A Social Entrepreneur's Guide: Start Making the Mistakes That You Will Never Regret
I liken being a social entrepreneur to being a New York City resident; you don’t really feel like you belong until you can show others around. After celebrating two years of being a social entrepreneur, I've turned mistakes into a meaningful enterprise.
It began at the supermarket. My then three-year-old son and I were heading down that slippery slope aka the cereal aisle. It hit me that every product that was at eye level for him contained more sugar than nutrition. I searched for better alternatives and picked up a box of Paul Newman’s Own brand cereal. What caught my eye was not only that it was made of four all-natural ingredients, but that the phrase, “All profits go to charity.” This began my journey to discover more products and companies that made the same pledge, and to then set up a marketplace for them.
There were some immediate challenges, such as educating consumers about the need for a marketplace for social goods. We also knew our success would depend on bringing in as many partners as possible. But there were lots of bumps along the way.
95 percent of business is done exactly the same way
We believe that because our mindset is so unique and our businesses so forward thinking, that execution must be as well. But all enterprises, social or not, need good accounting procedures, a steady customer base, solid organization and proven business practices.
For us, the most challenging part was keeping track of our finances. When at a crossroads, look to your network. We were able to tap friends (after tax season) who helped us manage our books for low or no cost.
Entrepreneurship starts when everyone else would have quit
It's near impossible to keep up with the Joneses when you don't have their deep pockets. But necessity is the mother of invention. Reaching the brink, running out of capital, losing sales and other setbacks will force you to explore options for survival that would otherwise not be on your radar.
Contest after contest, incubator after incubator, no matter what the business competition was, we finished just outside the running. Finalists for TechStars (2x), finalists for Civic Incubator (2x), runner-up at three investor conferences. With our backs against the wall, we improved on the model after falling short in several areas.
Our new model has proven to be more effective and by following the course we had originally set out, we couldn’t have grown. We had to be open to options, but we also had to be at the brink of disaster in order to find the right path. When nothing is going right, go left.
Get consumers involved in the story of impact
A social entrepreneur’s greatest tool is story-selling. The idea that because of you, something good has happened. TOMS shoes uses it... Because of you, a child in need received a pair of shoes. FEED: Projects uses it: Because of you, 35 people will eat tonight. This is our tool and we need to own it.
With our launching of Crowd Commerce, we harnessed this by bringing amazing projects to life through great products. As an example, in October we launched a campaign to build water wells through water bottles. For every 300 we sold, a water well was built in Nepal providing clean water to 10,000 people.
By month’s end, more than 600 had been sold. Because of you and your purchase, the world will be a better place. How many other companies offer an opportunity like that?
There is no such thing as a bad conversation
Far too often I hear stories from other entrepreneurs about the deals they missed out on because, of the networks they couldn’t tap into. Don’t get me wrong. There are 100 reasons you can lose a deal. But consider this, if you talked to everyone you ever met for 5 minutes about what you were working on, do you think a few of them might be able to make some great introductions? The answer is, YES.
Patience is key
Patience. Set expectations for your first year and cut them in half. Don’t overreact when everyone doesn’t jump on the bandwagon right away. Don’t twist and turn to the every whim of your first couple of clients and most importantly, stay true to your mission.
I had an uncle suggest that I quit because the world wasn’t ready for this type of business, friends who told me to give up my hobby and think about my family, and partners who didn’t totally understand our mission and ended up making things more difficult. Despite all that, our team never quit.
Your idea is good and if it keeps you up at night, it’s even better. Get out there and do it. The tides are turning around the world making this the ideal time to start a social venture. More than 56 percent of consumers according to eMarketer are seeking companies that give back. According to a study of Stanford undergrads, more than 90 percent said they would take a lower salary to work for a company that shared their values.
Looking back, I can say that entrepreneurship makes every day of your life the best and the worst. Of course if it was an easy route, everyone would take it. But if you have the ideas and determination, it’s time to start making the mistakes you will never regret.
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