If you have a startup that aims to solve a social or environmental problem, you might wonder how to communicate your impact to potential investors, customers, and partners. In this article, we will share some tips on how to showcase your startup's potential for social good and why it matters for your success.
The first step to showcase your startup's potential for social good is to clearly define the problem you are addressing and the solution you are offering. What is the root cause of the issue? How does it affect people, communities, or the planet? How does your product or service address the problem in a unique, effective, or scalable way? By answering these questions, you can demonstrate your understanding of the market, the customer needs, and the value proposition of your startup.
There's one way you can show your startup's potential for social good. And it's by clearly defining the problem you're addressing and articulating the innovative solution your startup offers. Your narrative should resonate with the audience, highlighting the urgency and significance of the problem at hand. And also ensure your solution is portrayed as not just effective but transformative, demonstrating a profound impact on the social or environmental landscape.
In my work with social impact startups and projects I do recommend formula offered by Founders Institute: 1. State the Impact Problem and Aligned SDG: "I believe that [specific impact problem exists], which is aligned with [UN SDG sub-goal]." 2. Propose Your Impact Solution and Measurable Metric(s): "My company can help [how you create impact], tracked by [your iKPI metric]." 3. Putting Together Your Impact Thesis: "Integrate parts 1 and 2, combining your UN SDG-aligned Problem statement with your proposed Solution framework and iKPI metric to measure your progress."
The next step to showcase your startup's potential for social good is to measure your impact. How do you track and evaluate the outcomes and benefits of your solution? What indicators or metrics do you use to quantify your social or environmental impact? How do you collect and analyze data to validate your assumptions and improve your performance? By measuring your impact, you can show your progress, achievements, and challenges, as well as your commitment to transparency and accountability.
I recommend to use impact measurement frameworks for startups: 1) B Impact Assessment (BIA): Developed by B Lab, BIA assesses impact on workers, community, environment, and customers. 2) Global Impact Investing Rating System (GIIRS): GIIRS evaluates social and environmental performance, providing a standardized framework. 3) Social Return on Investment (SROI): SROI helps quantify social value creation, aligning with ESG principles and SDGs. 4) Sustainable Accounting Standards Board (SASB): SASB offers industry-specific standards for sustainability reporting. 5) The Global Reporting Initiative (GRI): GRI is a recognized framework for sustainability reporting, addressing economic, environmental, and social issues.
Have you ever planted some seeds in a garden? Over time, you see the plants grow big and strong. Similarly, measuring your impact is like watching your efforts grow and make a positive difference in the world.
The third step to showcase your startup's potential for social good is to tell your story. How do you communicate your mission, vision, and values to your audience? How do you convey your passion, purpose, and personality to your stakeholders? How do you use storytelling techniques such as narratives, anecdotes, or testimonials to illustrate your impact? By telling your story, you can connect emotionally, inspire action, and build trust and loyalty with your investors, customers, and partners.
One thing I've found to be extremely effective time and time again is to empower your users/customers/beneficiaries to tell the story on your behalf - whether that's with social media, user-generated content or any other method. Sugru had a great example of a user-submitted story where a customer used their product to fix her pet chicken's leg - a compelling story that gets spread fairly often, despite being just a moldable glue!
Imagine you have a favorite bedtime story. It has a beginning, middle, and end. Your startup's story is kind of like that. Sharing how you started, what you're doing, and the value you're bringing to the world.
The fourth step to showcase your startup's potential for social good is to align with the Sustainable Development Goals (SDGs). The SDGs are a set of 17 global goals that aim to end poverty, protect the planet, and ensure peace and prosperity for all by 2030. They provide a common framework and language to describe and evaluate the social and environmental impact of businesses and organizations. By aligning with the SDGs, you can show how your startup contributes to the global agenda, aligns with the values and expectations of your stakeholders, and differentiates from your competitors.
In my experience startups benefits from a commitment to SDGs in 3 key areas: 1) Access to Funding: Attracts impact investors, expanding funding opportunities. 2) Talent Attraction: Draws purpose-driven talent, boosting employee satisfaction. 3) Reputation and Brand Image: Enhances reputation and brand image, fostering customer loyalty.
The fifth step to showcase your startup's potential for social good is to join a network or platform that supports and promotes social entrepreneurship. There are many networks and platforms that offer resources, opportunities, and recognition for startups that create positive change in the world. For example, you can apply for awards, competitions, or accelerators that focus on social impact. You can also join communities, directories, or marketplaces that connect you with other social entrepreneurs, investors, customers, or partners. By joining a network or platform, you can increase your visibility, credibility, and network in the social impact space.
The sixth and final step to showcase your startup's potential for social good is to learn from others. There are many examples of successful startups that have created social good and achieved financial sustainability. You can learn from their best practices, strategies, and lessons learned, as well as their challenges, failures, and pivots. You can also seek feedback, advice, or mentorship from other social entrepreneurs, experts, or influencers in your field. By learning from others, you can improve your skills, knowledge, and mindset, as well as avoid common mistakes and pitfalls.