Editor's Note: This is the second installment in a two-part series on how to write a green business plan. In case you missed it, you can read part one here.
Business plan success in today's multi-trillion dollar green economic revolution is determined by how successfully it fulfills the customer's search for products that align value with values.
If you are a retail business, then your business plan must align with the millennial generation's focus on sustainable business practices in deciding what companies to buy from and who to work for. The business plans for businesses that sell to other businesses must articulate how their bids competitively satisfy corporate America's green supply chain procurement criteria. Every business plan must address a company's sustainability practices for managing commodity price volatility and supply chain disruptions impacted by climate change.
Part one of this article series focused on the elevator speech. I chose to talk about the elevator speech first because a business that can compellingly explain its opportunity in three sentences has the vision for crafting a winning business plan that's attractive to investors, work associates and customers. This second article outlines the steps for writing a successful green business plan.
A well-executed business plan answers through documentation the questions, issues and doubts that potential investors, work associates or customers will have about your company. This should include information about the company's strategy, human resources requirements, capital requirements and product competitiveness. The following is a list of issues that every business plan must address through realistic documentation:
In terms of investors, they increasingly recognize that successful companies win customers by delivering on both value and values. These investors also recognize that corporate America is greening its supply chain, and they search business plans for evidence that a company can competitively bid on contracts that now include sustainability and corporate social responsibility bid criteria. Investors are risk adverse to commodity price volatility, supply chain disruptions and increased government regulations. A business plan that sustainably mitigates these risks has a competitive advantage that will be attractive to investors.
Then came the vision of companies like SolarCity, SunRun, Clean Power Finance and SunPower. They developed a mass-marketing business plan for solar. Their paraphrased elevator speech to homeowners was, “Buy solar for zero down and immediately lower your electric bill.” To investors their elevator speech was, “We will build a $100 billion industry selling electricity from rooftop solar systems that will lower or eliminate a homeowner's electric bill.” Those are engaging and compelling elevator speeches! Imagine the business plan that was used to raise the funds to realize that vision.
That is the challenge for every business plan. Most of us are not Elon Musk, founder of Tesla and chairman of SolarCity, with a disruptive vision. But whether your business is an auto body shop or a Fortune 500 corporation, the path to revenue growth is through delivering disruptively-priced products that solve “in me, on me and around me” problems. A compelling green business plan that is price competitive while also meeting the sustainability expectations of your target customers creates a tremendous opportunity for raising capital, attracting talented human resources and winning customers.
Bill Roth is an economist and the Founder of Earth 2017. He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017
Bill Roth is a cleantech business pioneer having led teams that developed the first hydrogen fueled Prius and a utility scale, non-thermal solar power plant. Using his CEO and senior officer experiences, Roth has coached hundreds of CEOs and business owners on how to develop and implement projects that win customers and cut costs while reducing environmental impacts. As a professional economist, Roth has written numerous books including his best selling The Secret Green Sauce (available on Amazon) that profiles proven sustainable best practices in pricing, marketing and operations. His most recent book, The Boomer Generation Diet (available on Amazon) profiles his humorous personal story on how he used sustainable best practices to lose 40 pounds and still enjoy Happy Hour!