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Shifting to a Profit for Purpose Business Model

When a business is just getting going your main goal tends to be to get through the kinks and problems new businesses go through. Then it is about making a profit while you meet the needs of your clients or customers. Today there is a move towards something more than just focusing on making money. Some, with the help of experts, are shifting their goals to a profit for purpose model. The money is not the final goal or result of the business but a tool to use, to achieve something with.

An early example of such a business model is looking at the international aid organization known as Oxfam. It opened a charity shop first in the later 1940s and the money earned supported its global efforts to end injustice and poverty. Other names this model is known as include;

  • Profit for a purpose

  • Social Purpose Business

  • Social Ventures

  • Profit with purpose

  • Social Enterprise

  • Triple Bottom Line Business

  • Social Entrepreneurship


As can be seen by the Oxfam example, a charity or business can be run to make money that is not only used to enhance the performance of the business but also then use some or all of profit on a mission of some kind.  A small business is just as able to shift to a profit for purpose model. That mission can be social in nature, environmental, community-based or something else. This is not the same as companies that donate to charities or have an add-on marketing ploy they use. The concept of economic and social value must be at the core of the business plan.

Changing goals from both sides

Both sides of the ideal are making moves towards profit for purpose aims. Businesses that were once all about the profit and then also organizations that are non-profit, like various charities, are realizing they can make money and move more towards a business model and use the profit made in their endeavors. Social entrepreneurs are about using the best method to be able to then meet their social mission.

People have different reasons for making the change and sometimes people need support to do it. It takes a focus change with different orientations, different aptitudes and a change in the type of opportunism a business owner has. There needs to be strong innovation and a willingness to explore outside of the box where your small business can fit in this model.

Summary

More companies and businesses are realizing that you can make a profit and make a difference too. More people, when looking for work, are looking at businesses that have ethical practices and a purpose within society. There are also, as a result, more venture capitalists investing in companies that are profit for a purpose in nature. This is a great thing for the world as there are plenty of places where help and support are needed.

 

 
2019-07-27 17:13:41, views: 56, Comments: 0
   
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