This doesn’t mean that making money has fallen out of fashion. It hasn’t — and it won’t. Budgets will always matter because every for-profit entity must break even at the very least. However, being mission-driven and being profitable aren’t mutually exclusive concepts. They can fuel each other in measurable and lucrative ways.
Patagonia comes to mind as a stellar example of a company that is mission-driven with core values sparking systematic gains. For decades, the outdoor apparel and gear retailer has embraced sustainability and bucked conventional “profits over people” practices. For more than half a century, the company has remained steadfast in its purpose. It has consistently grown to the point where its profits enable it to fund its charitable initiatives.
Of course, like many purpose-driven organizations, Patagonia operates within the B2C space. And if you’re leading a B2B company, you may feel like it’s harder to grow based on a purpose. One way to make this goal possible is to serve local schools and nonprofits.
The B2B corporation as a community cornerstone
Nearly every community has unmet needs that purpose-minded companies could fill. By closing those gaps, your company can position itself as a supportive and positive force. As your social impact expands, you can leverage your mission-driven activities, as noted below, to foster smart growth.
1. You can publicize your purpose-based activities.
There’s nothing wrong with being vocal about what you’re doing to support your community. The more you educate others, the more of a competitive advantage you’ll have. Remember: A significant proportion of buyers are willing to invest in companies that give back.
For example, a report conducted by PlaygroundEquipment.com, a commercial playground equipment seller, reveals the measurable value of introducing children to nature. The company cites a study that shows kids who play outdoors exhibit a five percent improvement in memory skills compared to their peers who are unable to enjoy outside spaces. Additionally, knowledge workers are often drawn to cities and suburbs that offer convenient access to parks and green recreational facilities.
Knowing this information, you may decide to construct a public playground on your business property, especially if it’s conveniently and centrally located. Alternatively, you may want to fund the design, installation, and upkeep of a playground space at a local school or park. Regardless of which route you choose, you can highlight your decision to clients, employees, and the general public using statistics like the one above. This will help showcase your intentions and may attract more interest from like-minded clientele, thereby increasing your revenue streams.
2. You can reduce your turnover.
Though it’s hard to pinpoint precisely how much it costs to replace an existing employee with a new worker, you can be sure it’s pricey. However, when you’re a mission-driven business, you have a better chance at retaining employees longer and keeping your workforce happier.
As Gartner points out, 82% of people want to be “seen” by their employers. You can make this kind of experience possible by ensuring that you hire employees who are motivated by your central, mission-driven goal. That way, they can find a way to connect not just with your business but with its greater reason for existing.
As a result of building these stronger ties, your profitability should increase, as you’ll spend less time sourcing, recruiting, and onboarding replacements. Plus, you may find that your employees feel prouder that they’re a part of your team. After all, it can be rewarding to be a part of an organization that continuously invests its time, energy, and resources toward educational institutions and community entities.
3. You can introduce your company to new clients.
The more you spread your wealth across your service region, the more publicity you’ll get. You can’t underestimate the value of being a known brand in your area, particularly as a B2B company. People tend to trust businesses they know and seek bids from them first.
Forrester explains that around three out of four B2B buyers put emphasis on a brand’s name recognition. This shouldn’t come as a surprise: Shoppers will often do likewise when purchasing everyday household products. Rather than trying a new brand, many will opt for the one they already use.
Think of it this way: Every time you sponsor an inclusive swing set at a nearby park or contribute sports equipment to an elementary school, you’re building bridges. Though people won’t necessarily recognize your brand overnight, they’ll begin to see you as a known business. At the same time, your company will be associated with positive enhancements in your area. And that’s a winning strategy for making inroads with warm leads.
Even if your business wasn’t founded with a specific purpose or mission, you can create one this year. It’s never too late to determine what makes your company “tick” — the “Why?” behind your work. Perhaps ironically, by reaching outward and looking beyond mere dollars, you’ll likely find that you open a pipeline of incoming profits.
Photo by Rineshkumar Ghirao
