The mindset of mission-driven entrepreneurs might best be described as “a rising tide that lifts all boats.” Rather than starting a business for the sole purpose of generating profit for themselves and investors, these business visionaries see companies as part of a community’s fabric.
An in-depth look at almost any company articulates how it impacts employees, geographic location, wealth, poverty, the environment, and wide-reaching social issues. The best mission-driven entrepreneurs understand they can be an agent for positive change. In fact, 181 CEOs signed on to a Business Roundtable statement of purpose supporting mission-driven companies.
“Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity. We believe the free-market system is the best means of generating good jobs, a strong and sustainable economy, innovation, a healthy environment, and economic opportunity for all,” it states.
Core Principles of a Mission-Driven Business
Industry leaders and innovators interested in starting a business based on ethical principles are discovering key advantages to the mission-based model. The notion that corporate decision-makers and a dedicated staff can more effectively resolve social woes better than government bureaucracies resonates with everyday people. These rank among the core principles entrepreneurs build their mission-driven businesses on.
Vision Articulation
Expressing an organization’s core principles doesn’t need to be complicated. By stating the vision behind the operation in clear, easy-to-understand language, talented people will desire to come on board. The same holds true of the customer base, with consumers and industry partners more positively inclined to work with your operation. Keep in mind that it’s not just what you say. It’s how you make people feel.
Full Transparency
Information in a traditional corporate model is typically revealed on a need-to-know basis. Investors and shareholders usually receive updates about profits and losses, leaving front-line workers in the dark. A mission-driven operation effectively stands that model on its ear. Employees at every level understand whether the company is thriving or struggling. Growth tends to prompt workers to seek higher wages, a threat to old-world corporations. The mission-based model presses forward with fair and equitable pay scales.
Complete Accountability
Some old-school operations have two distinct terms for errors. When hourly wage employees make one, it’s called a “mistake.” When someone from the management team errs, it’s called an “oversight.” A mission-driven entrepreneur insists upon one set of rules and terms. Based on the idea everyone is fully committed to the process, mission-driven operations thrive on top-to-bottom acknowledgment of successes and failures. That’s largely because people who stumble are met with support rather than disappointment. Mission-driven business leaders see setbacks as teachable moments, nothing more.
Career Growth & Ascension
It’s not uncommon for companies to hamstring the growth of talented employees. The conventional thinking is the quicker they accumulate knowledge and skills, the sooner they will transfer to another company willing to pay higher salaries. This approach sets up an internal tension that proves counterproductive for all involved. Entrepreneurs who employ the mission-driven mindset prefer to help staff members grow and prosper. The idea that a company leader serves as a mentor, with the understanding employees will use skills to further their own careers, inspires loyalty. Not surprisingly, mission-based startups often enjoy lower attrition rates because it’s not always about the money.
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Clarify How Your Mission-Driven Startup Functions
It’s essential to keep in mind that mission-driven organizations are not exempt from economic realities. Whether doing specific good works, or acting as an example of ethical business practices, requires profit generation. Stakeholders may be willing to forgo high wages or peak return on investment. But everyday people still, as the saying goes, “need to pay the mortgage.” Defining operational success typically requires mission-driven visionaries to clarify the following two distinctions.
Difference Between Mission and Purpose
Although some use the terms mission and purpose interchangeably, it’s critical for business leaders to know and articulate the differences. A mission defines the reason for starting a business, which involves a specific goal. Although the difference may seem subtle, purpose speaks to the reason for having the goal in the first place.
Perhaps the most straightforward way to understand the difference between mission and purpose is to look at Toms Shoes. Founded by Blake Mycoskie, the international corporation’s mission is to sell a variety of footwear and eyewear products. Fulfilling that mission allows the operation to further its purpose, not necessarily generating high profits. Instead, Toms’ purpose is to provide free shoes to impoverished people across the world. By understanding and clarifying the difference between mission and purpose, team members can make more effective decisions.
Should Entrepreneurs Start a Non-Profit or For-Profit?
Entrepreneurs sometimes believe that a mission-driven business must be founded as a non-profit. Nothing could be further from the truth. Toms, for example, ranks among the more successful mission-driven operations. It continues to operate as a for-profit operation since it was founded in 2006.
While the purpose may be to carry out good works, they are not usually charities. In fact, being part of the profit-driving economy offers critical advantages to mission-driven operations. Consumers may be willing to pay more for goods and services, knowing their money helps those who are less fortunate, protects the environment, or supports social justice. As a for-profit, entrepreneurs can also position their organization for success in terms of employee salaries, healthcare benefits, and retention. With exemplary leadership, mission-driven companies can deploy a winning formula.
Key Elements of Mission-Driven Startups
Starting a business based on mission-driven principles tasks business leaders with integrating critical concepts not always present in traditional corporations. The laudable social betterment ideas mustn’t be simply talking points used like so many clever marketing schemes. Visionaries starting a business in this niche must walk the walk on the following.
Community: A mission-driven organization typically positions itself as part of a community. This may include the physical location where it does good works such as clothing donations, supports area causes, or hyper-local issues. Community can also be understood broadly to include a group of people faced with challenges. The point is that the operation should be able to indicate the community it supports and why.
Authenticity: Prioritization of everyday life experiences is a cornerstone of the mission-driven company. This can be something of a stumbling block for entrepreneurs who are starting a business after working in traditional profit-and-loss models. Authenticity is not simply a matter of writing a mission statement and parroting the words. From the CEO to department supervisors, real-life stresses and concerns must be heartfelt. Only genuine compassion for working people and the purpose they serve can translate to the positive environment so hard to find in today’s corporate world.
Narrative: The money generated from selling products and services is necessary to fulfill a mission-based company’s purpose. To generate higher profits and onboard talented professionals, it’s crucial to engage in storytelling. Whether through a mission statement, promotional YouTube videos, or organic word-of-mouth, people are more inclined to participate when they grasp the idea. Storytelling has a way of driving familiar narratives that consumers and industry partners embrace.
At the end of the day, a well-thought-out and implemented mission-based operation results in a naturally positive culture. Team members enjoy a common bond and desire to fulfill the company’s mandate. Success, no longer measured by the size of a paycheck, proves inspiring when staff members see good works come to fruition.
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Examples of Mission-Driven Entrepreneurs
Starting a business in a mission-driven mold does not necessarily guarantee success. By that same token, entrepreneurs who founded startups generally take a great deal of pride in knowing they provide good-paying job opportunities in a purposeful fashion. These people launched mission-driven companies that have radically changed people’s lives.
John Mackey
The Whole Foods founder shined a light on the inherent problems of groceries. Sometimes laced with pesticides and unnatural elements, food had grown increasingly less wholesome. Championing organic products and a chain of supermarkets to distribute them was a game-changer for many. His mission-driven operation seemingly forced other supermarket chains to include organic products and furthered sustainable farming.
How to Start a Mission-Driven Company
Starting a business with a mission in mind is not unlike other organizations. Entrepreneurs will be tasked with researching products and services and understanding their viability in the marketplace. A business plan is generally an essential part of launching a startup, as well as selecting the best corporate structure to minimize tax liability and exposure. It’s also important to take a long look at the support each state provides, such as access to small business loans and incentives. Starting a business that touches people in a positive way can be a rewarding way to earn a good living.
Growth Hackers is one of the top growth hacking agencies helping businesses from all over the world grow. There is no fluff with Growth Hackers. We help entrepreneurs and business owners start a successful mission-driven entrepreneurial adventure, increase their productivity, generate qualified leads, optimize their conversion rate, gather and analyze data analytics, acquire and retain users and increase sales. We go further than brand awareness and exposure. We make sure that the strategies we implement move the needle so your business grow, strive and succeed. If you too want your business to reach new heights, contact Growth Hackers today so we can discuss about your brand and create a custom growth plan for you. You’re just one click away to skyrocket your business.
