dollars and almost 15 million tons of CO2 emissions,” according to the campaign survey.

   Energy costs run as much as 10 percent of larger companies' technology budgets. Even at a small business, the savings can be significant. Use your computers’ power management and automated shutdown features to conserve energy, and do your part.

5. Harness micropower.   You may be surprised to find how business-friendly renewable energy technology has become.

   Choices range from a small solar device that can recharge your mobile or PDA to microturbines, about the size of a refrigerator, which generate enough power for most small businesses.

   Other options include solar water heaters that can work for laundries or small restaurants, as well as wind and hydropower products.

   For advice on renewable energy for small business, see the National Renewable Energy Laboratory or call your state environmental agency.

6. Recycle technology and peripherals.   You may already be using rechargeable batteries for office electronics because these are more cost-effective. But, eventually, even rechargeables stop working. Instead of tossing them in the trash or an empty drawer, put them to use. Retailers such as Office Depot, Staples, Office Max, Best Buy, and others have collection centers to recycle old devices and batteries. Just drop off what you don’t need.

   Across the country, nonprofit groups have also stepped in to help, such as the Call2Recycle program from Rechargeable Battery Recycling Corporation.

Step 3: Promote your greener business

Once you're on the path to green, let your customers know, whether by newsletter, an e-mail blast, phone conversations, or other marketing channels (billboard on the highway, anyone?).

Also, think beyond simply saving energy or water. You might extend your product line into sustainable versions of what you sell—say, financial services for green businesses if you’re an accountant, or recycled equipment if you’re a technology provider.

One thing's for sure: The market for green products and practices is attracting more and more folding green every day. You may want to go for that kind of green.

About the author   Joanna L. Krotz is the founder of Muse2Muse Productions, a custom content company for business and consumer magazines, newsletters and digital imprints. Krotz has launched marketing Web sites and e-news portals, as well as created magazines and online marketing for a variety of companies. She is co-author of The Microsoft Small Business Kit, a 500-page guide to launching and running a small business.