Insights Wanted: What's the best way to ensure that your company creates a positive impact?
Oliver Dauert
Biodiversity Builder | I empower you to build a wilder world | Founder of Wildya & Wild Business Mates | Linkedin Top Green Voice
I strongly believe that in order to deliver real impact we need to change our business models.
Greed has to be replaced by impact.
I am building Wildya in public and currently I am at the crossroads to decide which impact model I want to start with, so I thought I ask you about your thoughts.
To start with a definition, so far I understand impact as:
Impact = Positive Actions + Scale
In order to scale any business or NGO it needs to be financially stable with a solid business model.
With my, for impact business, I have the bold ambition to contribute 1% to the 30x30 goal.
So scaling is of massive importance.
Here the 2 ways I can go, which I would love your thoughts on!
1. 15%-30% of the revenue
Basic idea: similar to any other costs (distribution, HR, marketing etc.) we compensate nature for their services and take it right from the top line
Pros:
Cons:
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Examples: Couldn't find one, but something going slightly in the same direction is 1% for the Planet
Why 15%-30%? 苹果 takes 15%-30% of your revenue when you sell something on the app store. Right from the top line. No questions asked. I thought it would be great to do the same with nature.
FYI different products have different margins. Apps are very cost-heavy, whereas other future products might present better margins. Which is why I wanted to test it with 15%-30% first.
2. All profits
Basic Idea: Donate 100% of the profits towards to pay nature for their services
Pros:
Cons:
How do you think I can create the biggest possible impact?
Thoughts, experiences, and challenges are all welcome from you!
I tag a few of those people that inspired this thought process, maybe one of you has a perspective on it. Gilles Toussaint , Stan Reimgen , Lubomila Jordanova , Jack Lewars ?? , Alessandro Mazzi , Carlos Terol , Christian Kroll
P.S. If you are having similar thoughts I can highly recommend Purpose Economy . Great resource for this topic. Links below.
Chief EVRgreen Studio ?? Play for a green future ??
1 年I think it's great you're taking us along your journey. I haven't found the answer myself, so I am trying things out, as you said you will probably do ?? For me it's manifesting in that the actual products and projects having a positive impact on nature. With that, I'm working towards a financially stable and healthy company and when there is space, we can see if a profit donation model is possible. I'm sure you'll find your path soon with your great energy!
??Join a community of changemakers and boost your impact ?? | Founder @ Good Ripple | Making sustainability & social impact accessible to everyone | Climate Fresk Facilitator | Speaker
1 年Great question Oliver. It's definitely a tricky one. I think the profit model is less appealing to me, mostly because of what you said - profits can be manipulated. Also, some businesses take 5-10 years to become profitable, which means you wouldn't be giving back anything during those years. And even after that, if one year you make a big investment, therefore reducing your profits, again you kill your contribution. Making it as a % of revenue seems more solid and consistent, giving back from year 1. I'm a big fan of progressive taxation, and I think a similar model could work well for businesses. With one of my startups, we've been members of 1% for the planet from the very beginning (2 years ago). I think this is a great start for companies that are just starting. You could then have a progressive donation model. For example, until you hit 100K ARR, you give 1%, then for every 100K extra in ARR, you increase the donation by 1%, and maybe cap it at 3 million ARR, which would be 30% of revenue. Making it a % of revenue also makes it more tangible to users and clients, like you can say, for each 100 you pay us, we give back X to nature. You can't make it that concrete and specific with a profit model.
Co-Managing & Marketing Director of The Design Gallery - Green Britain TV Communications Consultant - Changemaker? Media Editor - Communications Agency Co-Founder - Health & Beauty Editor
1 年Important questions, thank you Oliver - I'd love to interview you for our new website supporting ecopreneurs and writers & photographers who care about the environment https://changemaker.media E: [email protected]
Fractional VP of Growth at Planet Wild - ?? Freelance C-level helping seed & series A greentech & nature-tech startups hit their revenue targets - PhD in Chemistry ??
1 年It is inspiring to see you are so committed to having such an impact ?? ?? I think option 2 has the biggest impact on the short term, but it is more difficult to scale a non-profit company, so you might want to refer to some of my podcast insights: - Robert Schrimpff (episode 9) who explained to me why he went for a for-profit, even though he has a massive positive impact on climate and children education (episode 13), - check alternative models like Wietse Van Der Werf (episode 21) who setup his company as a Social Entreprise mixing several organizations between which the money flows, the ultimate goal being impact, but it has pros from both non-profit and for-profit. - similar mixed companies for-profit and non-profit from the serial social entrepreneur Torsten Schreiber (episode 33) You can listen to the episodes here https://missionfirst.earth/
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1 年Thanks for this Oliver. I think instinctively that 100% of profits is more workable. It means that your incentives are aligned with the impact - you want a profitable business; and a profitable business helps the world. You can always a small ongoing contribution while you scale the business, e.g. 1% through One for the World