In a world that is facing increasing issues related to climate change, pollution, and worsening air quality, there is no wonder why so many are turning towards eco-friendly products and services to lessen their environmental footprint. Naturally, the market for sustainable products and services has boomed over the last decade, with many established firms grasping this opportunity with the creation of environmentally conscious lines, and a significant increase of start-ups revolving around sustainable products. The passion behind these new organizations, consolidated with innovative ideas that are backed up with today's technology has created some outstanding products and services, that are led by driven entrepreneurs that are dedicated to their cause. The potential success of this market is promising, with a reported two-thirds of consumers reporting that they are willing to spend more on sustainable products, and the industry has twice the growth of its counterparts.

Then why are so many sustainable startups failing?

It's sad but a reality. Many eco-friendly-oriented start-ups do not reach the success they strive for, though they have the potential. This can be explained due to several factors, beginning with consumer buying capacities. Sustainable products naturally have a higher price point than their counterparts due to minimizing the environmental implications of their operations. They do not benefit as much from cheaper labour or economies of scale that traditional firms strive for and instead tend to keep production more centralized, have ethical practices, and engage in more costly production methods. This is not an aspect that should be greatly compromised but makes competition in the market harsh. This element, paired with a struggling economy and younger consumers facing increasing housing and food expenses lead to consumers choosing to buy the standard option, even though they value eco-friendly products. Studies show that while 65% of consumers want to support more eco-friendly brands, only 26% do so, and a lot can be attributed to affordability. Another factor to consider is the challenges that all start-ups face, which leads to around 90% of start-ups failing. These challenges can be summed up as a lack of funding and cash flow, being in the wrong market, lack of research, lack of proper marketing strategies, having bad partnerships, or not being equipped with the skills and expertise needed for the field. These challenges are heightened for environmentally friendly oriented brands, on top of the trouble of piercing markets that are dominated by firms offering affordable, high-quality, and convenient products. So what does this mean? Do we give up on creating businesses that aim to save our planet? No! While these obstacles are daunting, they are mere obstacles that can be overcome. With careful planning, your green idea can still become a successful reality. Here are some of the top things to take into consideration to ensure the best chances for business success:

Ensure the problem is known

The decision to purchase an item or service that is eco-friendly, sustainable, more ethical, or of the sort is made when the buyer is conscious of the problem at hand and its negative consequences. The purchase will translate into the buyer feeling they have made a difference in the world by choosing this product over another and will recognize the impact they have. This essential factor is why your business needs to ensure that the problem you are trying to tackle is publicly known. For instance, the average person may know the negative effects of plastic waste and will feel confident about buying an item that uses less plastic, but may be more hesitant to buy battery alternatives as they are not aware of the harmful chemicals that batteries produce that pollute the environment, and therefore will not compromise on their habits. This effect, combined with social pressure and the domino effect that drives sustainable buying habits, is why there needs to be a buzz about the issue you are trying to tackle. If this is not a challenge you are facing, you've saved yourself from some extra effort. If it is, this is a great opportunity to benefit from a first-mover advantage in your niche market and be a leader in educating the public on this lesser-known issue. The extra costs and resources necessary to achieve this will pay off through the creation of a more established brand, more thorough research linked to your product, and the chance to be a pioneer in addressing your target problem.

Market with purpose

Marketing sustainable products is a challenge, as there are so many routes to take when deciding how to appeal to your audiences. As always, knowing your target audience and their preferences is the first step, but the second is to see how you can integrate the sustainable aspect of your brand to find the right appeal for your target demographic. For instance, there is a more emotional appeal, which focuses on that feel-good sensation that one gets when purchasing an eco-friendly product, and the positive experience linked to knowing they are making a difference. This works best with an audience that already cares about the environmental issue at hand. The marketing should also handle the idea of guilt carefully, as it can bring about more feelings related to accountability towards the negative effects of their actions, but if pushed too far, can bring about emotions like frustration, fear, or anger, turning the customer away entirely. Now, there is the more rational appeal, that focuses on presenting the facts and sequence of events that detail the real-life effects of the traditional alternative versus your eco-friendly option. Using numbers, statistics and real-life examples is the key to leveraging the rational appeal. The presentation of the outcome of one's actions and making the consequences less abstract leads the consumer to feel more certain about their purchasing choices and in turn, educates them about the issue at hand. For either approach, social marketing practices should be in place. For instance, if your demographic is a younger audience, a more positive framing will be more effective. It should also be known that eco-friendly products are often associated with femininity, and thus depending on the nature of your product, finding a way to neutralize this component may broaden your reach and present the product with less bias and preconception.

Strive for Quality

Offering quality products and services is an obvious move for any business, but even more essential for eco-friendly items, especially for essential items like cleaning products, food, and clothing. When a consumer decides to switch from their habitual brands to a more eco-friendly one, they are taking a risk of not being able to ensure its quality, while also paying a higher price. If the product fails to deliver on any of its standards, even by a small enough margin, the consumer will likely switch back to their trusted alternative. Surveys show that most people associate sustainable products with lower quality, which is not always the reality of course. This emphasizes the importance of your product or service to deliver a high-quality experience on the first go, to deter users from switching back to the array of already trusted brands, while also justifying the potentially higher price point. Quality also means excellent customer service, and creating a positive customer experience throughout their whole shopping journey. A responsive brand that ensures customer satisfaction is also key, and ensuring clear communication of your business operations, promises and future endeavors creates strong B2C relationships. Another aspect to consider is the accessibility of your product, whether it's sold online or in person, as the timeliness and accessibility of an essential product play an important role in the quality of your product and services.

Don't Shy Away from a Partnership

Look, we get it. Owning and operating 100% of your business and nurturing it to success independently is a wonderful feeling, and not impossible. However, with all the obstacles a sustainable brand may face, the trade-off between staying independent while bearing higher costs, or choosing to engage in a partnership, may entail saving your business. With so many startups failing due to running out of money, splitting costs or benefiting from existing infrastructure can mean keeping your business alive for the extra year it needs to realize real success. A bad partner can also result in the failure of a startup so this is why finding the right strategic partner to assist you on your journey is essential. Partnerships can resemble a joint venture, creating a product or service under another brand, supply chain partnerships, local retailers, or an endless possibility of other arrangements that would suit your needs. The benefits of such a business move can also mean accessing another business's existing customer base, their operating resources, forgoing fixed costs, and benefiting from more points of entry into the market. The key is to identify partners that share your sustainable values, are transparent in their practices to ensure your product is maintaining its desired level of environmental impact, and be diligent in the details of your arrangement. Do not rush into any deal, but be open-minded to the possibilities a strategic partner may offer, and how going with this alternative route can mean creating more environmental impact and good to the world than if you were to stick it out on your own.

Take a Step Back: Is my business Needed?

Entrepreneurs come up with some truly amazing ideas that are born out of pure passion and good intent, and when you have such a powerful drive, it may be hard to face some harsher realities as to why you should not pursue this amazing idea. The sustainable product industry is currently thriving with new technologies and innovations birthing novel solutions to environmental problems, but not every solution is meant for success. The first thing to consider is how saturated the market is for a specific solution. If the idea is already done before and is done effectively, a new entry to the market may be fruitless, even with a slightly different approach. Similarly, the size of the impact of your product on the cause at hand is important, as higher prices and less convenient items with marginal impact on the environment are harder to sell. But one of the most important aspects of this industry is to ensure our new business ideas are not paradoxical. A huge contributor to climate change and pollution is overconsumption, and often the best solution is to simply consume less. Creating new products means in return creating more carbon emissions, increasing resource consumption, and increasing waste. Even if your production's negative impacts are at a fraction of those of your competitors, you are still contributing to the problem if your business can not beat your competition. This is where entrepreneurs need to do their due diligence with thorough research and market analysis to decide objectively if their new venture is needed if it will greatly benefit the planet as an alternative, and if it cannot be substituted by simply consuming less. If your business idea does not meet the above criteria, but you are still determined on creating an eco-friendly business, consider a more experience-oriented organization, focusing on the intangible product. A service-oriented business that does not feed into materialism might have far fewer negative externalities and promote greener activities or essential services while remaining profitable and promoting a circular economy. Overall, deciding against your initial business idea is a tough call, but pivoting your strategy may allow your eventual firm to flourish and have an even greater impact on the issue at hand.

The success and acceptance of environmentally friendly businesses are crucial for our world's well-being, and can in turn influence our society into adopting more sustainable practices into our everyday life. This is why entrepreneurs need to be as careful as ever when creating new start-ups with an environmental cause, as they could not only create a positive impact but also a precedent and reputation for the whole industry. The trend of businesses taking corporate social responsibility more seriously and the increased incorporation of non-profit organizations into their business practices is uplifting to witness and should be encouraged and pushed by consumers and stakeholders. In the end, we are rooting for the success of these brilliant green ideas that can one day help save our beautiful planet!

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