Wednesday 27 May 2015

Start An Alternative Energy Business

Consider starting an alternative enerergy business.


Alternative energy involves much more than simply wind and solar power. For the entrepreneur, starting an alternative energy business can prove to be quite lucrative. Whether it is providing the components for producing energy, installing complete systems, or merely assisting others in reducing their energy consumption, there are business opportunities waiting to be explored. The potential market is enormous, from homes to factories, energy is used in nearly every aspect of daily life. There is money to be made in supplying components to consumers for providing energy if you follow some principles.


Instructions


1. Decide on the type of alternative energy components you want to supply. Research the business, discover what is involved and if it can be done with your level of experience.


2. Locate wholesale suppliers of the components to be sold, allowing enough mark up from their price to retail pricing to ensure a profit. This can be done online also, searching business to business, or b2b, sites.


3. Contact suppliers, inquiring about their shipping policies; shipping costs must be included in your cost to profit margin. Some companies offer drop-shipping, which means they will ship to your customers with your invoice included in the package. This will state your price, not the wholesale pricing. Make sure your invoice is part of their procedure, and get instructions from them on the process involved. Drop shipping of products may be your best option until your funding allows for large shipments to be ordered and warehoused, giving a bigger profit margin.


4. Develop a business plan. The Small Business Administration can help with this, as can books on the subject.


5. File a business name at the county clerk office, this is known as a D.B.A., or "Doing Business As" form. There is a nominal fee involved.


6. Search your state's government web site for taxation and business licensing requirements. Fill out and submit all forms required for the new business.


7. Seek out needed funding. Using your business plan, seek funding from sources such as banks, venture capital, even governmental loans. Searching online will help find sources.


8. Advertise the new business, on the internet, setting up a website. Advertise In print, using newspaper ads and flyers, and print up business cards to distribute.


9. Continue learning and promoting your business. Subscribe to, or read online, publications relating to your field, and to promoting your company.


10. Accountants, lawyers and staff may be needed at this stage to ensure that taxes are paid and to help you run your company effectively. Get and check references from other professionals.

Tags: alternative energy, business plan, profit margin, promoting your, starting alternative