Taking Green Business to the Bank
/Want to make your company more profitable with each transaction AND worth more during your exit? Then make it truly green and the money will follow. As of January 2008, a 0.15 oz tube of Burt's Bee's lip balm cost $3.00. The same size tube of Chapstick cost 1.69. Sure, Burt's production costs were about 25% higher, but the cost at the cash register more than made up the difference.
At the time that Burt's had revenues of $164 million, the company sold to Clorox for $913 million. At a time when many businesses will sell for 2-3 times net profit, Burt's sold for nearly six times revenue.
The Body Shop was sold to L'Oreal for nearly $1.1 Billion in 2006. Far ahead of the market cap of similar companies.
The evidence is clear. Profits are higher while doing business and the exit strategy pays better to the founders if your company is truly green and responsible. And you are doing better for the world at the same time.
Starting a business? Make it truly green and socially responsible. You'll sleep better at night and make more money in the process.
