Green Options

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There are many ways in which entrepreneurs and ecopreneurs are similar. Both embrace failure and are idea driven, innovative, creative, risk tolerant, flexible, adaptable, freedom minded and independent. Perhaps you could add a few more defining characteristics as well.

However, ecopreneurs go beyond organic, beyond compliance to laws and regulations (or redefine them), beyond consumerism, beyond minimum wages and beyond the free market economy to conduct business. Entrepreneurs become ecopreneurs when their spirit, boldness, courage and determination not only transform the landscape but coalescence into a movement to transform global problems into opportunities for restoration and healing. After talking with thousands of ecopreneurs over the past decade, we’ve discovered quite a few distinguishing characteristics reflected in the chart to the right. Additionally, ecopreneurs seem to be more focused on cooperation and collaboration than competition as the means to get ahead in the world. That’s why so many form innovative partnerships or creative interdependencies with fellow ecopreneurs — just as in nature.

The most progressive ecopreneurial enterprises address more than one of the many challenges facing us. Their business might foster fair trade relationships (promoting economic justice and equity), generate more energy from renewable energy sources than it uses (severing our addiction to fossil fuels) and even serve local, seasonal, vegetarian, and organic meals to those who work in the business.

When did we become “consumers”? How did it seep into our mainstream culture so that it’s commonplace to refer to each other as consumers?

It’s pretty clear why people over the last several decades started referring to each other as consumers: wealth and greed. Today, about two thirds of our economy is based on “consumer spending.” If we stop spending, our economy will likely fall into a recession, or worse. While our standard of living (measured in possessions) has never been higher, the quality of our life is not what it once was. Until recently, Americans have enjoyed an economic boom like no other, though it’s hardly shared among all citizens. But now, our spending habits have seemingly caught up with some of us.

We’ve discovered that owning lots of stuff often gets in the way of achieving a satisfying and fulfilling life. As a result, we’re revisiting our values and reorganizing our life around better meeting them. When we do purchase something, it’s as a “conserving customer”. If we own a business, perhaps as an ecopreneur, we offer products or services that seek to make the world a better place. Our enterprise, either for-profit or non-profit, is a means by which to create the changes we seek in the world.

This is the final post related to Strategies of Abundance for green business ecopreneurs. The first two addressed how banks have a stranglehold on our lives (Part 1). Part 2 addresses the KISS principle (keep it small stupid), relocalization movement, and thriving on natural capital.

Following are a few more strategies we’ve employed, like many other ecopreneurs.

Strategy # 5: Enough Is Enough

A key facet for many small business ecopreneurs is the recognition of living within our ecological and financial means. By exiting the rat race and crafting our own business at a level we can manage, we can commit ourselves to our Earth Mission. A key step, however, is to let go of the idea that we must own a new car or new stereo, go on lavish vacations or in myriad ways keep up with the fictional Joneses. Many Europeans have known this for years.

Strategy # 6: Be Creative and Innovative

“Of three precious resources in life — time, money and creativity — the only unlimited one is your creativity,” writes Ernie Zelinski in The Joy of Not Working. “Make creativity your number one resource, and time and money won’t be as scarce.” Ecopreneurs sometimes thrive in a service economy where there are not products or in a durable economy where there is no waste. After all, who really wants to “own” carpet. I, for one, will be the first in line for an affordable service contract for a computer (famous for their obsolescence in less than three years).

This is the second post related to Strategies of Abundance for small business ecopreneurs. My first post addressed why paying the bank is often an unwise decision.

Strategy # 2: KISS Principle: Keep It Small Stupid

While the mantra today might be get big or get out, be a millionaire or — for the more socially responsible — “getting to scale” without losing the values the business was founded upon, we’ve discovered the more human-scaled our operations and practices, the more we can accomplish in terms of reaching our Earth Mission.

Size matters not. It’s what and how we operate. Do the best we can in whatever our priorities and live without regrets. It’s a qualitative measure of success, not a quantitative one. Not bigger, but better.

There’s a small mart revolution going on, proclaims Michael Shuman in The Small Mart Revolution. It echoes the “power of one” worldview; we are the world. We don’t underestimate what a nation of ecopreneurial proprietors might collectively accomplish. Perhaps that’s how we view scale: a nation of ecopreneurs. However, we also respect the decision of those ecopreneurs whose fire in their belly lead them to become household names or lead to the sustainable transformation of their communities.

This is the first of several posts describing “Strategies of Abundance” for ecopreneurs and green business owners.

Even in financially tough times, these Strategies of Abundance reflect interrelationships between personal finance and business, especially for small business owners. The key for ecopreneurs is how they use their business to make the world a better place. Profits from a green enterprise are the catalyst for ecopreneurs to achieve their Earth Mission, whether to restore ecological integrity or make photovoltaic systems affordable to all.

STRATEGY #1: Stop paying the banker.

The longer you hold a mortgage, the more you work for the bank and the more profitable you make them. For comparison, below is a chart from our book, ECOpreneuring, reflecting how interest can pile up on a $100,000 mortgage at 7 percent interest for terms of 15 and 30 years. While the monthly payment is less for the 30-year mortgage (the primary reason many of us choose it), we end up paying more than double for the use of the same pot of money.

By accelerating our mortgage payments on our 30-year fixed mortgage by paying down the principal when we could, we have the ability to earn less income to pay the bank than if we did otherwise over the long-term. Prepayment on principal is usually acceptable and completely legal. Every time you pay down the principal, the remaining interest and balance is recalculated, meaning that more of your regular monthly payments go to the principal and not interest payments.

Both for profit and non-profit businesses are led by ecopreneurs who are making the world a better place through their creative, innovative and ground-breaking enterprises. Lisa’s and my book, ECOpreneuring, features numerous “Ecopreneur Profiles” — including David Anderson, the founder and CEO of GreenOptions.com — along with many other brief summaries.

But there are millions of ecopreneurial enterprises prospering throughout the U.S. and around the world. Perhaps you’re one, too.

So, we have formed a partnership with EcoSector.com, an on-line portal serving as a unique conduit for growing the green economy, offering opportunities to share video clips, feature photographs of products or services, and display blogs.

May 1: May Day.

For the average American working for a paycheck, May Day — a pagan spring ritual where you dance around a Maypole — marks yet another, less festive occasion.

From the first of January until around the first of May, all the money many of us will earn goes to pay our share of income tax to the US government.

Kiss those months — that money — goodbye (the present tax stimulus package is really just a refund).

We followed the advice of our parents, as most children do: get a good education, go to college and get a job — a nice, secure, well-paying one, with great fringe benefits, stock options or profit-sharing. But the bimonthly paychecks — after the government gets its share for income, Social Security and Medicare taxes — aren’t enough to keep up with the bills. Even with raises and promotions, many of us feel that we keep getting further in the hole, since the more we earn in earned income, the more it’s taxed. The reality is that the system is largely devised this way, not to tax the very rich but to exact a fee on the middle class and poor to keep these wage earners on the treadmaster of a job — or “promising career.”

The more income-producing and complementary projects my wife and I have in our ecopreneurial business, the more stable and secure we feel, careful to not let work override quality of life considerations.

After all, we, like many ecopreneurs we’ve interviewed or met, don’t live to work. Instead, we find our livelihood and the businesses we navigate deeply satisfying as we make the world a better place through the green businesses — for profit and non-profit alike — that we own or direct.

The key to our approach to ecopreneurship is looking to nature for inspiration. Our green business is both diversified in enterprises as well as the products and services we offer, filling economic niches in much the same way as plants, animals and fungi fill ecological niches that create sustainable, interdependent and healthy ecological systems. For example, there are thousands of bed & breakfasts in the U.S., but only a few that specialize in serving vegetarian (or vegan) organic breakfasts with ingredients mostly harvested a hundred feet from their back door, like we do. That the Inn is completely powered by the wind and sun and welcomes children as guests, serves as additional niche experiences we offer our guests who we generally refer to in our ECOpreneuring book as “conserving customers,” not consumers — but more on this in a future blog.

A nation of 9-5-ers is giving way to a spirited movement of innovators, searching for ways to make a life filled with purpose and meaning, instead of simply earning a living. And they’re thriving in the place-based “honey bee economy” that restores, preserves and conserves the planet.

From an enterprising individual operating a small retail business to an inventor who comes up with a better way to fuel our vehicles, from the founder of a non-profit organization to the organic grower who feeds our local community, just about anyone can be an ecopreneur and run a green business.

Are you one? See how many questions you answer affirmatively below.

• Are you more interested in what you do and with whom you work than how much you make?

• Does community, environmental and social issues drive what you focus on with respect to your livelihood or volunteer time?

• Do you view your experiences, growing and diverse knowledge base and unique skills sets as the primary value you can offer clients, customers or workplace?

• Do you think the late Nobel Laureate economist Milton Friedman ate too many Big Macs after he argued — much to the chagrin of the massive multinational corporations and millionaire politicians — that “the only social responsibility of business is to make profits”?

I, for one, don’t remember the stagflation of the 1970s.

It was a time when prices were increasing at the gas pump and grocery store, and when the economy sputtered along with little or no growth. Some neighbors saw their wages flatten — or their jobs disappear altogether. Gold, often seen as a barometer of economic confidence, was at an all time high (adjusted for inflation). I was pre-teen in a comfty Detroit suburb with a father who worked at then stalwart, GM, so a roof over my head and food on the table was never a concern.

But here we are today, with Priuses outselling Suburbans. Oil and gold are at all time highs. Things seem far more perplexing, interconnected, global. First, there’s the perception of a housing crunch, even though fretting over a 15 percent decline in home values over the last year or two seems rather odd given the incredible run-up of many homes over the past decade, sometimes by over 100 percent.

Second, the sub-prime mortgage mess has snared many who agreed with greedy lenders that living beyond our means was okay. That more jobs are being outsourced overseas or replaced by fancy machines in this increasingly global marketplace isn’t helping either.

Even if the Federal Reserve or Congress and the Bush Administration do manage to convince the American people that they should keep on spending by splurging with windfall tax refund checks — thus avoiding a recession — the printing presses rolling off fresh greenbacks and mounting debt on a national level could result in the onset of stagflation. Oil, while swinging up and down with the speculator’s bets and value of the dollar, will continue on its upward trajectory reflecting the reality of “peak oil,” the period by which its extraction and refinement will get ever more expensive and difficult. Our economy, and those linked around the world, are based on this fuel and this fuel is largely denominated in US dollars. When the dollar falls in value, the price of a barrel of oil must increase.

So why will ecopreneurial businesses fare any different than all the rest if, in

Effortlessly perched along the spectacular coastline of Big Sur, California, along the winding Highway 1, rests the Esalen Institute. While waves crash upon the rocky cliffs, up to 250 people per day participate in enriching workshops or research activities, often followed by a soak in the hot mineral baths tucked in a cliffside crevice. Since 1962, the nonprofit educational institute has provided transformational workshops for people eager to explore and realize human potential through experience, education and research.

My journeys along Highway 1, in search for leading ecopreneurial enterprises, brought me to this healing place and, as I discovered, a thriving residential community that draws energy and sustenance from their surrounding biological richness. It’s this residential community of researchers, staff, and educators, along with the enrichment programs and remarkable natural setting, that have drawn over 300,000 visitors from around the world seeking a greater connection to community and the land.

In their Solarium, a building attached to the main lodge where all the meals are taken in the community, I talked with Juliet Johnson, a former water engineer turned sustainability guide for the Esalen Institute as its Sustainability Coordinator.