Dig Deeper: How Transparent is Your Company?
Building a Values-Driven Business: Treat Your Workers Well
While outwardly your business is driven by your social mission, what happens inside your company is an expression of that mission as well. That means also focusing your passionate energy inward to create a fair and beneficial work environment for your employees. In his new book, The Responsibility Revolution, Hollender describes this principle as striving to be authentically good, by building the mission into every part of your business. "Your employees are one of the key stakeholders at a social enterprise, so make sure that your values are reflected internally as well," says Hollender. It's easy to get carried away with developing your product and everything that you have to do to keep consumers happy. But, if the health of the company is suffering internally, the rest doesn't really matter.
Dig Deeper: How to Build a Culture of Employee Appreciation
Building a Values-Driven Business: Build Your Team
According to Rengaswamy, one of the most important aspects of running a social enterprise is the people you hire to work at your company. While smart hiring is crucial to the success of any small business, there are certain things to look for when hiring for a social enterprise, says Rengaswany. It can often be more challenging for social entrepreneurs to attract high-quality people, because you aren't just looking for someone who can do their job well. You also want to bring the people on board who really understand the mission of your company and believe in it. Those who are eager to build upon your vision are the kind of employees that won't just help your company grow, but the ones who will grow with you. Your challenge as their boss is to make sure they remain motivated and excited about the mission.
Blake Mycoskie, the founder of TOMS Shoes, estimates that he spends about 30 percent of his time on hiring, which has been a crucial role for him especially during the past couple years as the company has experienced rapid growth. The dedication to finding the right people has paid off for Mycoskie. Many of the original interns he hired when he started TOMS four years ago, are still with him to this day, and are now moving into key strategic roles. They have also helped shaped the culture and keep it intact as new people come onboard, Mycoskie says.
Dig Deeper: How to Improve Your Hiring Practices
Building a Values-Driven Business: Educate Yourself
The more involved you are with a community of like-minded social enterprises, the more knowledge you will gain about decisions crucial to your own company. Deborah Nelson of the Social Venture Network recommends finding a group of trusted advisors who can take part in your company in a mentoring capacity. Finding advisors that you admire often comes from joining community networks, especially ones that are geared towards social responsibility in business. You don't necessarily have to find an organization based in your city or state, says Hollender, because many of them, like Vermont Business for Social Responsibility, Social Venture Network, and Social Enterprise Alliance have a wealth of resources on their Websites. It's a good idea to sign up for newsletters from these organizations and keep watch for upcoming networking events. Additionally, Hollender helped start Sustainability Institute, a training portal for social entrepreneurs, which offers a variety of paid online courses geared towards individuals and emerging companies that are getting started with a social enterprise.
Dig Deeper: The Education of an Educated CEO
Building a Values-Driven Business: Market Yourself
This may seem like an obvious piece of advice, but according to Nelson, it's common for social entrepreneurs to get so passionate about their mission that they forget that they also have to be incredibly creative about promoting their products and their business. "You can't rely on social mission to sell your product," she says. "You can have a great product and great business practices, but if you don't promote it, you won't sell anything." If you don't have a dedicated marketing person on your team, there are firms that specialize in doing creative for social enterprises. Some well-known firms to check out are: Metropolitan Group, Free Range Studios, Mission Minded, and BBMG.
Dig Deeper: 30 Memorable Marketing Campaigns
Building a Values-Driven Business: Remember Your Cash Flow
Just as marketing should be integral to your business, turning a profit is just as essential. In order to make a difference through social enterprise, your business has to be financially healthy. According to Nelson, there's a saying in the social entrepreneurship community: "No margin, no mission," and Hollender at Seventh Generation was a case in point. He says the biggest mistake he made when he was first starting out was he focused too much on his mission at the exclusion of profits and, as a result, the company functioned largely as a non-profit for the first 13 years in business. During that time, Hollender was forced to constantly raise additional capital until he was able to balance out the business side with his passion. Keeping your expenses lean and bootstrapping as much as possible at the beginning will help you achieve that crucial balance. You can't afford to be naïve about your numbers, either. Nelson advises entrepreneurs who may not have a knack for the financials to get help from someone who can pay attention to key indicators and report on the trajectory of your profit margins.
