If you are thinking of starting a small business today, think CIRCULAR and think GREEN.
29 January 2024
Considering the time we are in economically and the climate crisis facing us, what the world needs is not another brown economy, but what the world needs is a green economy that will give back to its communities and our natural environment.
Small businesses also known as SMEs have an important role to play as according to the World Bank, they represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included.
The more green SMEs we have the better. Some regard small businesses as the heart of the green economy. SMEs are already providing innovative solutions in response to local social, environmental, and economic challenges. With innovative business cases, these eco-inclusive enterprises are already pushing the inclusive and sustainable economy forward. At the same time, business models of eco-inclusive SMEs ensure that nobody is left behind in the green economy transition. Along their value chains, eco-inclusive SMEs create jobs for marginalized communities, deprived women, or unemployed youth.
SMEs are doing a great job when it comes to confronting social and environmental challenges and supporting the green economy. This leaves me with a question, do we have SMEs in the biogas market? The answer is yes, especially when it comes to biogas for domestic use. The are more small businesses, selling small-scale biogas digesters for domestic use while some are even going to the extent of turning waste into methane and selling it in cylinders alongside gas stoves.
These business models are pushing the green economy scale higher, but more can still be done in forming more innovative small businesses in the biogas market. There are so many business ideas that can still be tried out, and with that being said, here are a few that I have put together for you:
1. Collecting organic trash
Collecting organic trash is similar to doing a recycling business. You collect trash from your local food businesses that don't know how to get rid of their waste, like restaurants, supermarkets, and others, and sell it as feed for biogas production. This is a low start-up cost business so starting won't be a problem as the material needed is also easily accessible, but finding clients to accept your trash could be a bit of an issue as there are not too many businesses making biogas in some countries, others may need convincing, and some may want you to separate the organic feeds before accepting them. This is a good business idea for anyone who wants to start a small green business.
2. Supplier
Getting into the biogas market can be very difficult if you are looking into the manufacturing sector. This is because of the high project cap needed, material cost, licensing, and other factors that come into play. If you are looking to start small I would suggest becoming a supplier as this would be a less costly business to start especially if you are operating online as an e-commerce business. Material is usually cheaper and saving can be easier when purchasing in bulk considering the discounts, and fewer trips that have to be taken. That is how you would have to do your stocking as a supplier. The advantage that it comes with would be access to material for a cheaper price and the profits that will come with selling the material allowing you to also grow and expand, and to achieve your vision.
3. Gas Storage
A gas storage business is also a great idea. I've seen some businesses jumping into this idea as the start-up cost is lower and has lesser risk. You can do this by making storage bags that people can use for their gas or even providing them with storage space as you grow and expand. The are a few things to also look out for in this business like transporting your product to your customers and manufacturing material.
4. Dropshipping
Dropping shipping is similar to e-commerce but not quite the same as dropshipping doesn't require you to have inventory although you have access to a lot of it. In a dropshipping business, a customer purchases through your website, and the original retailer (which you will be in partnership with) makes the shipment to the customer. In this case, for your dropshipping business, the customer will be purchasing biogas supplies and products like gas stoves, portable biogas digesters, gas heaters, and others. The great thing about this business is that you can work from your laptop and not have to worry about the rest.
5. Installation services
This is another good idea for starting a small biogas business. Offering installation services has its benefits as well as helping you to stay up to date with the latest biogas technology. This will also help your business stay innovative but might require you to do some form of training to be legally allowed to do installations.
6. Biogas Training
This is a business that is already starting to pick up due to the rate of untrained people in the industry including officials. According to Chris Huhn (ABDA), this is believed to be another barrier to a lot of projects, so getting into this business might just be a good idea. A few important things to consider are getting licensing, studying material, and a place to train your students. I have to admit, like this one as well.
7. Consulting
Biogas consulting has to do with sharing advice on biogas. An example of this would be sharing advice with a client on how they can get the best out of their biogas/biodigester, or where they can add biogas into their business models. There are people out there who are willing to pay for such information if it can be trusted, so over here you'll also have to provide some form of certification or license to convince people to believing that you are legit.
8. E-commerce store
Gas e-commerce is an emerging trend in the gas industry, and some companies in the industry have already started tapping into it. This trend is driven by the fast-growing e-commerce business, which makes me curious to know if this can be done with biogas. I know that there are already big companies looking into this, so if you are planning on selling some of your homemade biogas do consider looking into e-commerce just don't forget to seek licensing, and to operate within the government regulations.
9. Biogas Awareness drives
Spreading awareness is a great idea that can land you sponsorships and support from government and industry stakeholders. This would also do well as a small business idea but you might have to start without any sponsorships and convince sponsors to back you up. You would do this by letting people know about the advantages and disadvantages of biogas including its dangers, and how people and businesses can use it safely. You can even invite delegates and perform plays to increase effectiveness.
That marks the end of the few business ideas that I have for you.
My special advice to you is to think big while you start small and don't be afraid to work with big businesses because being a small business doesn't mean you cannot rub shoulders with the big ones.
Just remember that no matter how small your business may be make sure that you have licensing, and are operating within the regulations so that customers and clients can also learn to trust you.
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