Innovate for People, Not Just Profits

If my life was perfect, I'd nearly always be starting or building a company that took a few years to bring on about 100 employees... then I'd start another one, and let the first continue under other leadership.

The energy and joy in such firms makes it a joy to go to work.

During those essential early days, we'd be obsessed with one thing: helping other people.

In fact, this is the quest of most startups, to help other people. When startups pivot, they are basically saying, "We thought people would find our original idea helpful but they didn't, so we are trying another."

Companies that grow rapidly from zero to 100 employees seldom think about profits. Let's be clear: I don't mean they are unprofitable, although in many cases this is true. I mean they are not motivated by profits; they are motivated by helping other people.

The best innovators and entrepreneurs are in love with the utility and impact of what they have created. They want to solve a problem or grasp an opportunity.

Ah, but after you pass 100 employees - at least from my biased perspective - something shifts. Management becomes more professional and less passionate. It becomes more about the money, perhaps because you now have a two, three, or four-year track record. "Last year we did $7.5 million, so this year we need to top $9 million."

The thrill of innovation gets replaced by the grind of competing against yourself. If you're on the Sales end of your firm, no matter how much you sell, it's never good enough. You need to sell more next year, or else.

There are exceptions. Some companies remain obsessed with people and passion long after they pass 100 employees. One way this happens is when a team within a larger business somehow retains its humanity even as the larger corporation revolves around numbers.

Here's the thing: this isn't about altruism. For most of us, purpose is a much better motivator than money... and besides, when you focus on helping rather than selling, you often end up generating more profits!

Isn't that ironic? The less you focus on profits, the more profits you make.

Let's think about this in very personal terms. Imagine that you shop in a small but very nice clothing store in which the owner personally waits on you. If he is only kind and courteous when you buy something, you are unlikely to keep shopping there. But if he is always professional, helpful, and genuinely glad to see you, then you will probably become a loyal customer.

Three words: help other people.

Bruce Kasanoff helps a wide range of entrepreneurs and executives shape their best ideas for social media.