BizBooks: We will begin taking questions in less than hour.

Scott Cooney: Looking forward to it.

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BizBooks: Welcome to the 8th segment in the BizBooks Ask the Expert Series.

Today we have with us Scott Cooney.

Scott Cooney has started, grown, and sold three successful green businesses in the past five years, and is currently working as project manager for a global sustainability consulting firm.

Today we will be discussing his book Build a Green Small Business: Profitable Ways to Become an Ecopreneur. Whether you're looking for broad reasons why environmentally friendly businesses are poised to thrive or specific eco-responsible ideas, this is a discussion you won't want to miss.

Welcome Scott, let's get started!!

Scott Cooney: Thank you. I am happy to be here, and excited about talking about green business!

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BizBooks: When did you first realize that green is the way to go?

Scott Cooney: I grew up in South Florida, and spent a lot of time fishing in the Everglades, and saw as I grew up my backyard turn into a housing development. Over the years, I read more and more in the Fort Lauderdale Sun Sentinel about water issues, mercury toxicity in fish, land use, conflicts over grazing rights, sugar farms, nutrient loading, suffocating fish nurseries like the Florida Keys, and I became committed to helping out.

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BizBooks: Tell us about your three previous eco-ventures.

Scott Cooney: I wrote up a business plan for a marketing class when I was doing an MBA at Colorado State University, and found that I could create a niche market in a normally highly competitive field that might create a market advantage while also producing net positive results for the environment. It was a lawn care and maintenance business that used electric mowers, trimmers, edgers, and sweepers that were easily charged on solar. The pollution from 2 stroke lawn mowers is overwhelming, and was chronicled well by the EPA, so it was an easy one. Black and Decker creates a nice line of electric equipment, and I found it to work quite well. The business took off after about a year, and was quite profitable and well received.

The second business rolled out of that one, a landscape maintenance service that treated for weeds and bugs without using chemicals. This one was EXTREMELY well received, and I learned that while many people care about pollution of the air, many many more people really care about the chemicals in their yards, on their pets' paws, on their children's play areas, etc.

The third business was a green business directory, the ReDirect Guide. It was a directory for the greater Salt Lake area and contained full listings of eco-friendly businesses.

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BizBooks: If you had to start a fourth, what would it be?

Scott Cooney: Ecotourism. I love the idea of showing people about the beauty of nature and how they can enjoy it without consuming it. Sustainable tourism has a lot of potential for job creation and environmental education, but it also has a huge potential for greenwashing.

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BizBooks: Is green just a fad, or is it going to be hip for a while to come?

Scott Cooney: It's great that the popularity of environmentalism and sustainability has grown, but I think its just a matter that the time has come. Were simply running out of resources (fresh water, arable land, energy, etc.), and people are waking up to the chemical influence in their lives, largely thanks to the ah-ha moment many of us get when we learn about organic food.

Consumers are starting to read labels and watch out for bad ingredients. They're starting to be concerned about the chemicals in the food they're feeding their children and themselves. They're starting to realize that the planet truly is in trouble. And they're starting to realize that maintaining the status quo of oil being the primary driver of a global economy is a really dangerous scenario. It may hit home for some just because of gas prices. For others, it's their kids, regarding choices like infant formula or bad food leading to diabetes, or increasing incidences of autism which may be linked to increased levels of mercury in our air and food supply, especially fish. For others, it's simply a matter that they've gotten over the antiquated view of the American Dream of the white picket fence and the yard, and realized that a walkable community where you know your friends and neighbors and have access to nightlife, restaurants, work opportunities, public transit, parks, bike lanes, etc., is a pretty spectacular lifestyle.

But whatever it is, I don't see those people ever going back to the exurbs, going back to junk food, going back to spending 2 hours a day in a car... There's just more important things in life, and this sustainable lifestyle that everyone is talking about is really hitting home with people.

So, really, I think it's here to stay. It makes it more fun that it's hip. To be honest, I have friends and family that always thought I was crazy, and now they're calling and asking when I'm going for a bike ride to see if they can join. They're asking about a healthy vegetarian diet. They're asking about biofuels. I don't ever see them going back to their traditional norms, either.

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BizBooks: Is there a particularly good way to sell yourself as a green brand?

Scott Cooney: This is a terrific question. This is particularly dangerous ground for a company. They really have to really walk the walk. Green consumers are too smart for greenwashing. Exxon has been trying forever to promote themselves as good for the environment. BP, Shell, General Motors. Theyre all on the bandwagon now, but who believes them? It wont translate into sales until people believe it. Apple, a truly hip brand, is being very careful not to brand themselves as green right now, because they're not. They're one of the worst offenders in terms of waste and in terms of the toxic components in their consumer goods. If they were to call themselves green, many people would believe it right away, but then slowly the truth would come out and they would face serious repurcussions.

So to brand yourself and your business as green, I would recommend that business entrepreneurs spend some time in my opening chapters of my book, which introduces the green consumer, the 5 golden rules of choosing a green business to start, and how to effectively market your business in this rapidly growing market. I talk a lot about the dangers and pitfalls, and about savvy customers and how to truly communicate with them.

But the bottom line is you have to walk the walk. Consumers are smart, especially green ones, and also very well connected. Online reviews can really hurt a business if they're greenwashing. People trust other people more than they trust the ads they see on TV.

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BizBooks: What aspects of small businesses make them especially amenable to going green?

Scott Cooney: Small businesses are the driver of the economic engine, as we've been hearing a lot about in this election year. One of the main facets is that they can move a lot faster than big businesses. There is a lot less bureaucracy, and they can respond to consumer trends quickly and efficiently, which gives them a terrific leg up. This is why my book is very oriented towards small business. That, and I like local, small businesses, as many other green consumers do.

So adapting a business plan is much easier if you're a 15 person organization than if you're a 15,000 person organization. I consult with large and small businesses, and I see how difficult it is to change a large one. One of the businesses I'm consulting with right now is 27,000 employees, and the pace of change is glacial. On the other hand, I've consulted with startups, and in a week we have a green business plan, and within weeks or months, it is rolled out.

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BizBooks: What have governments, both federal and state, done in the way of encouraging green-friendly business ventures? How can someone take advantage of them?

Scott Cooney: Don't forget city governments. And really, there might be more help there than from the fed or state. In Salt Lake City, Mayor Rocky Anderson assembled a green team and was instrumental in creating a city-wide green business program. It had voluntary membership where businesses could agree to reduce water and electric waste, and would get free consulting from the city on how to do this, and then were promoted free and were invited to networking events. It was terrific publicity, and a great program by a truly progressive mayor. Many other cities (Boulder, Fort Collins, San Francisco, Austin, Portland, Seattle, etc. etc.) have very similar programs. I would start there and network up to the state and fed if you are interested.

But to answer the question, there are sometimes

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BizBooks: What adjustments would you make to the advice in your book given the current dire credit crunch?

Scott Cooney: It is probably inevitable now that the country, and perhaps the world, is headed for a recession. I am in touch mainly with the sustainability community, having worked in it for the last 7 years, and to be honest, the sustainable revolution is creating more jobs now than I think most industries. The consulting company I work (Saatchi & Saatchi S) for is hiring rapidly, set to double in size in a year, mainly because there is more demand for sustainability consulting than anyone can really fill right now, and we're one of the biggest.

Many great companies have come from small startups that began their journey during times of recession, possibly because there were fewer jobs available and people were forced to create their own. So try to think of it as a time of opportunity!

Perhaps half the businesses I suggest for people to start or get into in my book are budget startups, if not shoestring. It doesn't take much to get an eco-friendly lawn care service going. It doesn't take much to start a chemical free housecleaning service. These businesses provide stable incomes, replace traditional, polluting/chemical oriented businesses, and provide a lot of freedom to business owners.

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BizBooks: What large, well-known corporation would you point to as a model for a business that takes advantage of green business methods?

Scott Cooney: Even though they sell lots of Tundras, the question is about businesses that take advantage of green business methods, not about truly green businesses, and I think Toyota is one that does implement a lot of sustainable methodology. Subaru and Toyota take advantage of a lot of zero waste, high efficiency methods, which is good. Toyota also creates a lot of energy efficient vehicles and pioneered hybrid technologies when others, especially Ford and GM, said it cost too much and wasnt what customers wanted. 3M does a lot of quality work in terms of waste reduction. Adobe, Google, a lot of the silicon valley kings out here in the Bay Area are ahead of the curve in terms of their sustainable business practices. EBay is a very notable exception, still stuck with their heads in the sand, I think from short-sighted leadership and singular focus on the financial bottom line as opposed to the triple bottom line that also includes social and environmental concerns.

In terms of truly green businesses, I would say Whole Foods, Seventh Generation, Burts Bees before they sold, and Cartridge World. There arent many giants, no "800 pound gorillas" in so many of the green industries, to paraphrase Jeff Bezos. So there is a lot of opportunity.

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BizBooks: Which presidential candidate will be better for encouraging such ventures?

Scott Cooney: A timely question, for sure. Both candidates have talked a good deal about energy independence, which is a very good thing, getting off of foreign oil, which seems to be causing so much political, social, and environmental instability throughout the world. It's not just the Middle East. I saw the documentary with George Clooney and Don Cheadle "Darfur Now" last night, and it is astounding that even in that remote corner of the world where people are fighting and dying, one of the main root causes of all the hatred and violence appears to be foreign oil companies.

So energy independence would be a terrific step for the U.S. However, I think we need more than that. We also need to realize that the U.S. needs to create a lot of renewable power, so that we can be *sustainably* energy independent. There is enough wind power potential in Texas and South Dakota to power the entire U.S. grid. And wind energy is getting cost competitive with coal, which has always been cheap. I think Barack Obama will be very aggressive with his "Apollo Project" for clean energy, with tax incentives for creating green jobs and renewable clean energy sources like wind, solar and geothermal, plug-in hybrid electric cars, and the like. I just think anyone who would allow his campaign slogan to be "Drill baby drill" just doesn't quite get it. There's just not enough out there and there are broader solutions that are needed.

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BizBooks: What should governments be doing more?

Scott Cooney: There are a lot of incentives out there for small business owners, and this would be a terrific opportunity to change the game. Take, for example, the allowance a small business owner can take when he or she uses their own personal vehicle for work purposes. It is 50 or so cents per mile (it's changed a few times in the last 2 years). This can be reworked so that it rewards purchases of biodiesel fuel. It can be changed so that owners of hybrids get extra allowable reimbursements.

There is so much that governments can do, but so many political obstacles. But one of the best is starting small: county and city governments can do as Salt Lake City, Boulder, Austin, San Francisco, and many other cities are doing, and provide free consulting for energy and water usage reduction strategies. Frequently, these programs draw sponsorships and pay for themselves and are immensely popular.

Tax credits for renewable energy projects are also very helpful in creating green jobs.

But in the long run, it is business that is the only entity with enough power to change the world for the best. Paul Hawken made that claim 20 years ago, and it is ringing true today more than ever.

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BizBooks: Thank you so much. How about we open it up to our readers.....

Scott Cooney: Terrific!

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Conway, Arkansas: Could you discuss possible ideas that would succeed in smaller town settings, in areas of green business?

Scott Cooney: I love small town settings. It is amazing how well some green businesses do there, mainly because people crave business that is not chain restaurants or Mega-marts. There are probably ample opportunities in the restaurant area, and my book gives synopses of 5-7 types that are eco-friendly. A good chemical free housecleaning service is usually an easy sell, and I would guess you wouldn't encounter too much competition. Bicycle oriented businesses usually do fairly well in small towns that are easier to pedal across than many big cities. How about an eco-transport store that sells electric bikes and electric scooters? Moms love those, as their kids don't have to be buying gasoline, spilling it in the garage, etc. to fuel their scooters and razors. There are so many great ones! I encourage you to buy the book and browse!

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Redlands, Calif. : I am a international business major. what is a good start for a small green business?

Scott Cooney: Sustainability consulting is really hot right now, and with an international focus, you can really tie into multinational corporations, especially medium sized ones, that are looking for help as they try to deal with some countries that are greener than others, and some that are shifting regulations. Take a look at that chapter in the book, and realize that if you get in good with a couple of companies and help them through some tough international laws and different types of customers, you will become indispensable and make oodles of money! Ecotourism, also a terrific option. Sustainable travel agencies as well as on-the-ground ecotourism operators are really a booming field in a shrinking industry.

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Santa Barbara, Calif.: With the economy in the position it's in, I'm hesitant to start any small business-- let alone a green one. Do you have advice for people with big dreams but small pockets?

Scott Cooney: The book is riddled with ideas of green businesses that can be started on a shoestring. I give an idea in each chapter about how much it might cost to start each one, and I was surprised interviewing many ecopreneurs at just how little it cost them to start their business. Green costs more in some ways, but it also generates a lot of savings in some ways by cutting waste, buying things second-hand when possible, etc. Traditional businesses are going to have to continue to contend with increasing costs of fuel and energy. Your streamlined and eco-friendly business will be ahead of the curve, meaning better opportunities for profitable years.

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Atlanta, Ga.: Besides your book, what other resources do you recommend that one use to discover how best to go Green?

Scott Cooney: There is an appendix in the back of the book that lists a great deal of resources for learning about sustainability, small businesses, and governmental information. I read blogs like IdealBite, TreeHugger, etc., but also get information from Care2.com, E! the Environmental Magazine, and of course Mother Jones.

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Washington, D.C.: How do you expand the size and scope of your operations while staying true to your green beliefs?

Scott Cooney: This is a terrific question. As I mentioned earlier, it is much easier for a company of a few people to really go green, but it is much more difficult as you get bigger. The main thing I would encourage would be to hire people with a true alignment around sustainability, both in their career/career goals, and in their personal lives. If people are recycling, saving electricity and water at their home, eating organic and not wasting food, and educating themselves about sustainability in the news, they are more than likely to be terrific employees who will contribute to a green strategic vision, save you lots of money in resource use, and, perhaps most importantly, have very high loyalty to your business.

The other major thing I would say is that you should have a corporate vision that is clear and out in the open around sustainability, so that everyone involved at your company buys in and can guide the company forward in a sustainable fashion. Working at a very green company right now, I can tell you that it is more of a family environment than an office environment. We have a garden that we all made with native plants outside our office one weekend where 80% of our employees showed up to volunteer and get dirty. We have a list of green restaurants in our area that we like to eat at. And it all revolves around the fact that our founders made it clear from day 1 that sustainability was a key value of our company.

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Washington, D.C.: Is it true that Washington DC is one of the least green cities in the united states?

Scott Cooney: I'm not entirely certain. One of the things that is really heartening is to see cities taking major strides toward sustainability when federal and state governments have lacked in leadership in that area. One thing that is really amazing is that many real estate agencies now incorporate a 'walkability index' into their listings. If a property is for sale in a walkable neighborhood, it is starting to be blatantly obvious that there is much higher demand in these neighborhoods, and that they are increasingly standing up to the losses many properties are seeing. I would check in with a local real estate agent, see if there are any ecobrokers in your area (http://www.ecobroker.com), and ask them about walkability indeces. Other aspects are public transit, air quality, incentives for carpooling, etc.

I'd invite anyone to come visit the greatest city on Earth, San Francisco, where things like the casual carpool (google it!) are just part of our culture. I walk to work every day. I live with two young single professionals who don't own cars and don't want to. Organic food is everywhere. The bike lanes are frequently more crowded than vehicle lanes. The city also has a great green business program that helps small green businesses.

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Wildwood, NJ: Are there any government benefits or subsidies to make going green both ecologically-friendly and bottom-line friendly? Does it vary by State?

Scott Cooney: Yes, there are many, and they vary wildly by state, county and city. Your best bet is to contact your local municipality and ask. Also, contact green businesses in your area and network with them to find out. Sorry, but my knowledge of New Jersey is pretty limited! I know the city of San Francisco helps offset the cost of solar installations for businesses within the city, which has led to a boom in solar sales and production.

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Boston, Mass: There's a lot of disparate academic research about why consumer's choose to "go green" - many of which hold that the mass of the market won't be swayed by an environmental product attribute, (or professed environmental product attribute) unless that product is satisfactorily fungible for a conventional product. Many would further hold that the satisfactory level of product fungibility is nothing less than total and complete replacement - green products have to perform as well as their conventional counterparts, or they will will not curry the favor of the majority of consumers.

With this in mind - what role do you see the frontiers (read: ever-changing limits) of green chemistry / technology and ultimately green product design playing in the ability of marketers and entrepreneurs to find and build markets for green businesses?

-sean

Scott Cooney: Terrific question. There are many "light green" consumers out there who would gladly buy green products, so long as they are truly replaceable for a traditional product, with no loss of characteristics and functionality. There are fewer "dark green" consumers who would buy these products no matter what.

What that does is create continued opportunity for ecopreneurs to continue to create fantastic green products. It also creates a challenge in that the bar is higher in many cases, and if someone is used to suds in their shampoo, and they only see a few, they may not buy a "green" shampoo again, even if it is a very toxic chemical creating those suds, and even if the suds are completely unnecessary for cleaning your hair. So it's an ever-evolving marketplace. I can tell you this: the ranks of those who are starting to care more about the toxics and less about the suds are swelling rapidly.

One of the other companies I consult for is a large consumer products manufacturer, and they have come to the realization that they are losing shelf space at many stores because green products are in higher demand.

But to your question, the role of green chemistry/technology and product design is a HUGE and growing bonanza for the ecopreneur. The demand is out there, and there are so many products that don't have green alternatives right now. I would suggest finding a product line that may not have much in terms of green alternatives, and figure out if you can make it greener. The markets for these products are so hot right now, you are in a great position if you can create something that provides a good alternative.

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BizBooks: Looks like that's all the time we have for today. Thank you Scott for taking the time to answer our questions.

And thanks to everyone for joining us.

Scott Cooney: A heart-felt thank you to everyone. It is so rewarding to see so many great questions and interest around sustainability, and I apologize that we couldn't get to all of them. I wish everyone well in their green ventures, and thank you for your interest in my book. And a special thanks to Matt and Heather at McGraw Hill for setting this up! See you next time on BizBox!

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