Hey Founder, Have You Baked Impact into Your Business?

Photo by Ian Schneider on Unsplash

Dear Founder,

As you embark on your purpose-driven entrepreneurial journey, remember to integrate impact into the very core of your company. Today, companies with a clear, visible purpose are not only appealing to consumers but also attract investors. While you may excel in the practical aspects of founding a business, it's equally vital to champion your purpose. 

There's no limit to the causes you can embrace, from food insecurity to environmental challenges. Make it an integral part of your business ethos right from the start. For instance, at Goodles, influencers known as 'do-gooders' were enlisted to assess new nutritious mac and cheese products before the company's launch. This team, familiar with the natural products industry, played a crucial role in product evaluation. Similarly, numerous companies successfully align their products with their underlying purpose, evident in every piece of packaging and on every web page.

You, as a founder, hold the potential to uplift the communities you serve. Vital Farms, for example, sources its chickens from local farmers, fostering a mutually beneficial relationship. Blue Evolution partners with local, family-owned farms in Alaska, providing sustainable income to struggling communities in coastal fishing villages.

However, even passionate founders may face challenges aligning with investors. When choosing funding sources, be prudent. Present Key Performance Indicators (KPIs) that resonate with potential investors and remain flexible on margins. Showing a viable route to profitability holds significant weight for purpose-driven investors.

Finding investors who share your vision can be transformative. While current economic conditions may cause some investors to focus more on financial stability, there are still many who appreciate the power of purposeful business. If you encounter an investor who questions your dedication to a particular cause, remember, it's essential to choose partners who align with your values.

Remember, founders and funders are partners on a shared journey. Respect those who support your vision and ensure their commitment is wholehearted. Choose partners who motivate, not hinder, who uplift, not slow down. And don't overlook the potential of strategic partnerships, as seen in Annie's/www.annies.com/ collaboration with General Mills.

One of the most powerful ways founders can make an impact is lifting up the communities in which they work or which form part of their supply chain. The Harvard professor Michael Porter wrote a brilliant article on this kind of impact, which he called shared value. Vital Farms sources its chickens from local farmers.

Blue Evolution is a California-based business that sources seaweed for its line of ocean plant-based ingredients from local, family-owned farms in Alaska, providing a sustainable income for those struggling to make a living in Alaska’s coastal fishing villages. Their Alaska operations are heading toward carbon-negative, having developed a processing line with the Su’naq tribe’s seafood plant Wildsource, a system which only uses Kodiak’s pure wind and hydro energy.

The company is extending their social and indigenous impacts well beyond Alaska to Mexico, New Zealand, where they are working with the Maori, Iceland and several other geographies.

Good Pharma is a husband-and-wife team who produce functional coffees and teas. They source all of their teas from small farms in Central and South America that normally get little support. So the company not only gets amazing quality because they use ingredients you can’t find anywhere else, they also are helping farmers and even whole communities by lifting the farmers.

Consider getting involved with communities like B Corp, a platform where you can connect with brands that share your passions. Additionally, explore platforms like CircleUp, which not only offers research tools but also facilitates connections between investors and purpose-driven brands.

We're eager to hear about the hurdles you face in growing your purpose-driven business. Your insights and experiences are invaluable to us.

Sincerely,

Rob Craven & Deborah Luster

About Rob Craven: Robert is the founder of ScalePassion and the Managing Partner of Findaway Adventures. He has served as CEO of MegaFood, NewOrganics and Garden of Life.

About Deborah Luster: Deborah is a serial entrepreneur in CPG, packaging and publishing. The first President and founding team of Annie’s and Chief Impact Officer and Founder now at Goodles, Deborah actively works with founders and companies internationally aligning proposition and purpose.