Why FOR profit models can help more people than charity.

If you have been following me for awhile, you know that I am a big believer in social entrepreneurship but if you are like most people, you may think that means non-profit. It can, but for-profit business for the purpose of solving a social problem can actually help more people than charity.
“How can that be? “you might ask.
First, you need to understand that people who run non-profits DO actually make money. In fact, the director of a not-for-profit foundation frequently draws a six figure salary. The non-profit part refers to what the organization actually nets AFTER salaries and expenses are paid and the rest is used to further the cause.
When a for-profit business is set up as a social enterprise, there is a multiple bottom line with the intention of solving a social issue and making a profit. But, because it operates on business principles, the owners only make money if the the business is successful at the helping component as well as profitable.

For comparison, let’s look at this example. If I set up a non-profit to buy hearing aids for  hearing impaired children, I would need to raise funds. I’d start by asking everyone I know for donations and possibly apply for some grants. Once I’d exhausted those sources, I would constantly be scrambling for funds to help the people who had come to depend on my for aid. But, if I set up a a for-profit social enterprise, I would be able to help more children because it would be based on business principals which means making sure there is a continuous flow of income. I could set up a “buy-one-give-one” model and for every hearing aid I sold, I’d give one to someone in need. Yes, the profit margin would be slimmer than a typical for-profit business but this sustainable business model would mean I would continually be able to help more hearing impaired children.

Think about the organizations that feed hungry children in underdeveloped countries. If we set up a charity bringing formula to babies in a developing country and then for whatever reason we could no longer deliver, those babies would starve. They would have come to depend on our help and the mother’s breast milk would have dried up so they could no longer nurse their babies. But if we set up a business teaching those same women a craft that they could wholesale to us and we could turn around and re-sell, they would have a livelihood that provides the resources to continually feed their children without our help.

Is there an injustice or lack that pulls at your heartstrings? You can set up a charity and find volunteers to help but if you run short of people willing to give their time or resources, you can no longer do your good work. Or,  you can set up a business that addresses that problem AND makes a profit so that you can sustain the level of aid and thus help more people.
If you need help figuring out how to develop a business that can bring you income and solve a social problem, click HERE to learn about my “idea generator” fall special package of three consultations. We will examine who you want to help and how you can set up a business that both makes a living and a difference.

Join a tribe, create your sewing circle, make a living and a difference

Last week, I put out a call for people who love to sew but hate to market. I was thrilled at the overwhelming response from readers and astonished at what some had to say. Many of the emails I received were from people looking for a “work-from-home JOB”.  Why would  someone who for a long time went by the name “self-employment muse.” want to “hire” you?

If you’ve been following me for awhile, you know that my mission is to help people create meaningful self employment, that I once had a payroll of over one hundred. While I loved knowing that my business was enabling people to earn a living, it broke my heart when the business could no longer support that many employees. I am committed to empowering people to be responsible for their own livelihood and not be at the mercy of a boss.

It’s my conviction that the creation of small businesses will be the cure for a sick economy; that the only real security is self employment. When I put out that call last week for people who love to sew but hate to market, it was in response to all of you who say you are looking for a way to make a living doing what you love. You love to create but not sell. I LOVE marketing, letting people know about cool products, especially handmade items.  So, what I’m looking for are people who want to be self employed, want to have their own business and be their boss. I don’t sew but I have a product that I know will sell if you, the crafters, supply it.  It’s my goal to create a tribe of entrepreneurs who love what they do and have control of their own time, income and environment.

If it’s a job you’re looking for, I’m not your gal.  But, if you’re seeking inspiration and guidance to be your own boss, to join a tribe of inspired entrepreneurs, let’s talk. You have the equipment since you already sew. You can do all the sewing yourself or create your own community, your sewing circle. And we’ll all be making a difference, making income doing what we love. That’s what inspired livelihood is all about.

He Eats, Sleeps, Writes in Italy-Makes a Living and Improves Lives

Can you imagine making a great living sampling home made pasta, tiramisu and gelato, schmoozing with the proprietors and then snuggling up in a cozy bed and breakfast overlooking Lake Como?  And knowing you’re improving lives of thousands?

My friend  Barbara Winter brought this little video to my attention.  Rick Steves talks about his joy at having found his own right livelihood.
http://tinyurl.com/yga7tzq

Note that he says he enjoys visiting these people who have found their niche.

While he isn’t directly solving world hunger or righting an injustice, consider the ways his business is improving lives.  He’s not only making a living doing what he loves but making a difference in the lives of thousands of entrepreneurs by recommending their establishments. He’s also enriching the lives of all his readers and viewers who might never experience foreign cultures if he didn’t show them how they can do it in style on a budget.

Your own business may not change the world tomorrow but how can you improve the lives of a group of people by sharing what you know and love?

If you know you want to find more meaning in your livelihood doing what you love and making a difference in a few lives, your community or the world, March is the time to step up and get started.

Are you having trouble figuring out how doing what you love can improve lives and earn the income you need?

In honor of what my friend Alice Barry ( “Entertaining the Idea”) calls the Month of More Meaning, I’ve bundled my “Idea Generating”sessions and you can now sign up for a package of 3 Private One-to-One Phone Sessions with me for $270. My single session rate is $185 an hour but because NOW is the TIME to TAKE ACTION, I’m opening up a limited number of session hours to a select few who are ready to MARCH.

This month only, until the slots fill, you can purchase a
3 Session Package for $270 ( less than half the usual hourly rate.)

Find out More about these Idea Generator Sessions

STOP beating yourself up for not accomplishing what you planned to earlier this year. Forget those New Years resolutions. January and February are hibernation months in nature for a reason. But, March is time to SPRING into action!

Are making a living and making a difference separate parts of your life?

The old idea of philanthropy as writing a check or volunteering after you’ve made your fortune in a high level job is  20th Century thinking.  A trend we’re seeing at universities worldwide is to prepare graduates to build a business that makes money and embraces social change. A business degree is definitely not necessary to start a business, but it’s worth noting that major business schools are turning out a new breed of MBAs who want to make a buck while also making the world a better place. The old MBA model turned out graduates with the goal of landing a solid corporate job. If a student’s goal was to make a difference, they’d go into social work or the non-profit sector.   In a recent article in the Independent, a UK publication,  Pamela Hartigan, director of the Skoll Centre for Social Entrepreneurship was quoted as saying that “rather than separating where they (new MBAs) make their money from where they do good, they are convinced that it is possible to live comfortably and dedicate their careers to pursuits that are fundamentally innovative, philosophically positive and morally compelling.”

Are you ready to join the ranks of 21st Century Entrepreneurs who are creating businesses that improve the lives of individuals, families, communities and countries by using their passions and creativity to solve local and global problems and create social change?  If you’re ready to learn how you can create a profitable business that means something more, I’d like to invite you to join Barbara Winter, best selling author of “Making a Living without a Job” , Idea Artisan, Alice Barry of “Entertaining the Idea”and me, Terri Belford, self-employment muse for a life and

career changing event.

Entrepreneurs as Change Agents-Can you Make a Living and a Difference?

When friends and family ask me what I do, my description often includes the term “social entrepreneurs”. Typically, I see puzzled look and I explain that I help inspired entrepreneurs to make a difference in the world. This is frequently followed by, “you mean you work with non-profits?”. 

While some social entrepreneurs do run non-profit or not-for-profit organizations, and draw a nice salary as director, many social entrepreneurs are in private enterprise.  The terms “social entrepreneur” and “for profit” are not in conflict.  There’s a common misconception that making a difference means living on peanuts. That’s absolutely false.

Social entrepreneurs can make a substantial living, however their mission is to for “more than profit.”  Unlike “cause marketing” which is attracting customers by promoting the fact that a percentage of profit goes to a particular cause, social entrepreneurs are moved by a specific social problem and use entrepreneurial principles to aid in social change.  As opposed to a business deciding to donate to a cause, the cause is the impetus for the business.

According to an article in Business Week last fall, there are now 30,000 known social entrepreneurs producing $40 billion in revenue. The same article reported that President Obama  suggested starting a new government agency to help socially conscious startups gain more access to venture capital. 

Although we’d all love to make changes on a global scale, social entrepreneurs can make a positive impact by using their business acumen to facilitate change in their own community. 

Daily, I hear from entrepreneurs or aspiring entrepreneurs who’s priority is making a difference.  Coaches, counselors and other re-careering professionals report that the most common criteria  their clients express for an ideal livelihood is that it must have meaning. A traditional career counselor hears this and steers the client to social work or other helping professions.  The idea of entrepreneurship isn’t part of a career counselor’s toolbox. 

Do you have a strong pull to make a difference in your community or the world but no idea where to begin to build a business around it? Or are you already an entrepreneur looking for greater meaning in your business and your life but can’t figure out how to have both? Either way , you’ll not want to miss the summer “Inspired Livelihood Tele-Summit” where you’ll learn from entrepreneurs who are making a living, doing what they love and making a difference.

My Ideal Client is a Social Entrepreneur

While discussing my ideas about a new series of “Inspired Livelihood” Workshops that I am planning, Alice Barry asked me who I see as the ideal seminar attendee. This question got me thinking about my ideal client, who I’ve always described as an aspiring entrepreneur who knows her purpose but needs guidance in turning her passions into a profitable business aligned with her values. But there’s more. 

I realized that my closest friends and ideal clients share a common mission. They don’t just want to start a business and make a living. They know they are here to make a difference in one life, one community or the world. They are called to be an agent of change and they are ready to start NOW. 

“Be the change you wish to see in the world.” Ghandi

How do you Fuel your Passion and Serve the World?

People often associate Stephen Covey with organization and efficiency and while these are absolutely factors in ‘the Habits”, the line below from The 8th Habit spoke to me as someone who is a true true Social Entrepreneur. “When you engage in work that taps your talent and fuels your passion – that rises out of a great need in the world that you feel drawn by conscience to meet – therein lies your voice, your calling, your soul’s code.“  Many of us grew up with such a sense of responsibility that we forgot that serving, unless it is also fueling a passion, can be a disservice to ourselves and those we serve.  If your heart is not in your work,  the recipients of your labor feel it. But, all of us have at least one calling and when we are truly engaged in doing that “thing” and while  we may not realize the impact it has on others,  NOT doing it is with holding a gift from others. 

Over the next couple of months, we will be introducing you to Social Entrepreneurs who are not only doing work that feeds their soul but making a living while making a difference in their communities and in the world. 

Make a Difference

Make a Difference