Convenience

1022275
2071082
598212
599510
214711
265735
145355
193158
Other: 20%
Services: 40.5%
Retailing: 11.7%
Construction: 11.7%
Finance & Insurance: 4.2%
Wholesaling: 5.2%
Transportation: 2.8%
Manufacturing: 3.8%
F I G U R E 5 . 3
Small Businesses (Businesses with Fewer than 20 Employees) by Industry
Small businesses are especially strong in certain industries, such as retailing and
services. On the other hand, there are relatively fewer small businesses in industries
such as transportation and manufacturing. The differences are primarily a result of
factors such as the investment costs necessary to enter markets in these industries.
For example, starting a new airline would require the purchase of large passenger
aircraft and airport gates, and hiring an expensive set of employees.
Source: U.S. Census Bureau,
www.census.gov/econ/susb/
, accessed on March 2014.
134
Part 2:
Planning
Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
www.MyEbookNiche.eCrater.com

---

SUSTAINABILITY MATTERS
A New Model for Going Green
Darin Budwig, a registered nurse in Glendale, Cali-
fornia, wanted to do the green thing by going solar.
Price, however, was a problem: “I wanted to do
the right thing for the environment,” says Budwig,
“but I really had to ask whether it was worth tak-
ing on $30,000 in debt.” According to Lyndon Rive,
CEO of SolarCity, a provider of solar-energy
systems located in Foster City, California, the
average cost is actually closer to $20,000, but he
understands Budwig’s reservations. “Even those
who really want to make an environmental change,”
admits Rive, “can’t part with $20,000…. The solution
is just too costly for them.”
That’s why Rive revamped his business model in
order to make solar panels affordable for a much
broader range of environmentally conscious consu-
mers. He realized that he could put solar panels on
people’s roofs in much the same way that automakers
put more expensive vehicles in their garages: by leas-
ing them rather than selling them outright. So instead
of borrowing $20,000, Darin Budwig only had to put
$1,000 down and agree to lease a SolarCity system
for 15 years. At a cost of $73 a month, Budwig figured
to save about $95 a month and recoup his $1,000 in
less than a year. Too good to be true? “We hear that a
lot,” says Rive. “But we do save you money, and it
doesn’t cost you a cent to go solar.” With leasing, he
adds, “we can essentially make it so that everybody
can now afford clean power.”
At the same time, however, Rive understands
that price isn’t the only consideration for potential
customers like Darin Budwig. “Widespread adop-
tion,” he admits, “will come if you can take away
the complexity and hassle of installing solar.”
SolarCity thus made things easier for Budwig by
lining up building permits, financing, and tax
breaks. The company also streamlined costs by
using innovative computer automation to custom-
design Budwig’s installation, which was based on
satellite images of his rooftop. SolarCity even com-
piled utility-rate data to estimate Budwig’s return
on his solar investment.
©
Elena
Elisseeva/
Shutterstock.com
Surging energy prices, increased consumer awareness, and the availability of
new technologies have combined to lead many people to explore alternative
energy sources, including solar power. Unfortunately, many of these individuals
are often discouraged when they learn how much solar power equipment actually
costs. SolarCity, though, has built a lucrative business by leasing solar panels to
homeowners. This installer, for example, is putting leased solar panels on the roof
of a home in California.
(
continued
)