Environmentally friendly practices can help your business grow – and grants and low-interest loans are available to help.

John, Lynnwood, Wash.
“I'm looking to make my auto detail shop very green. Are there any government grants that I could get to convert everything to the greenest detail shop you've ever seen?”

By Kathleen Ryan O’Connor, CNNMoney.com contributing writer

Saving energy and reducing waste can have a powerful impact on any small business — auto detailing included.

But it can be expensive and difficult to convert to an all-green operation. Recognizing this, organizations and agencies ranging from your local utility to the federal government now offer a variety of incentives that can help, in the form of grants, loans or rebates.

Your local utility is the perfect first step. A quick check on the Web site of the Snohomish County Public Utility District No. 1 shows several rebate programs to help local businesses to become more energy efficient.

One, for energy-efficient lighting projects, will rebate 70% of the cost, or 100% of the materials cost if the project is self-installed, up to $7,500.

Another great place to look is the Database of State Incentives for Renewables & Efficiency, which has more than 100 listings for green grants, rebates and loans for Washington state alone.

Also check Business.gov, a Web site managed as a partnership by 22 federal agencies, for “green” business incentives. But as always, beware of grants that ask for money upfront and those that simply seem too good to be true.

You will also want to contact your local government-sponsored Small Business Development Center, a great resource for information to help your small business go green. Late last year, the Small Business Administration funneled $500,000 through business development centers in Idaho, Nebraska, Nevada and New York to help fund energy efficiency projects. Your local center might have similar options available.

The Washington state SBDC can be reached via Washington State University in Spokane.

Pamela Evans, the green business coordinator for Alameda County, Calif., helps businesses in her state adopt greener practices. Her program certified its first business in 1997 and now boasts 350 local “green businesses” and a waiting list of companies waiting to be considered for certification.

Even without a formal auditing or certification process in your area, small business owners can easily cast a critical eye themselves, she says. Look at your energy use, water use and waste volume. Few business owners realize that lighting can be as much as a third of their energy use, so it pays to go as energy-efficient as possible.

And it sounds obvious, but make sure you are in compliance with all existing environmental laws, Evans says.

“Say, for example, you are washing cars,” she says. “Most local governments will have regulations to prevent runoff into a creek.”

Thomas Rennie, founder and owner of AutoBella, a green auto detailing business in Portland, recommends starting with the front office.

“We just decided, me and my wife, to start treating our business like our home,” Rennie says.

They began ordering liquid products that come in corn-based, eco-friendly containers that compost easily. They replaced old, energy inefficient lighting and took advantage of an option to buy wind-based power from their local utility. Even the pens they use got an eco-friendly makeover — they are made from cardboard and wood. Today, AutoBella workers wear shirts made from bamboo fiber, an easily renewable resource.

They've since moved on to bigger-ticket items, including a major investment in a $15,000 water reclamation system.

“It’s expensive, but I’m getting a huge amount of business off of it," Rennie says.

He and his wife also committed to using biofuel instead of kerosene, a fix that illustrates how inexpensive some green moves can be. Switching to biofuel cost just $30, Rennie says, for a parts change on their high-pressure washer.

Just one warning, if you're on a diet: "It smells like french fries all the time," Rennie says with a laugh.

Give us your advice: Check out recent “Ask & Answer” questions.

Related links:

How can I cash in on clean energy?

Harnessing solar energy in Senegal

Investing in a green work environment

Tips for switching from contract workers to full time help

Rebecca Fountain, Las Vegas
I have a small business I’m starting in Nevada called Slurry Recycle Solutions that specializes in the development of cost-effective and safe solutions for the construction industry. I’ve been using independent contractors and would like to hire a full-time staff because our business is growing. How should I approach the hiring process?

By Julie Freese, Fortune Small Business contributor
Dear Rebecca: Any manager who has hired the wrong employees knows the high cost of a bad decision. The first step to building the right team for your business is to assess what types of workers and skills you need to be successful.

Every expert we consulted agreed that rushing the hiring process is one of the biggest mistakes managers make. Whether your business succeeds or fails depends more on the quality of employees you hire and less on the product you’re selling or the service you’re providing, says Paul Gibson, vice president of human resources at Mattamy Homes.

Before you begin the hiring process, carry a notepad with you as your perform your daily tasks and record what you do, no matter how small or mundane, says Bill Bartmann of Bartmann Enterprises, an entrepreneur and business coach. This allows you to create a complete list of duties that need to be performed by a future employee and help you draft job descriptions.

Then gather the necessary paperwork (applications and tax documents), research background checks, and brainstorm about what type of work needs to be done and the skills required, says Jo Prabhu, CEO and president of 1800 Job Quest.

To cover your bases, hire a lawyer that specializes in employment law. The lawyer can help you draft a letter of employment outlining expectations as well as salary, which will protect you from potential lawsuits, says Gibson. A lawyer will also make sure that your hiring process is following both national and state laws. Also hire an independent contractor to set up your employee payroll.

Take time to find or create your company’s hiring "wow" factor, says Tom Darrow, principal of Talent Connections. You need to advertise your company and the positions you want to fill in a unique manner in order to stand out on the job boards. Mention unique incentives that will attract potential employees, like free lunches once a month or a casual dress code, he says.

Once you are ready to format and post job descriptions and conduct interviews, talk to the independent contractors you’ve worked with in the past. Ask them to write a description of the job they completed, says Prabhu. It will help you identify particular tasks and skills that need to be highlighted in the job description. Don’t forget to address your expectations in terms of computer skills, education and years of experience, she says.

Employee referrals are the best way to find new candidates, says Darrow. Post job listings on your company website and on any industry specific sites that will attract the right potential employees. Ask the contractors to sit in on interviews, says Gibson. They can help you identify whether or not that particular candidate is the right fit.

The interview process can be confusing – potential employees may tailor their resume or their answers to the position, not their skill set. “Resumes aren’t always authentic. You need to read between the lines," says Praghu. Ask yourself if this person needs a job or wants a job. “The employer has to look for what an employer needs, not an employee.”

Since you’re creating a team of employees that need to work well together in order for your business to succeed, conduct a second group interview with potential employees you want to hire. This will allow you to see what the group dynamics are, says Gibson, and how they respond to each other.

Conduct background checks and check references. It is an important investment, so hire a professional to do it, says Gibson. Understand that checks take two to three days to process and will cost anywhere from $100 to $200 per employee, says Prabhu.

To determine that the salary that you are offering is fair, research your competitors, says Darrow. Ask the independent contractors you’ve been working with if they felt their pay was fair.  And if you decide to reject an application, create and send a standardized regret letter, says Prabhu. This will send across a professional message and maintain your company’s integrity.

Give us your advice: Check out recent “Ask & Answer” questions.

Related links:

To fire or not to fire – the ethics of the layoff

Prepare to hire your first employee

Hiring your first employee

NEK Body Essentials is struggling to draw surfers to its new online store. What's your advice?

Interested in going green in the US or abroad? Start with these resources and talk back here about how renewable energy has helped your business.

In a June 4 Ask FSB, a maker of a fuel additive wants to know how to target environmentally conscious women. How do you identify and market to your target audience? Tell us about it. Post your thoughts.

FSB recommends three resources to check out. Readers, what say you?