{"id":1069,"date":"2025-01-28T15:28:06","date_gmt":"2025-01-28T20:28:06","guid":{"rendered":"https:\/\/josh.ev9.org\/weblog\/?p=1069"},"modified":"2025-02-03T13:02:41","modified_gmt":"2025-02-03T18:02:41","slug":"is-running-an-impact-business-right-for-you","status":"publish","type":"post","link":"https:\/\/josh.ev9.org\/weblog\/archives\/1069","title":{"rendered":"Is Running an Impact Business Right for You?"},"content":{"rendered":"\n

There are so many reasons to start an impact business. First of all, it should be said that getting into business is, in and of itself, a way to impact the community and world around you. Providing services that benefit people is impactful\u2014full stop.<\/p>\n\n\n\n

These days, though, you can take many steps beyond simply starting a business and setting your values<\/a> in a way that encourages positive impact. You can intentionally build your business as an impact-first organization, with the mission intrinsically bound to the corporate mission of generating returns to shareholders. Whether you\u2019re considering pursuing certifications like B-Corp status<\/a> or structuring your company as a Public Benefit Corporation (PBC), these choices come with clear benefits\u2014and some challenges.<\/p>\n\n\n\n

B-Corp Certification<\/h2>\n\n\n\n

B-Corp Certification is a designation awarded by B Lab<\/a> to companies that meet high standards of social and\/or environmental performance, accountability, and transparency. It\u2019s like earning a gold star for your commitment to doing business the right way, balancing profit with purpose.<\/p>\n\n\n\n

To earn this certification, companies complete a rigorous assessment process covering governance, workers, community, the environment, and customers. Scores are made public, ensuring accountability. While the certification process is demanding (it requires documentation, changes to corporate bylaws, and regular recertification), the payoff can be substantial: increased credibility with customers, enhanced employee engagement, and alignment with like-minded investors.<\/p>\n\n\n\n

In my experience, initially earning B-Corp certification takes a few months, and is not as easy as simply filling out a form. The best way to approach to the application process is to adopt new ways of working within your company as you go. The process is helpful, and you are probably not meeting the criteria on day one.<\/p>\n\n\n\n

When Fixer earned its B-Corp Certification, it wasn\u2019t just a badge of honor. It became a powerful guide for how we made decisions, hired talent, and partnered with others. But it didn\u2019t come without effort.<\/p>\n\n\n\n

PBC Charter<\/h2>\n\n\n\n

Incorporating your company as a Public Benefit Corporation (PBC) is another way to bake impact into your business\u2019s DNA. Unlike traditional corporations, which prioritize shareholder returns above all else, PBCs are legally obligated to balance profit with purpose. This structure allows you to formally commit to benefiting the public and gives you the legal flexibility to consider other stakeholders\u2014not just shareholders\u2014in your decision-making.<\/p>\n\n\n\n

The process to incorporate as a PBC varies by state, but it typically involves adding language to your corporate charter that defines your public benefit purpose. For Fixer, that purpose was providing an entry place for people looking to start and expand careers in the trades\u2014an arena often plagued by instability and low pay.<\/p>\n\n\n\n

The beauty of a PBC charter is that it creates accountability, both internally and externally. It also signals to employees, partners, and customers that you\u2019re serious about making a difference.<\/p>\n\n\n\n

The Benefits<\/h2>\n\n\n\n

Running an impact business comes with some pretty positive upsides:<\/p>\n\n\n\n

    \n
  • Attracting Like-Minded Talent: People increasingly want to work for companies that align with their values. An impact-driven mission can help you stand out in the talent market.<\/li>\n\n\n\n
  • Customer Loyalty: Consumers are more loyal to brands they perceive as doing good. A clear commitment to impact can make your business more appealing to socially conscious customers. (Though, I have to admit, customers cared less about this approach than we expected.)<\/li>\n\n\n\n
  • Differentiation in the Market: B-Corp Certification or PBC status can set you apart in crowded industries, building trust and goodwill with customers and investors.<\/li>\n<\/ul>\n\n\n\n

    The Drawbacks<\/h2>\n\n\n\n

    Of course, it\u2019s not all roses and sunshine. There are real challenges to running an impact business:<\/p>\n\n\n\n

      \n
    • Higher Costs: Certifications, compliance, and commitments to paying fair wages or sourcing sustainably can increase your costs.<\/li>\n\n\n\n
    • Accountability Pressure: Being an impact business means constant scrutiny, both internally and externally. The standards you set for yourself are high, and staying true to them requires ongoing effort. Sometimes it feels like, despite your best effort, you aren’t making anyone happy.<\/li>\n\n\n\n
    • Investor Reluctance: Most traditional investors shy away from impact businesses, fearing that prioritizing social or environmental goals will cut into profits. Some investors are direct about this, others aren’t.<\/li>\n<\/ul>\n\n\n\n

      In Summary<\/h2>\n\n\n\n

      Starting and running an impact business is not for the faint of heart. It requires dedication, transparency, and a willingness to balance financial and societal goals. But the rewards\u2014building something that not only grows but genuinely makes the world a better place\u2014can be worth it.<\/p>\n\n\n\n

      If you\u2019re considering starting an impact business, think carefully about why you\u2019re doing it, what you hope to achieve, and whether you\u2019re ready for the challenges ahead. Whether you choose to pursue B-Corp Certification, incorporate as a PBC, or simply operate with clear values, remember this: business itself is a tool for impact. The question is, how will you use it?<\/p>\n","protected":false},"excerpt":{"rendered":"

      Starting and running an impact business is not for the faint of heart. Let’s talk about whether it’s right for you.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-1069","post","type-post","status-publish","format-standard","hentry","category-professional"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/josh.ev9.org\/weblog\/wp-json\/wp\/v2\/posts\/1069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/josh.ev9.org\/weblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/josh.ev9.org\/weblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/josh.ev9.org\/weblog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/josh.ev9.org\/weblog\/wp-json\/wp\/v2\/comments?post=1069"}],"version-history":[{"count":4,"href":"https:\/\/josh.ev9.org\/weblog\/wp-json\/wp\/v2\/posts\/1069\/revisions"}],"predecessor-version":[{"id":1084,"href":"https:\/\/josh.ev9.org\/weblog\/wp-json\/wp\/v2\/posts\/1069\/revisions\/1084"}],"wp:attachment":[{"href":"https:\/\/josh.ev9.org\/weblog\/wp-json\/wp\/v2\/media?parent=1069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/josh.ev9.org\/weblog\/wp-json\/wp\/v2\/categories?post=1069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/josh.ev9.org\/weblog\/wp-json\/wp\/v2\/tags?post=1069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}