6 days ago
How To Build A Million-Dollar Business While Solving Global Problems
Wayne Elsey, Founder & Head Coach/CEO, The Funds2Orgs Group.
There was a time when I thought I had to choose between social good and success in business. Then came several natural disasters that led me out of the corporate world and into the global for-profit social enterprise space. As a guy in the shoe business, I made the connection between shoes and the reuse economy. In other words, I figured out how to boost local communities, get used quality shoes into the hands of people in developing nations and support sustainability.
For others, solving global social issues could be different, of course. But here's the thing I've learned in our social enterprises: The bigger the problem, the more profitable the brands have become. There are several reasons for this, of course. It's taken a lot of time and effort, but I'd like to share what has allowed our team to do good and let the brands expand.
The Myth Of Choosing Sides
For generations, there's been a false narrative that people must choose profit or purpose because they're on opposite ends of the spectrum. Not true. In my view, they're complementary forces, and I'm not alone in that mindset. I remember when the idea of corporate social responsibility (CSR) was more in words than action, and now, even local businesses on Main Street take CSR seriously.
The fact of the matter is that leaders who focus on profit and purpose provide immense value. For instance, in our social enterprise brands, we connected local community needs in the United States, reducing waste and supplying small businesses in developing nations with inventory to sell the shoes we procure for them through our partners. The connections we made provided global value, and our brands have profited.
If you're someone who wants to get up in the morning with a purpose and for profit, you can do it. The magic happens when you stop and think. I know we're all rushing around, but the most significant and crucial decisions in life and business don't happen in a rush. They need to marinate in the mind, and the person needs to truly own it. So, ask yourself what problems keep you up at night because they likely keep others up at night, too. Start there.
Scale Through Systems, Not Just Heart
The key to combining profit and purpose is to find the sweet spot where they intersect with market demand. In other words, for our brands, there was a need in the local American markets to get funds into communities. There was also energy around sustainability and the climate crisis, and there was an understanding that sustainable solutions were necessary for people in developing nations. That was the runway where we took off.
It's essential to realize that brands take off when they scale. Early on, I spent hours at the kitchen table where our first social enterprise brand was managed, looking into every aspect of the business with the team. More than a decade later, from our global headquarters, I still spend time almost daily on key areas: sales, marketing and operations. Moreover, thanks to technology, we measure everything from revenue growth to partner satisfaction and the amount of waste we save by redirecting shoes into the reuse economy.
The Partnership Advantage
Aside from the scale of the system within our brands, there's another essential aspect of our social enterprises. We consider our customers, small business partners in developing countries and our logistics team as partners. When you view people and entities as partners, you're working on fulfilling the same purpose together. That motivates people, and people realize that we operate beyond profit for purpose—together.
For instance, we don't just ask for inventory when approaching large retailers and leading marathons for our sneaker reuse brand. We talk about creating a partnership whereby we help them leverage their brands, solve a waste disposal problem, lower the environmental impact of waste on the planet and help people worldwide with a hand-up. The very idea of a partnership makes all of our constituents realize we're looking for mutual win/win action and success.
Your Problem Is Your Opportunity
A positive outlook is another overlooked necessity to build a million-dollar business. Challenges can't be wholly insurmountable. Take environmental sustainability and the climate crisis, for instance. To some, we're past the point of no return. I don't choose to look at it like that, and neither does my team. We continue to find opportunities to do better for the environment and people.
The business leaders who will create the next generation of successful small and medium-sized businesses don't focus on loss. They focus on opportunities, and with the idea of purpose, profit and making a difference, there's plenty of opportunity. Social challenges are simply market inefficiencies waiting to be solved. So, if you want profit and purpose, start where you are, with what you have and look to solve a market inefficiency—with partners.
Forbes Business Development Council is an invitation-only community for sales and biz dev executives. Do I qualify?
