As a founder of a social conscience business it can be tempting to seek out external funding to scale at a much greater rate, and you know, for purely money driven startups that can work out great.
It’s when your business is dedicated to giving back to society things take a different turn, take my creative agency Wittenhearst, the world’s first social democratic company, we give back 51% of our profits back to society tackling food and social inequality. To an investor giving 51% of your income away must sound like absolutely sacrilege.
Not only is that extremely off putting to potential investors but on the off chance an investor gave you or us a chance no doubt our social mission would suffer as Mr investor pushers for faster growth and bigger margins.
Bootstrapping means not having the luxury to mess around with business models that may not be the best suited to our values, we had to find and refine a social model that bought in cash flow asap! That’s not to say having the financial freedom to research business models is a bad thing but being profitable from the beginning can only help.
It means not feeling under pressure to deliver ambitious results, it means running a lean ship free of inertia sucking fat and it means not compromising on the values that make your social business what it is, in our case that could mean less food going to people in need in the pursuit of more profit.
Just remember, we all need to run profitable businesses, but we need to be mindful of the curse of capitalism corrupting all that we hold dear.
Never sell out your values for the pursuit of profit.
I’m Stephen, founder of the world's first social democratic company Wittenhearst. A creative agency we give 51% of our profits away towards the fight against food and social inequality.