Small Business Owners Will Pay More For Green Products

If you have not already considered your Green strategy, now might be a good time to start if you are selling to small business owners. According to a new survey from the Wells Fargo / Gallup Small Business Index, two thirds of business owners are willing to pay more the products and services needed to run their businesses if they knew that the companies suppling them were environmentally-friendly.

According to Harlan Lee, CEO of Virginia-based Harlan Lee & Associates: "Environmental actions I take today with my business will help ensure that our company can continue to grow and thrive in the future. Combining business practices with a responsibility for the environment is the right thing to do. If every small business owner could share best practices and take simple steps to incorporate environmental activities, together, we could make a very large impact on the success of our businesses, our customers, and ultimately our environment.

Small business owners are also in favor of government action that is aimed at improving the environment including:

• Spending government money to develop alternate sources of fuel for automobiles (78% in favor)
• Spending more government money on developing solar and wind power (76% in favor)
• Setting higher emissions and pollution standards for business and industry (75%)

With so many small business owners looking to the environment as a key element in their purchasing decision, does your company have a Green policy outlined that shows your values are aligned with those of your customers?

Small Business Optimistic Despite Weakening Economy

In Wells Fargo's most recent Small Business Index it was found that small business owners continue to be optimistic despite the weakening economy.

The index fell 4 points to 110 from its record high 114 in the fourth quarter of 2006. 90% of small businesses surveyed said they are satisfied being an entrepreneur and 78% said they would do it all over again.

The index measures 6 variables - financial situation, cash flow, revenues, capital allocation, job hiring and credit availability for both current and future expectations.

According to Wells Fargo senior economist Scott Anderson, "The slight drop in small business owner confidence was evident in both the present situation and future expectations components of the index, suggesting weaker current and future conditions than the last quarter of 2006. The combined pressures of high gas prices, resetting mortgage rates, and moderating home price growth continue to put strains on household balance sheets."

Top 2007 Small Business Challenges

A new report by the Wells Fargo/Gallup Small Business Index looked at the top challenges small business owners are facing in 2007. They include:

• Cost of insurance (64 percent)
• Taxes (62 percent)
• Energy prices (54 percent)
• Government regulations (45 percent)
• Finding qualified employees (42 percent)

Of the small business owners who had a written business plan:

• 90 percent say generating stronger revenues is their top priority for the year ahead
• 63 percent also say cutting operating expenses is a major objective
• 57 percent cited reaching more customers
• 42 percent are increasing their advertising budgets
• 37 percent are investing in new technology