Tag: Small Business Big Impact

How to Build a Legacy For Your Company You Can Be Proud Of | Entrepreneur

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Opinions expressed by Entrepreneur contributors are their own.

When was the last time you took stock of what your business has accomplished and what its legacy will be after you’re gone?

Understandably, most of us are caught up in the day-to-day demands and challenges of running our company or organization while trying to manage our personal lives. Few of us ever take the time to consider what we are working towards in the long term. Where will your business be in 10 years? In 20 years? And what if, through some unforeseen tragedy, you died today and your enterprise was forced to close – what would your obituary say, and what would be written about your business?

The “obituary test” or “eulogy test” is an exercise often used by individuals to assess their personal lives. It helps ensure they’re living in a way they’ll be proud of when they look back on their lives.

It may seem like a morbid process, but it can be a powerful tool for determining whether or not you and the organization you’ve invested so much time, effort and energy into are aligned with your personal values in a way that will endure after you’re gone. Clearly, there are many business metrics for determining the material value of what you’ve built: stock price, dividends paid out and market cap, among dozens of others.

Related: 5 Factors for Planning Your Entrepreneurial Legacy

But what if you had to answer the following questions: What is your business’ legacy? What will people say about you and your business after you’re gone? Are you happy with what they will say? There are plenty of examples of companies that have left behind terrible legacies. Think of the energy company Enron, which defrauded investors, price-gouged customers and evaporated its employees’ pensions due to its corporate greed and illegal accounting practices.

Or consider Lehman Brothers, the investment bank that was revered for over a century before its reputation was swiftly erased in a few weeks during the early days of the 2008 financial crisis. Initially, Lehman’s heavy investment in subprime mortgages helped them record astronomical profits, but when the market crashed, Lehman’s downfall was rapid and brutal. Lehman’s demise led to the biggest bankruptcy filing in U.S. history — $619 billion, with investors and U.S. taxpayers left holding the bill.

Legacy is not just about how you hope you and your business will be viewed 20 or 30 years from now. It’s about creating a business culture now in which every decision, big or small, is aligned with the ultimate legacy you hope to leave. It’s about living your legacy today and every day.

For years, the corporate model was based on maximizing profits at all costs while doing damage/reputation control through charitable donations. That’s exactly how companies like Purdue Pharmaceuticals operated. They made billions by misrepresenting the data on their highly addictive drug, OxyContin, which greatly contributed to the opioid crisis that continues to haunt America today. At the same time, the Sackler family, which ran Purdue, donated millions to the arts, charities and universities. Today, with the family’s legacy in tatters, most charities and institutions refuse to deal with the Sacklers or their trust.

What these examples illustrate is that both your personal and business legacy are determined by your actions throughout the history of their existence. It’s not just the end output of profits for shareholders or a big donation to a charity after years of unscrupulous business conduct.

Consumers want companies that are committed to more than just the bottom line of profit. They want authentic companies that walk the talk. That’s why companies like Costco are both profitable and trusted. The Reputation Management Company says that Costco has “a legacy of excellence and member satisfaction,” which is one of the reasons they are the second “most trusted company in America” (behind only Patagonia), according to a 2023 Axios survey.

They offer low prices, quality products, treat their employees well and support their local communities through charitable donations, partnerships and they pay employees to “volunteer” in the community. They walk the talk and are living their brand’s legacy from CEO to frontline employee.

Related: Leaving A Legacy: Your Business’ Success Requires A Sustainable-First Approach

So, what does the obituary test tell you about you and your company? Is your company or organization creating a legacy you can be proud of that aligns with your values? If not, here are a few ideas to get you started:

Create a legacy statement: We all know about mission statements, but consider also creating a legacy statement that articulates the impact you want your business to have in the long term – whether in your community, country or the world.

It should reflect the values you want your company to uphold and the kind of legacy you want it to leave behind. Work with your team to develop the legacy statement and incorporate it into your strategic and long-term planning to ensure your company is working towards it daily.

Carry out a legacy audit: Just as you might conduct a financial audit to assess your company’s fiscal health, a legacy audit can help evaluate the level of alignment between your operations and your values. The legacy audit should cover a thorough review of your company’s values, practices, products and culture. Identify areas where you’re on track and where you’re falling short so you can create a plan to address the gaps.

Implement a values-based decision-making matrix: To ensure that your business decisions consistently reflect your legacy statement, consider implementing a values-based decision-making framework. This framework should include a set of guiding questions or criteria that you and your team can use to evaluate key decisions. For example, “Does this decision align with our company values?” or “How will this decision impact our long-term legacy?” This approach ensures that your legacy remains front and center in your day-to-day operations.

We all want to be proud of the legacy that we leave behind. If you don’t like what you see, get to work on creating the legacy you want.

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Marc Kielburger

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October 1, 2024
Why The NFL is A Leader in Social Impact | Entrepreneur

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Opinions expressed by Entrepreneur contributors are their own.

The expectations for this year’s Super Bowl were high, but I don’t think anyone predicted that this year’s event would turn out to be America’s most-watched program since the moon landing, with an astounding 123.4 million viewers tuning in to the big game.

While the Taylor Swift effect certainly was a factor in achieving that staggering number, there is more to the modern NFL than celebrity fans, touchdowns and tailgate parties. The league has grown into a case study for a corporation seeking to support its communities across the country.

The NFL has been a long-time supporter of charitable causes, but in recent years, it has significantly ramped up its player safety, social responsibility and social justice initiatives.

A visit to the NFL’s Community page on its website shows the breadth of the league’s initiatives, from environmental sustainability to domestic violence education, youth fitness, early cancer detection and prevention, and building character in young people.

I learned of the massive scope of the NFL’s social responsibility work through another of its initiatives, Inspire Change, the league’s social justice platform. Its goal is to reduce barriers to opportunity, particularly in communities of color. It operates at all levels of the league, from current and former players to the NFL teams and their owners and up to the league head office.

Related: A Former NFL Plays Says ‘Indentity Shifting’ Is the Key to Success

Inspire Change facilitates NFL investment in organizations, programs and initiatives that reduce barriers to opportunity, anchored in four pillars: Education, Economic Advancement, Community-Police Relations, and Criminal Justice Reform.

My connection to the program came from a partnership between Inspire Change, my organization (Legacy+), and the Martin Luther King III Foundation.

Martin Luther King III, his wife Arndrea Waters King, and their daughter Yolanda Renee King were seeking ways to commemorate the upcoming 100^th birthday of Martin’s father, Dr. Martin Luther King Jr. The result was Realize the Dream, a bold new initiative that aims to transform, unify and uplift America by rallying communities to perform 100 million hours of service by the 100th anniversary of Dr. King’s birth.

In seeking to amplify Dr. King’s vision of unity and launch the historic community service program, the NFL was an obvious choice. No other platform has the reach or worldwide profile held by the NFL. In 2023, the league averaged 17.2 million viewers per game for its 272 regular season games, creating a potential viewing audience unmatched in North America.

Those significant audience numbers rise exponentially during the playoffs, so we worked closely with the NFL to launch the five-year service campaign during Wildcard Weekend, which coincided with MLK Day 2024.

The game between the Philadelphia Eagles and Tampa Bay Buccaneers opened with a commemorative coin toss with Martin Luther King III, Arndrea Waters King and Yolanda Renee King.

A series of events and activations took place over the weekend, with MLK decals and Dr. King’s iconic “Be Love” message affixed to the helmets of all 318 players participating in the weekend games. The “Be Love” and “It Takes All of Us” messages were also stenciled into the end zones for all games.

The game opened by the Kings drew an audience of over 29.2 million viewers. While that number seems low compared to the viewership for the Super Bowl, the game was ESPN’s second-most watched NFL game in its history. Public service announcements aired over the weekend on all the networks covering the games (ESPN, ABC and CBS), with over 180 million viewers taking in the games and viewing the powerful Realize the Dream messaging.

Beyond its ability to reach tens of millions of viewers, we looked for the NFL’s support due to its work to raise awareness on diversity and equity issues. Along with Inspire Change, the league is on the record in committing to increasing the number of black head coaches and executives so that the diversity on the field is reflected back on the sidelines and in owners’ boxes.

To that end, the league adopted the Rooney Rule in 2003. Named after a former Pittsburgh Steelers owner who also served as the chair of the league’s diversity committee, the rule set out hiring and interview requirements for filling coaching and front office positions to ensure more minority candidates were considered and hired.

Related: Why All of Us Need to Join the Fight for Workplace Diversity

The NFL’s support for Realize the Dream is yet another positive step in accelerating the league’s commitment to diversity and inclusion, and it may already be reaping benefits.

Within days of the launch of the campaign, the New England Patriots named Jerod Mayo as their new head coach, the Atlanta Falcons hired Raheem Morris to lead their team, and the Las Vegas Raiders elevated interim head coach Antonio Pierce to full-time status.

While those three hirings happening so close to the launch of Realize the Dream could be written off as coincidence, they may also reflect how the league’s open commitment to diversity can influence the actions of ownership, teams, and players.

That is the power of corporate impact initiatives that permeate an entire organization. It would be one thing for the NFL to make a lump sum donation to Realize the Dream or some other cause, but the level of buy-in was visible on team uniforms and helmets, in the end zones on the field, all while tens of millions of viewers watched from homes and restaurants.

While corporations making donations to charitable organizations is a commendable way to try and give back, concrete actions like those being taken by the NFL deliver true impact and will ultimately be the drivers of change.

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Craig Kielburger

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February 14, 2024
Why the Current Volatile Market is an Opportune Time for Impact Investing | Entrepreneur

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Opinions expressed by Entrepreneur contributors are their own.

After the Great Recession of 2008, there was a lot of retrospection, particularly in the non-profit space where I spent much of my career. The conversation was mainly about the fact that foundations and not-for-profit endowments lost a massive amount of money in the market when they could have granted more to those serving the poor, addressing societal ills or investing in undercapitalized entrepreneurs and underserved communities. As we navigate through the current fluctuating market conditions, do investors really want to repeat those mistakes?

While the market may bounce back here and there, indicators point to significant headwinds in front of us, especially for traditionally underserved business owners and entrepreneurs. According to many experts, the possibility of a recession will persist through much of 2023.

With that in mind, investors should pull from past experiences and realize that betting on people and entrepreneurship can be more of a winning proposition than leaving money in a highly unpredictable market. Especially one being squeezed by inflation, climbing interest rates, global supply chain issues and geopolitical unrest. Instead of continuing to invest solely in a highly volatile market, this is an ideal point in time to invest for double-bottom-line impact.

I wholeheartedly believe that increasing investment in small businesses led by rising entrepreneurs – and knocking down barriers to flexible risk capital – can change lives, uplift underserved communities, and provide investors with stable returns. As the economy teeters on a possible recession and investors endure diminished returns or losses across their portfolios, most firms right now are challenged to find a nexus of opportunity.

Related: We Might Be Headed Toward a Recession, But a ‘Bigger Catastrophe’ Could Be on The Horizon

Given the high-risk environment, there may not be a more suitable time to pivot investment strategies and redirect private equity toward small businesses across traditionally undercapitalized regions. Deploying capital that supports entrepreneurs who are driving innovation and permanent job creation in distressed communities has proven to be an effective hedge against market volatility in delivering both strong financial gains and meaningful social impact. This is because small business investing is uncorrelated with the broader market returns.

Because small business investors generally use more flexible, non-traditional investment vehicles to bridge market gaps, they may be less susceptible to broader economic swings. Essentially, these types of investments, which often leverage government incentive programs such as New Market Tax Credits or Rural Jobs Acts, are tied directly to the performance of the companies receiving the investment dollars. And, of course, there is little or no tie at all to how public stocks are performing.

However modest, investments in well-run small businesses and promising entrepreneurs look increasingly attractive in today’s market, while previously “safe” investments appear risky. Morgan Stanley has stated that “sustainable investment strategies may potentially offer downside risk protection to their investors in times of high volatility,” and in years of volatile markets (2008, 2009, 2015, 2018), sustainable funds’ downside deviation was significantly smaller than traditional funds.

Despite concerns that a trade-off exists between returns and generating impact, studies have found the opposite true. A Bain Capital study of 450 private equity exits involving impact funds or impact-related causes from 2015-2019 revealed that the median multiple on invested capital for impact deals was 3.4 — compared to 2.5 for all other deals. This is what a double-bottom line ethos promises: that achieving returns lies in step with achieving impact. Companies that value and deliver impact may be higher quality investments from the get-go, making prioritizing impact an essential part of any investment decision.

Related: Why Millennials and Generation Z Love Impact Investing

Additionally, it is important to point out there is a strong opportunity to support Black and Brown-owned businesses that are particularly impacted during times of economic downturn. Firms and institutions have a tremendous opportunity to veer from traditional investment approaches that can incur steep losses in a down market and, instead, use their funds to address the structural disadvantages that have long worked against Black and Brown entrepreneurs in accessing the capital they need to grow their businesses.

Investing in smart, resourceful business owners can have an outsized impact on underserved communities, catalyzing development and increased prosperity. Because small businesses remain off the stock market, their performance may be less correlated to market performance than their larger, publicly traded counterparts.

However, this is a double-edged sword. By virtue of their size, small businesses are more vulnerable to volatile economic conditions. Right now, they face potentially severe losses in access to flexible capital and other challenges resulting from the inflationary environment.

Therefore, we now have both an opportunity and obligation to sustain communities by investing in the small businesses and aspiring entrepreneurs that hold them together. By deploying capital to businesses in capital-starved markets, we can earn stable returns and support owners striving to make it in a competitive business landscape, providing them with the readiness tools to support sustainable growth and create lasting wealth in undercapitalized communities.

The timing couldn’t be better for investors to consider impact investment options that provide undercapitalized entrepreneurs with alternative financing options. It may be their best opportunity during these volatile market conditions.

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Sandra M. Moore

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March 13, 2023
How Small Companies Can Contribute to Global Change

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Opinions expressed by Entrepreneur contributors are their own.

Small businesses can play an important role in addressing global challenges using their unique perspectives and resources. This is because they can generate new ideas, solve problems and create new products. They can also help to bring down global greenhouse gas emissions. By doing so, they can assist in reducing the impact of climate change on the planet.

Small businesses need to be well structured and have a clear purpose to contribute substantially to local and global economies. By understanding their industry, stakeholders, and environment, they can identify opportunities and seize chances to make a positive impact. Below are some ways small businesses can help create solutions to global challenges that will benefit everyone.

Related: 10 Ways Small Businesses Can Give Back Without Breaking the Bank

1. Dynamism in the marketplace

Most small businesses can respond to shifting economic conditions and counter them quickly. This is because small businesses are typically very focused on their customers. They not only understand the community‘s requirements but also cooperate with the consumers to produce the best goods possible through customer feedback programs, which many start-ups employ.

Because of this consumer loyalty, small businesses are more likely to survive tough economic times, which can aid in the development of local economies. Small firms may be less at risk of losing money during economic downturns since they generate less income than larger companies.

2. Environment conservation

One of the most talked about challenges facing the global world right now is environmental conservation, and I believe that with the emergence of small businesses, there is a likelihood that environmental conservation can be solved. Small businesses come in handy when dealing with critical environmental issues.

For instance, local businesses tend to set up shops in pre-existing buildings. This alone will minimize the destructive behavior of digging up land for construction. Larger enterprises and organizations frequently have infrastructure created for them, resulting in less green space in society and more dangerous materials. Because tiny enterprises require just a little room, they use the available space, which is what environmental conservation is all about.

Moreover, small businesses have a fruitful relationship with other small manufacturers regarding supply chain and logistics issues, resulting in cheaper products being produced. As a result, it will have a lesser severe environmental impact. Finally, small enterprises tend to locate their community centers in areas where it is more common to walk or ride. As a consequence, fewer customers and staff will have to drive to the establishment.

Related: How Startups and Small Businesses Can Address Climate Change in the Workplace

3. Community development

Small enterprises play an essential role in the community since they contribute to local economies by stimulating development and turmoil in their neighborhood. The issue of unemployment can be addressed through the establishment of small businesses. These small businesses create a pool of skilled and semi-skilled workforce who can come up with mind-blowing ideas to solve major societal problems.

Small businesses require limited education to start, giving the population lacking credible education an equal chance to compete with large companies in the global market. Small enterprises attract people who create new goods or adopt new solutions to old problems. Larger enterprises are also huge beneficiaries of the emergence of small businesses because they tend to outsource talent from small businesses to drive their sales.

4. Revenue collection

When consumers do most of their business with small enterprises, they are more likely to contribute to the community. A successful local firm makes much money, necessitating higher tax payments, including local property taxes. Local police, fire, and education systems may use this money to invest in the community. A successful small business may also increase neighborhood property values, benefiting local residents and raising property taxes for government agencies.

For small enterprises, sales taxes are still another source of revenue. Special taxing districts that concentrate on specific initiatives like lighting and sidewalk repairs to revitalize historic commercial areas and attract new consumers might be built on the support of local companies.

Related: 10 Ways to Make Your Business More Socially Conscious

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Ferrat Destine

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October 25, 2022