5 days ago
How Setting Aside Revenue For Good Helps Your Business Mission Grow
Ryan McFarland, Founder & CEO of Strider Bikes.
Most businesses want to support causes they believe in and make a positive impact beyond their bottom line. As altruistic as we'd all like to be, we often put up roadblocks that stop us. I find the biggest roadblock to be that we see giving as an afterthought. It's something we consider only when profits allow, or when a pressing need arises. That's a reactive exercise and it will never allow you to truly help people or work on the projects you're passionate about—because there's always an excuse for why next month might be a better time to give.
If you really want to commit yourself to giving, you need to turn your company's giving mission proactive. Carve off a percentage of your revenue for good—no questions asked, no hesitation, no second-guessing. That may be frightening, but I can tell you from experience that it will strengthen your operation and bring your business closer to its mission statement. The first (and most challenging) step is committing to your new revenue reality.
A few years ago, I was reading a book called Blue Like Jazz, by Donald Miller. In one chapter, Miller describes a friend who took a percentage of his paycheck, committed it to God, put it in a jar and set it aside strictly for doing good. When his friend wanted to buy a new motorcycle, Miller suggested he dip into the jar on his dresser. But he couldn't. Why? He didn't consider that money his own. Yes, it was in his home, but it was designated for making the world a better place.
That concept stuck with me. First, I obviously sympathized with wanting that new motorcycle! I got into the business of making balance bikes for kids because I just loved the idea of sharing my love of two wheels with my kids. Then I got so passionate about it, I wanted to share that love with kids around the world. But the more I focused on making a better bike and selling it, the farther I got from that original mission. If I wanted to teach every child how to ride, I had to go farther than convincing parents to just buy my bikes. I had to commit to more impactful projects.
Not long after reading that book, we made a powerful decision to commit 1% of our monthly gross revenue—before cost of goods sold, before expenses, before knowing if there would even be any profits—to charitable initiatives that were core to our mission. That money, we thought, is no longer ours. It belongs to our giving mission. In the years that followed, we've gotten closer to what I always wanted our business to be. We've donated bikes to hospitals, custom-modified bikes for kids with height and limb differences, funded programs that teach kindergartners how to ride in PE class and more.
The key that unlocked all those possibilities was the simple act of committing 1% of our revenue to a proverbial jar and accepting that it wasn't our money. It made giving a consistent, sustainable part of our business. More importantly, it made our giving more proactive. We no longer had to decide every month or every year whether we 'could afford' to give. It just became part of how we operated.
You've already taken the step to bake giving into your budget, so treat your giving mission the same way you treat other parts of your business. Develop grand plans for your giving mission and map out the steps you need to get there. What revenue goal do you need to hit so that your 1% can help you reach your most lofty charitable goals?
This has two advantages. First, if you start by thinking small, you have to continuously plan your next big giving project as your capacity for giving grows. Second, your big dreams give your team a compelling reason to help the business grow. Now, you're not just trying to grow your bottom line. You're pushing everyone toward an exciting mission-driven goal. Somewhere along the line, we've all seen some version of the sales goal thermometer. What if you could replace that number at the top with your team's most coveted charitable mission? The human element of your goal is much more compelling than any monetary incentive. In the end, you'll push your team to do good and your business will benefit as a natural consequence.
Since launching our program—the Strider Rider Fund—we've been able to support more projects because our team has been invested in those giving missions. They help us brainstorm our big ideas and they feel connected to making those ideas a reality, which means they're also more connected to our brand's mission—to teach every child how to ride a bike. Because that money is always there, giving back is never stressful. Even if we don't hit our #1 goal, we can always find an impactful project within our roadmap. Then we get to look at this growing fund and dream about how we can use it to make an even bigger difference.
This single decision to set aside a percentage of our revenue changed the way we give. It has allowed us to give literally millions to the causes we love, and I believe it can change the way businesses everywhere approach doing good. If you really have a passion, especially one that's in line with your business mission, choose a percentage and stick to it. Set it aside, and let it become part of the DNA of your company. Don't leave it up to emotion, timing or financial ups and downs. Carve it off the top, and then run your business knowing that what's left is what you have to work with. You'll be amazed at how much that tiny percentage allows you to accomplish, and how it transforms the way you and your team approach your business.
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