Richard Branson: Time to take chances

Given the state of the world economy, entrepreneurs and business leaders may feel that prospects are gloomy for their start-ups and established companies. With the economies of a number of European countries reeling from the debt crisis, the United States torn apart over raising the government’s debt ceiling – a non-issue in other nations – and the possibility of another global slowdown on the horizon, some executives are making conservative choices in preparation for difficult times.

But this is not the time to play it safe: Never let mainstream views about markets affect your thinking about new ventures. Uncertain times are often best for setting up new enterprises – talented employees are primed to try new ideas and suppliers are willing to cut prices to bring in new clients and extra sales. The secret is to find a product or service that will stand out by improving lives.

Readers have asked which industries and sectors entrepreneurs should consider in this economic climate. In the past, Virgin has often looked for openings in industries where market leaders were underperforming and not treating their customers properly, such as aviation, mobile phone services and financial services.

But now we are focusing on the green sector: finding ways to supply renewable energy, produce clean water and figuring out how to conserve both. We believe this area offers the greatest opportunities.

Consider that our society is facing difficult practical challenges that require innovative, even revolutionary thinking – meat and drink to entrepreneurs.

How do we supply enough energy, food and water to meet the demands of our growing global population? How do we lift billions out of poverty without running out of resources? Can we also restore and protect the natural life support systems on which we depend?

If you are thinking about entering this sector, try to evaluate where the structural opportunities may lie in your region. There should be openings in nearly every market: the International Energy Agency estimates that global energy consumption will rise by almost 40 per cent over the next 20 years; to meet global demand through 2035, our society will need to invest $33 trillion in energy supply infrastructure.

Major oil producers argue there is enough oil to meet these needs but climate change considerations and concerns about the political stability of oil producing nations mean that government officials around the world are turning to other options. Before the nuclear disaster in Japan this year, nuclear power was thought by many to be the strongest alternative and public agencies and private companies were investing in this area; but new safety concerns mean more emphasis will be placed on renewable energy.

Analysts predict renewable sources such as solar, wind, biofuels and hydroelectricity will supply one-quarter of our energy needs. The latest forecast from the research firm Clean Edge Inc. suggests combined sales for solar, wind and biofuels will grow to $349.2 billion by 2020 from $188.1 billion in 2010.

If you are in a region where supplies of fresh water are short, you may want to consider that area. Water shortages are only going to get worse: According to United Nations projections, by 2030 more than 60 per cent of the world’s population – 5 billion people in total – will be living in urban areas.

Through Virgin’s Green Fund, we have invested in a desalination business called Seven Seas Water to create freshwater supplies in places where there is great need, such as the Caribbean. Providing this resource in a sustainable, environmentally sound way is a technical challenge. Is your team ready to tackle such an exciting assignment?

Another area that offers opportunities is energy and water efficiency, which includes everything from lightbulbs to insulating materials to kitchen taps. This is the most cost-effective means of reducing CO₂ emissions, at the same time making our resources last longer.

A recent McKinsey study found that if $170 billion a year is invested in energy efficiency for the next nine years, growth in energy demand will be halved – a big step towards reducing CO₂ emissions. If you are looking for rewarding work, think about playing your part in securing the future of our planet. If you are struggling to find funding for your idea for a product or service, or to determine the way forward for your established business, now may be the right time to try something different. Depending on your location and area of expertise, you may decide that your best prospects lie in the green industry. It’s time to offer some solutions.

Next week: Yellow Brick Road founder Mark Bouris

If you and your team are looking for rewarding, meaningful work, think about playing your part in securing the future of our planet!

BRW

Comments (0)