Charity for profit is strange beast. How do you tame it?
Harvard Business’s Conversation Starter studied 50 of these companies with true “hybrid business models”, dedicated equally to their causes and their bottom lines.
- “Market premium products.” A hyrbid company won’t be able to compete on price at the low-end of a market. Customers who are willing to pay a premium for quality are more likely to be willing to pay a further premium for a cause.
- “Get comfortable limiting the rate of growth.”Expanding cautiously is especially important for these companies. If rapid expansion proves unsustainable, you may be forced to choose between compromising your mission or folding altogether.
- “Make it personal.” Get involved with the people you do business with. You can produce a better product more efficientally if your partners and suppliers believe in what you are doing, and feel they are improving their own companies’ karma by working with you.
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