In a world driven by profit margins and bottom lines, a new wave of entrepreneurs is emerging, fueled by a desire to make a positive impact on society and the environment. These visionary individuals are building businesses for good, where the pursuit of profit goes hand in hand with a higher purpose. If you’re considering embarking on this transformative journey, here are some essential steps and principles to guide you in creating a business that not only thrives financially but also leaves a positive mark on the world.
Define Your Mission and Values
There’s a lot of talk about the power of mission-driven businesses. But what does that mean, exactly? At the heart of every business for good lies a powerful mission. It’s the North Star that guides your decisions and actions. Consider the issues that resonate with you deeply, whether it’s tackling climate change, alleviating poverty, or promoting education. Your mission should reflect your values and serve as the driving force behind your business.
In order to build a strong foundation for your business, start by defining what’s important to you and why it matters. Don’t just think about how you want to grow your organization; think about how you want to impact the world around you too!
Once you’ve determined your mission statement, it’s time to create some core values as well. These are specific behaviors that will help guide your team towards achieving goals and staying true to who they are as individuals within the organization.
Measure Impact
Metrics matters! Measuring the impact of your business is critical to success. It helps you understand what’s working and what isn’t, so that you can make better decisions in the future.
In order to measure impact, it’s important to define what success means for your business. This could include metrics like carbon emissions reduced, percentage of people employed full time, or number of communities positively affected. Once you’ve defined these KPIs (key performance indicators), it’s time to start measuring them!
Choose Legal Structure and Governance
The right legal structure will help you to align profit with purpose. This is especially true if you’re a Certified B Corporation, Benefit Corporation, or non-profit entity.
A benefit corporation (B Corp) is a for-profit company that has adopted a legally binding commitment to consider the impact of its decisions on stakeholders, not just shareholders. It is an alternative to the traditional corporate form and offers a new way for businesses to consider how they can make a positive impact on society and the environment. The B Corp certification process requires that companies meet rigorous standards of social and environmental performance, accountability, and transparency.
Benefit corporations are required by law to consider the impact of their decisions on society as well as shareholders. They must also pay taxes differently than other types of companies. That’s because they’re required to make public filings every year that disclose their impact on people and the planet — something that’s not required of other types of businesses.
Engage Stakeholders
The act of engaging stakeholders is a crucial part of any successful mission. Your mission doesn’t exist in a vacuum. Engage your employees, customers, and community in your journey. Foster a sense of shared purpose, and be open to feedback and collaboration. Building a community of advocates around your cause will amplify your impact and create a network of support.
How? By listening closely to what they have to say when they talk about you, your mission and its impact on their lives. Build relationships by asking questions and listening closely to what they say. Take action based on what you hear — whether it’s a suggestion or an objection. And use those interactions as opportunities to educate others about why you’re pursuing your mission and how it benefits them directly or indirectly.
Market Your Purpose
Your brand is what people say about you when you’re not in the room. What do they say? That’s the question every business owner should be asking themselves. The answer will tell you everything you need to know about how your brand is perceived and whether or not it aligns with your business goals.
The good news is that there are plenty of ways to improve your brand perception — especially if you have a strong purpose behind your business. There are many reasons why purpose-driven brands have earned their market share, but here are four key traits that set them apart:
They create connections with consumers by demonstrating authenticity and transparency. Consumers value meaningful relationships with companies that align with their values and make an impact in their communities. This is especially true for millennials — 83 percent want to support companies that make “a positive social or environmental change,” according to research commissioned by LinkedIn and Nielsen.
They stand out from competitors because they don’t focus on profits alone; instead, they’re focused on building a profitable business whose primary goal is making a positive difference in the world. Purpose-driven brands also tend to invest more in employee training and development programs, which leads to higher engagement among employees.
Stay Financially Sound
A financially sound business is better equipped to achieve its mission in the long run. Here are some tips for staying financially sound:
- Create a revenue model that’s sustainable. The best way to ensure that your business will be successful is to build a sustainable revenue model. Consider how many customers you need to generate revenue and what kind of products or services they need to buy. If you can’t figure out how to meet those needs, it’s time to rethink your strategy.
- Ensure that your cost management strategies are effective. If your costs are too high, they’ll eat into profits — but if they’re too low, it may be difficult for you to pay employees and other operating expenses. Take inventory of what you spend money on each month and look for ways to reduce costs where possible.
- Know how much cash flow (or lack thereof) is normal for your business sector. Some industries have slow seasons when customers aren’t spending as much money — but others have consistent demand throughout the year. It’s important to know how much cash flow your industry typically generates so you can plan accordingly when things get tight financially.
Advocate for Systemic Change
As a business for good, your influence extends beyond your immediate operations. Use your platform to advocate for policy changes, industry-wide shifts, and systemic reforms that align with your mission. By championing larger-scale change, you can magnify your impact and contribute to a more sustainable and equitable future.
As the global community faces a multitude of challenges — from climate change to inequality — it’s important to understand how businesses can play a role in tackling these challenges. You have an opportunity to help shape the future by advocating for systemic change through policy advocacy.
In the pursuit of building a business for good, remember that it’s a journey, not a destination. It requires dedication, resilience, and a genuine passion for creating positive change. When profit and purpose are in harmony, the result is not only financial success but also a profound sense of fulfillment and a legacy of impact that transcends generations. Join the movement of entrepreneurs shaping a better future, one purpose-driven business at a time. Together, we can build a world where profit serves a higher purpose.
RUCHI RATHOR Founder & CEO
Payomatix Technologies Pvt. Ltd.
FOUNDER AND INVESTOR | PAYMENTS PROCESSING EXPERT | MERCHANT ACCOUNT SOLUTIONS | WHITE LABELLED PAYMENT GATEWAY | Dreamer, Creator, Achiever, Constantly Evolving
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