Green Business: The Movement is Underway
Are you thinking about going into the green business? Do you want to support people that think green? The good news is that the green movement is finally underway and in a big way. Here are some of the underpinnings of that movement.
Peoples Attitudes Have Shifted to Green
I think I shifted my attitude, in a big way, last year when it cost $175.00 to fill up my Ford Pickup Truck. I calculated up my gasoline expenditures for two vehicles and it was over half the cost of my mortgage. That’s when my thinking started to shift green. I realized that buying gasoline was no longer a sustainable way to do things on our budget. It was soon, thereafter, that I noticed the entire world, not just a few tree huggers, were changing their attitudes. It’s as if the whole world woke up looking for a sustainable way of living. Have you ever just woke up one day and said to yourself, “I am going to do the right thing and do it now”? That’s what the green movement is all about.
Evidence that the Green Movement is Gaining Momentum
Gas Guzzlers Down: Fuel Efficiency Up
There is a reason that U.S. car manufacturers are having such a hard time right now. They have been known to be has guzzling and poorly efficient. While, at the same time, the Toyota Prius and Honda Civic have had large increases in sales. American car companies are having such a hard time that they needed billions in bailout money and there is no end in sight. GM, in the industry, is now referred to as the sinking ship because the red ink appears to never stop flowing.
What you should realize is that many people are not only buying from these companies to avoid paying for gas, but also many plan to never buy from these companies ever again. It’s no longer a money issue. It has become a personal issue. Why? A lot of these people have made a real shift to green living and do not want to associate themselves with companies that have a poor environmental track record. In addition, many people feel that the American car manufacturers are partly to blame for the huge rise in gas prices and environmental degradation.
New Green Products Emerging
Electric Autos
A lot is happening on the electric car front. There is a new electric car in town called the Mini Cooper Electric. It will be leased to 450 lucky applicants out of over 1800 applications. The Chevy Volt and the Misubishi iMiev will also be out in 2009 and 2010. Warren Buffet is investing in Chinese electric car manufacturer BDY with a 10% stake. According to Keith Bradsher of The New York Times, "Chinese leaders have adopted a plan aimed at turning the country into one of the leading producers of hybrid and all-electric vehicles within three years, and making it the world leader in electric cars and buses after that." Imagine what will happen to the world when China learns how to make quality environmental cars?
Green Energy
T. Boone Pickets
You might have seen T. Boone Pickets on television. He is a billionaire that made his money in oil. He has come forward and spent millions on getting the word out on how to go green. His plan basically focuses on supplying the energy needs of America with wind power and using natural gas to power cars. His plan would help us bridge the gap until other green energies could be developed.
Solar and Wind
There has been a renewed interest in solar and wind power. What has kept solar from really gaining momentum is that it was always more expensive than oil, coal, and hydroelectric. What has been happening, recently, is that solar is making large improvements while oil and coal are getting more expensive. With the advent of nanotechnology it is estimated that solar conversion rates will soon double. That means that it won’t be very long before solar will be cheaper than fossil fuels. When that happens, you can expect a huge shift in consumer preferences.
Wind does not expect to get the same speed in technological improvements as solar, but a renewed interest in wind is taking place. That is why T. Boone Pickets and many other entrepreneurs and local governments are buying up a lot of land and putting up wind turbines everywhere. People have finally realized that sustainable living will, in the long run, be the most profitable.
Green Business Investment
What is the green bubble? It will be the new and immense capital poured into green living within the next 10 years. It will be the countless new innovations taking place and people’s attitudes and desires to buy from responsible green companies.
Bubbles will eventually pop and things will come back to normal. However, the immense value of a bubble is that it develops the infrastructure and capital needed to transform economies. You can expect that green initiatives are underway and that the next big thing will be the green economy. Is this a good time to invest in the green market? It’s a great time to get in, but it will be difficult to know when to exit. I think you should have a clear exit strategy in place before investing. Here is what Warren Buffet said, “As a group, lemmings have a rotten image, but no individual lemming has ever received bad press”. In other words, know when not to follow the crowd. If you are interested in a green business, now is a good time to start a green business or just support one.
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