Evan Carmichael argues that profit depends on solving customer problems, so every business has a social purpose built in. Beyond that, entrepreneurs should give back through time and money driven by genuine passion, not marketing. He mentors with Junior Achievement and supports Kiva micro-loans, saying this work prevents burnout and makes better business.
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Does a business need to have social aims? That's a question that came in from a Twitter reader, Emma. Great question, and to answer that, if we step back, if we look at a bigger picture, if we look at your business from a 50,000-foot level, if we get into the philosophy of entrepreneurship, then every business has a social aim. Because if you're not helping people with your company, then you're not going to make money. Money comes from helping people. You help somebody solve a problem, you're going to have success in your company. So every business needs to have that kind of social aim. If you're in it just to make money, it's never going to happen for you. Now, diving deep back into the question, I believe that every entrepreneur has an obligation, a duty, the, the right to go out and contribute to their community beyond what they're doing with their business. Find something that will help nourish your soul as an entrepreneur and do it as soon as you can. You don't have to go and invest a lot of money. When you're first starting out, you don't have a lot of money, so you don't have to put it all into some charity that you believe in. You have a duty to grow your business because the more your business grows, the more of an impact you can have in your community. But give your time, especially at the beginning. Do something that makes you feel good. Do something that gives back to your community. Forget about the business side of it. It can be great marketing that people know that you're part of something, that you're helping your community out. They'll want to go with you. But forget about that. Do it because it's the right thing to do. Do it because it makes you feel good. Do it because it gives you more energy to go to your work the next day and know that you're not only helping your customers, but you're helping all these other people attached to it as well. Find a cause that you believe in, that's tied to your core. I believe in entrepreneurs, so I've helped out organizations like Junior Achievement, where they teach young entrepreneurs, high school students, how to become business owners, and I was a mentor for a number of years. And now the main cause I'm involved with, with Kiva, is a microloan system where we've helped support thousands of businesses get started mostly in Africa, to help these businesses get off the ground, help people get out of poverty through entrepreneurship, help them support their family, bring on a workforce, and enrich their communities. That's something that I feel good about. And if that helps my business, so be it. But I do it because it's the right thing to do. So I believe that every business should also have something where you're contributing back to your community around a cause that you believe in. Again, don't do it because you think it's the right thing to do. Don't be strategic in the cause you're helping out. It's got to come from the heart. It's got to be something that you're passionate about. You love this charity. You love what they stand for. And that passion and energy will flow back into your business and make you a better entrepreneur and help you build a better company. I know at the start it's really hard. You know, entrepreneurs, we're working 80 hours a week, 100 hours a week, whatever it is. It's crazy. It's crazy hard. If you do just do that, you're going to burn out. If you don't have anything that contributes to nourishing your soul and making you better and, and helping you see the impact that you are able to have, then you're going to burn out with your business. You're not going to make it. By dedicating a little bit of time, just a little bit of time, I'm not saying spend 10 hours a week at a charity, dedicate a little bit of time. To your favorite charity, to something that means something to you, something that gets you excited, something where you can see the direct impact of your time and effort. Do that. Allow your team to do that, and you'll build a better company, have more impact, have more money, and you'll be more excited about what you're doing every day. Believe. Thanks for the great, great question. For those of you watching, you like the video, please give it that thumbs up below. It makes me want to do more videos for you. And if you have a comment about this video or a question for your business, let me know in the comments below and I'll make a video reply for you. Thanks guys, I'll see you soon.
