“Progress is impossible without change, and those who cannot change their minds cannot change anything.” —George Bernard Shaw
As humanitarian entrepreneurs with various roles and responsibilities, we have a unique opportunity to tap into our spirituality and use our imaginations to create a better world for future generations by learning from the mistakes of the past. While each of us may have a different purpose, we must recognize and appreciate everyone's individual path and role in creating positive change. Some may be focused on raising conscious children, while others may be reflecting on how to create a more sustainable business.
It's important to approach this time with a cooperative mindset rather than one of separation or competition. We should strive to understand and honor each other's differences of opinion and perspective rather than judging or communicating violently. Through this understanding, we can bring opposite perspectives together and create a more harmonious world.
In this chapter, I will explore how the split between purpose and profits, or capitalism and communism, exacerbates this division.
Capitalism is an economic system where individuals control the economy to make a profit. This system emphasizes individual rights, free markets, and competition. In contrast, communism is a social system where the community controls trade and industry and wealth is distributed based on an individual's ability and needs. In a communist system, the government owns everything; there is no class distinction; and all individuals work towards a common goal.
Both communism and capitalism organize the distribution of wealth. However, the future of the world economy is dependent on finding a way to bring these polarities together without losing our humanity. In this chapter, I will explore practical ways to accomplish this.
As an entrepreneur, my observations and inner inquiry have led me to realize that the identity behind capitalism is often associated with those who are money-hungry, seeking profits, and focused on material wealth. Conversely, the identity behind communism is often associated with non-materialistic beggars who are deeply connected to their inner spiritual selves, and this can come at the detriment of their having the greatest impact they could. I believe we need to learn how to balance both.
From an economic perspective, the split between purpose and profit, according to my own explanation, would be best described as the difference between a communist and capitalist system. I prefer to use the words purpose and profit, to describe the difference between them both.
Profit-led companies, also known as profit-driven or profit-oriented companies, are enterprises primarily focused on maximizing financial returns for their shareholders or owners. While there is an increasing emphasis on purpose-driven and socially responsible businesses, profit-driven companies remain prevalent in various industries.
Profit-led companies prioritize financial performance above all else. Their primary goal is to generate profits and deliver returns on investment to their shareholders. Key performance indicators such as revenue growth, profitability ratios, and shareholder value creation drive decision-making and strategic planning within these organizations.
Profit-led companies are focused on acquiring and retaining customers to drive revenue growth. They prioritize sales and marketing efforts to attract new customers and increase market share. Their strategies often revolve around pricing, cost management, and efficient resource allocation to optimize revenue generation and profitability.
Achieving and maintaining high profit margins is a priority for profit-led companies. They emphasize cost control measures, operational efficiency, and productivity improvements to optimize their bottom line. These companies often implement lean management principles, cost-cutting initiatives, and supply chain optimizations to reduce expenses and increase profitability.
Profit-driven companies aim to enhance shareholder value and deliver attractive returns on investment. They allocate resources and make strategic decisions that maximize profits and shareholder dividends. Financial metrics such as return on equity (ROE) and return on investment (ROI) guide their performance evaluation and determine the allocation of profits.
Profit-driven companies often operate with a short-term orientation, focusing on quarterly or annual financial results. Meeting or exceeding financial targets within specified timeframes is a key driver of decision-making. This approach may prioritize immediate financial gains over long-term sustainability, innovation, and social impact.
Profit-led companies operate in competitive markets and strive to establish a strong market position. They invest in market research, product development, and branding to differentiate themselves from competitors. These companies often prioritize market share growth and maintaining a competitive advantage to drive profitability.
Profit-led companies maintain a strong focus on investor relations and financial transparency. They regularly communicate with shareholders, financial analysts, and the investment community to provide updates on financial performance, strategic initiatives, and the future outlook. Transparency and accountability are essential for maintaining investor confidence and attracting capital.
In contrast to profit-led companies, purpose-led or social enterprises Entrepreneurship is driven by a commitment to creating positive social or environmental impact along with financial sustainability. These enterprises prioritize their purpose and mission, leveraging business principles to address societal challenges.
Purpose-led or social enterprise Entrepreneurs are guided by a clear and compelling social or environmental mission. Their primary objective is to address a specific societal issue or contribute to the betterment of communities and the planet. This mission serves as the driving force behind their business activities and decision-making. For example, for us, at the forefront of our vision is a desire to help children get rescued from child sex trafficking, provide financial empowerment and education to women, and provide fresh drinking water and food to those without it.
Social entrepreneurs place a strong emphasis on measuring and evaluating their social impact. They develop metrics and evaluation frameworks to assess the effectiveness of their initiatives and demonstrate the tangible outcomes they achieve. These entrepreneurs value transparency and accountability in reporting their impact to stakeholders and the broader public. For example, for us, based on different activities within our business, we then have a different measurable social impact that we provide to the world when that activity happens. From writing a comment in the chat at an event, registering for an event, or even purchasing a program.
Purpose-led entrepreneurs seek innovative and sustainable solutions to address social and environmental challenges. They identify gaps in existing systems and develop creative approaches to solving these problems. By embracing innovative technologies, business models, and partnerships, they strive to create sustainable and scalable solutions that can have a lasting impact. For example, forming strategic partnerships with people your clients see before or after you and who have similar values or visions of the world
Social entrepreneurs recognize the importance of collaboration and engaging with a diverse range of stakeholders. They actively involve affected communities, nonprofits, government entities, and businesses to co-create solutions and leverage collective expertise. By fostering partnerships, social entrepreneurs build a network of support, resources, and shared knowledge to amplify their impact.
Purpose-led or social enterprise Entrepreneurship goes beyond financial gains. These entrepreneurs adopt a triple bottom line approach, considering the social, environmental, and financial aspects of their business. They aim to achieve a balance between social impact, environmental sustainability, and financial viability, valuing each aspect as critical for long-term success.
While social impact remains at the core of their work, purpose-led entrepreneurs recognize the need for sustainable revenue generation to ensure the longevity of their initiatives. They develop revenue models that align with their mission, such as earned income, grants, impact investments, or a combination thereof. This allows them to achieve financial sustainability while reinvesting profits into their social or environmental goals.
Purpose-led entrepreneurs prioritize ethical practices and transparency in their operations. They adhere to strong ethical standards, fair trade principles, and responsible business practices. They promote transparency by openly communicating their mission, impact, and financial performance to stakeholders, fostering trust and accountability.
Purpose-led or social enterprise entrepreneurship represents a growing movement that seeks to combine business acumen with a commitment to positive social or environmental impact. These entrepreneurs are driven by a clear mission, embrace innovative approaches, and collaborate with stakeholders to create sustainable solutions. By measuring impact, adopting a triple bottom line orientation, and operating ethically and transparently, purpose-led entrepreneurs strive to build a better world while ensuring their ventures' long-term viability. As society increasingly values purpose-driven businesses, the characteristics of purpose-led or social enterprise entrepreneurship play a vital role in shaping the future of entrepreneurship.
If you've been inspired by the idea of aligning your company's purpose with its profitability, you may be eager to explore how to put this concept into action.
You might be asking yourself, "Where do I begin?". It's a valid question, and we're here to provide you with the answers. We understand that transitioning to a purpose-driven approach requires a shift in mindset, strategies, and practices. It's about finding the sweet spot where both purpose and profit can thrive, creating a positive impact on society and the bottom line.
In the following sections, I will outline practical steps and actionable insights that can help you embark on this transformative journey. From defining your company's core values and mission to implementing sustainable business practices, we will explore various strategies that promote the coexistence of purpose and profit.
I believe that practicality is key. The concepts I discuss here are not just theoretical musings; they are tangible steps that you can start implementing today. Our goal is to empower you to take immediate action and witness the positive changes that can unfold within your organization.
So, let's dive in and explore practical ways to merge purpose and profit. By embracing this paradigm shift, you can unleash the full potential of the global economic landscape and create a thriving business that makes a lasting difference. Get ready to embark on a journey of transformation and discover how purpose and profit can coexist in perfect harmony.
Identify the social or environmental issue that your business aims to address. Develop a clear and compelling purpose statement that reflects your commitment to making a positive impact. Ensure that your purpose aligns with your business activities and resonates with your stakeholders. To support you with this, it could be a great idea to go to the UN's 17 sustainable goals, and at the end of this chapter I have provided you a link to our partnership B1G1, so you can sign up in a few clicks and link your business activities with these 17 goals to start living from a purposeful and profitable business model today.
Embed your purpose throughout your business strategy. Ensure that every decision, from product development to marketing and operations, reflects your commitment to your purpose. Align your goals, metrics, and key performance indicators with both financial and impact targets. Again, the B1G1 partnership at the back of this book will help you easily do this. For example, you could link sales and marketing activities like registering for your events, masterclasses, or purchasing from you to a cause.
Identify the stakeholders who are affected by your business and can contribute to its success. Engage with these stakeholders to understand their needs, perspectives, and expectations. Collaborate with them to co-create solutions and build partnerships that align with your purpose. When you are creating partnerships with people you purchase from or who do business with you, get them enrolled in your purpose and profit story from the get-go, and then invite them to be part of it too, so their business growth creates a ripple effect too.
Integrate sustainability and ethical practices into your business operations. Consider sustainable sourcing, waste reduction, energy efficiency, and responsible supply chain management. Adhere to ethical principles in all aspects of your business, including fair labor practices, diversity and inclusion, and transparent governance. By becoming more self-aware of all decisions in the company, this can become a unique point of difference and have a larger impact on the world at the same time.
Develop metrics and evaluation frameworks to measure and communicate your social and environmental impact. Use quantitative and qualitative data to track progress towards your purpose-driven goals. Regularly report your impact to stakeholders, fostering transparency and accountability. Be sure to include this regularly in your customer experience journey, for example, a certificate of gratitude with the social impact that they helped to create by purchasing or doing that particular activity.
Empower your employees to embrace and contribute to your purpose. Foster a culture that aligns with your values, emphasizing the importance of purpose-driven work. Provide opportunities for employees to contribute to social and environmental initiatives and recognize their efforts to reinforce the connection between purpose and profit. Create a staff team-building day, get everyone to choose a project, and create shared goals to help everyone move towards these goals and link them to KPIs.
Educate your customers about your purpose and how their support contributes to a positive impact. Communicate the value they receive from your products or services and how it aligns with their own values. Engage them in meaningful ways, such as cause-related marketing, customer co-creation, or supporting community initiatives. Rather than giving them luxurious gifts, you could see if they wish to change gifts or bonuses to instead have an impact on the world. Paying in full for promotions or offers could be linked to certain impacts that are closest to their hearts.
Explore opportunities for impact investment or funding from organizations aligned with your purpose. Seek out impact investors, venture philanthropy organizations, or grants specifically focused on businesses that combine purpose and profit. These sources of funding can provide both financial resources and strategic guidance.
Continuously assess and improve your efforts to merge purpose and profit. Seek feedback from stakeholders, measure the effectiveness of your initiatives, and adapt your strategies accordingly. Embrace a learning mindset and iterate on your business model to enhance both impact and financial sustainability.
In the midst of transformation, when the winds of change beckon me towards a new horizon, doubt, fear, and insecurities often conspire to hold me back. The comfort of familiarity whispers in my ear, tempting me to remain within the confines of my current world. But in those moments, I am reminded of a profound concept that reverberates within my soul: regret.
The echoes of regret serve as a poignant reminder of the brevity of our time on this planet. They stem from the stories of those who have reached the end of their journey, their hearts heavy with unfulfilled desires. Among them, Bronnie Ware's book, "The Top Five Regrets of the Dying," has left an indelible mark on my spirit.
As I reflect on the regrets of the dying, their words serve as a clarion call to action. Their shared wisdom implores me to embrace the courage to forge a new path, to seize the opportunities that lay before me, and to shed the limitations that hinder my growth. Their tales remind me of the importance of living a life free from regrets.
The first regret that resonates deeply is the lament of not having the courage to live a life true to oneself. How often do we allow the expectations of others, societal norms, and the fear of judgment to guide our choices? But as the echoes of regret beckon, we are reminded to honor our authentic selves and to pursue our passions and dreams with unwavering conviction.
The second regret speaks of the desire to work less and spend more time with loved ones. In the pursuit of success and material wealth, it is all too easy to lose sight of what truly matters—our connections, our relationships, and the moments of shared joy. The regrets of the dying implore us to prioritize the people who bring meaning and love into our lives.
The third regret pierces the heart with the realization of unexpressed emotions. How often do we stifle our feelings, burying them deep within, only to regret the words left unspoken? The tales of the dying remind us of the importance of vulnerability, of opening our hearts, and of sharing our love, gratitude, and appreciation without reservation.
The fourth regret underscores the longing to have maintained friendships. In the relentless pursuit of progress, we often neglect the bonds that once brought us solace and companionship. The regrets of the dying urge us to nurture and cultivate meaningful connections and to invest time and effort into the relationships that enrich our lives.
And finally, the fifth regret reflects the yearning to have embraced happiness as a choice. How often do we allow external circumstances to dictate our joy? The regrets of the dying compel us to seize each day, to find happiness in the smallest of moments, and to embrace gratitude as a guiding force.
So, as I stand on the precipice of change, I am reminded not to succumb to the grip of regret. I am called to embrace a life true to myself, to prioritize love and connection, to express my emotions without hesitation, to cultivate friendships, and to choose happiness as my unwavering companion.
Let us not leave this planet with regrets etched in our souls. Instead, let us forge a path of courage, authenticity, and love. May we live each day with purpose, filling our hearts with experiences that bring us joy, fulfillment, and a profound sense of meaning. The time is now, my friend. Embrace life, and let regrets be but a distant echo in the winds of change. I hope this is a message you can cherish forever.
In gratitude to our partnership with B1G1, you can now easily embed purpose and profit into your business in just a few clicks!
It's my real pleasure to invite you to join the B1G1: Business for Good Initiative. B1G1 helps businesses like ours give back in powerful new ways and do so much more for the world around us. Check them out here: http://bit.ly/exploreb1g1.
If it sparks your interest, please let me know, and I'd love to share more. And if you do choose to join B1G1, please use my unique code, BM16214.
When you join through our code, 50 days of access to education are given to children around the world.
This is an excerpt of the best-selling book by Samantha J. called "Illuminator; click here for the full copy: https://www.iamsamanthaj.com/books
“Luxury business models provide the profitability for entrepreneurs, to have the time and freedom for their love and family life, so they are deeply fulfilled, as they leave the largest social impact on the planet”. - —Samantha J.Read More