According to the United Nations Environmental Program (UNEP), about four in every five energy requirements use fossil fuels. These produce greenhouse emissions, which pollute the environment and cause climate change. A suitable and sustainable alternative to fossil fuels is green energy, or in broader terms, renewable energy. This is energy drawn from natural sources, such as the sun, water, and wind.

There are three reasons why renewable energy is the best energy option moving forward:

• Cheaper than fossil fuels
• Emit very little greenhouse gases
• More readily available than alternative sources of energy

Steps to Becoming a Renewable Energy Entrepreneur

Plan and Research

Like all other businesses, conducting a market analysis prior to beginning operations is key. Conduct a diagnosis of all aspects of the market, such as:

• Sourcing raw materials at an affordable price and with the least possible risk.
• How competition operates, and how you can carve out your niche.
• Where to find your target audience and how to appeal to them. For renewable energy sources, you will likely find individuals in the 32-40 age bracket seeking clean energy for their homes or businesses. Customers' purchasing power is also important to make near accurate sales forecasts.
• The current market trends in the industry, and if you can provide them or improve them.

Selecting Business Type

This step is necessary before proceeding as it sets the basis for the business to be formed. Consider registering your business as a Limited Liability Company (LLC) or a corporation. LLCs protect you from your company's liabilities, debts, and taxation issues. A corporation is also separate from its owners; therefore, you are shielded from potential risk.

Now that you have selected your business structure, it is time to fine-tune the rest of the details, such as:

• Carefully decide on the best objectives, mission, vision, and goals you wish your business will uphold. Be as personal and specific as possible, as these will be the guiding values for your business for years to come. As the business grows, you can update these to reflect these changes.
• Set a rough estimate of the expenses and income you could receive using data from your market analysis. When the business is launched, you can now work towards this.
• Curate an effective and conclusive business plan and blueprint that entails all you need for the business regarding capital, labor, and market share.

Selecting what exactly you will sell

Will you be providing a service or a product, or both? In the renewable energy industry, for instance, solar energy, you have the option of selling solar panels and installing and repairing them. Services ultimately sell more and better, as they are continuous, while products are more of a one-timer. It is advisable to consider providing both.

Get necessary certificates, permits, and licenses.

Generally, most governments will offer subsidies to entrepreneurs venturing into renewable energy sources to encourage them in the environmental cleanup process. Therefore, the registration process will not be a hassle. The requirements include:

• Taxpayer Identification Numbers (TIN) such as Social Security Number (SSN) AND the Employer Identification Number (EIN). The IRS will require these to aid in tax payments and filing by the entrepreneur.
• Article of Association to clearly state what your company will be doing.
• Article of Memorandum stipulates who the shareholders are and what share of the company they own.
• Certificate of Commencement of Business to kick start business registration and operations.
• General Liability Insurance.

Next, you must visit your state registrar's office and register your business. Most state offices are providing these services online.

Financing

Finding sufficient capital for your business can be spread in several ways. You may use your equity, but in this case, have a clearly laid out plan to reimburse yourself. Remember, your business is a separate entity from your personal finances. Another effective way is to use credit methods, increasing your credit history and building your creditworthiness.

At this stage, set up accounting for your company. In fact, it is advised to have accounting set up as the first step so that every dime is accounted for. Consult professional accountants for this if you feel you are not really up to the task.

Human Resource

Hiring well has both short-term and long-term effects. Especially for the first batch of employees, extra care is to be placed since they will set the pace for your future workforce. Set clear boundaries early enough, negotiate wisely, settle disputes quickly and adequately, and share your passion with your employees. Allow them to grow and glow in your business.

Since finding employees educated in the energies is a perfect fit, consider environmentalists passionate about changing the world. Consider your company as a blank canvas where everyone has something to paint.

You will also need to obtain Workers' Compensation insurance for your employees.

Marketing

The most important aspect of a business's online presence is having a website. It is your company's digital footprint where potential clients can reach you. Have a working cellphone number. Keep your social media pages active. Advertise your business through online means or TV adverts. Ensure your consumers keep returning and spreading the word about your services to others by offering the best possible services. Having working contact tools not only ensures legitimacy but also automation of feedback.

You can create your website in a few hours using tools such as WordPress and Wix. You could also hire professional services who provide this as a package, including creating your logo and byline.

Educate yourself and your target audience

Attend seminars and workshops to find out new trends in the renewable energy sector. Create and build a passion for green energy. Energy is indeed contagious. Once your clients see that you are communicating value to them and not necessarily making profits, they will trust you and become loyal clients. Once you have educated yourself, use your online and physical presence to educate your target audience.

Protect your intellectual rights

Patent your idea if it is unique. Along your renewable energy business journey, you will surely come up with ingenious ideas to improve the sector. Protect your intellectual property at all costs. It may just be an idea to you, but it could be millions of dollars to another investor. Build your brand to a serious level – the level where you can sue for defamation if another party uses your brand without express permission from you.

Starting a renewable energy business has been simplified over recent years. Further, technology has simplified the process by ensuring that most activities can be conducted online. For further information concerning the intricacies of the renewable energy industry in America, visit the US Department of Energy website.