What you keep when becoming an impact entrepreneur

impact entrepreneur

You already know that when you become an impact entrepreneur, many things change in your business and also in your life.

The impact entrepreneur is focused on positively affecting the lives of people, their community, and ultimately the environment. 

This is why they differ from an ordinary entrepreneur, who tends to focus only on profits and economic results.

Even with this difference, some things are common to all entrepreneurs, whether they are impactful or not. And knowing what these things are is an initial step for anyone starting a business.

Operations

The operations of a business are like the gears that keep everything running smoothly and synchronously. They allow things to run easily, be predictable and manageable. This makes understanding operations indispensable, no matter what kind of business you have. 

In fact, impact businesses need to have even more organized operations, with a focus on efficiency, so they can scale their impact. 

So, be aware that even if you become an impact entrepreneur, you will still need to deal with operational demands within the company. Knowing this in advance will make your whole process easier.

Financial planning

You already know that a social business goes far beyond profit: it focuses on its impact. Therefore, it has products and services that necessarily have a positive impact on the world.

But this does not mean that profit is not necessary and important. To continue generating impact and survive in the long run, a business needs to have a way to sustain itself. This means that it must be financially responsible and pragmatic.

At this point, you may be thinking “I just need to make more money and spend less”. Although this may seem simple, taking care of a business’s finances is an important task.

So take into consideration:

– Tax rates;

– How much the business needs to make in the month to maintain positive cash flow;

– What are realistic performance expectations with the available resources;

– Who will be responsible for the finances;

These are just some of the things to consider at this point, but it is a good start. So understand once and for all: impact entrepreneurship goes beyond profit, but not without it.

Technical needs

Streamlining operations usually brings about technical needs that arise as a result. It is essential to have the tools, trained people, and an organizational models to make it all work.

At this stage, it is important to remember that businesses mature over time. Having a social business is a big challenge, and it may take you longer to get organized.

But always keep in mind what the goal of your impact entrepreneurship is, and what needs to be done to get there. With that, technical organization will be easier.

Management

Finally, all these factors need to be organized through good management. Management, in the beginning, can be done by the leader – regardless of which leadership style you have.

Just like the other factors, this is one that evolves with time. It is important to monitor the business and determine what changes need to take place as it matures and evolves. 

If management is not your cup of tea, then hiring the right resources will become very important.

Conclusion

Both mainstream and impact entrepreneurship have their own challenges and opportunities. So remember to always detail your business’ strengths and weaknesses well – this will also be essential to thrive.

A good tip is to use SWOT analysis as a management tool. This way you will have a broader view of your business and will be able to act more effectively.

Want to learn more? Read more articles from our blog!

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