Risk & Business Magazine Nesbit Agencies Fall 2019 | Page 9

PROFIT + PURPOSE
concept given the problem and solution are
so tightly integrated into the company’s
sellable product. The challenge has become
the core component of the company and
solution.
Research has shown these homeless
artists don’t want to be a charity case, they
don’t want a handout. They just want an
opportunity to change their life. Having a
job restores their dignity.
So, why wouldn’t someone just start a non-
profit or charity? What’s the difference?
With non-profits, there’s a finite amount
of resources. Think of a bucket that has
a certain amount of money inside. Once
you use that money, you’re done. You have
to go out and ask for more. Fundraise.
Sometimes this means filling out 14-page
grant applications for a $5k grant that take
a year to process. Slow moving. There are
so many non-profits that are fighting for
this money but it’s incredibly limited.
WITH A FOR PROFIT +
FOR PURPOSE COMPANY,
YOU’RE GROWING YOUR
BUCKET OF MONEY AND
SELF-SUSTAINING.
You have the potential to grow and scale
your business with infinite potential
resources because you’re generating
revenue while also giving back and making
a social impact.
With ArtLifting, the homeless artist
receives 55 percent of the profit, 44 percent
goes to the company and one percent goes
to shelters they work with. They license the
art, print the art on tangible items and sell
the original art as well as prints. ArtLifting
is what’s called a b-corp, a Benefit
Corporation.
What’s a b-corp? Just like an s-corp, it’s a
legal business structure that allows the
government to classify your business type.
The main difference is that with a b-corp,
you have a legally-binding social mission so
the company can protect both bottom lines
– financial and social.
Meaning, if you’re filing as a b-corp and
you have investors, they can’t push the
company away from the social mission in
order to maximize profit. The company
can protect their social bottom line so it’s
not compromised for financial success. If
investors want to shift direction or strategy
in order to make more money but that will
jeopardize the company’s social impact,
the company can legally push back and
lean on the b-corp status. There are many
companies out there that have a give-back
component, but they don’t file as a b-corp.
You don’t have to be a b-corp. As of now,
there are no tax benefits to b-corps. (Not
yet at least!)
PROS TO FOR PROFIT + FOR PURPOSE
BUSINESS MODEL:
•
Your product and message IS your
marketing. By simply existing, your
customers are your sales people. It can
become a movement. (TOMS shoes,
example). Example: ArtLifting didn’t
spend a penny on marketing to get
started.
• You know those millennials that
everyone has an opinion about? They
are conscious consumers – meaning
they care where they spend their
dollars, even if it means paying more,
and this trend is transcending the
millennial generation.
• Legal protection (b-corps explained
above)
• You can make MORE impact as a for-
profit company.
• This allows people to start for-profit
companies that serve as wage-earning,
full-time jobs vs. starting a charity
that’s a side hobby. Because this
economic model is generating revenue,
it can be a “day job” where you focus
all of your time and energy.
• You’re doing good and doing well. (Aka
– have cake and eat it too. Yummy.)
CONS:
•
Skepticism – Anytime there’s
something new, people will develop
innovation allergies. Some people
have concerns about exploitation
and companies using a social mission
in order to get more profit. (When
actually the impact has more potential
as a for-profit entity.)
•
Lack of education – The business
model simply isn’t well known yet.
This fuels skepticism and many people
are not aware they have this option
when starting a company or business
To learn all there is to know about this
business model, listen to Liz Powers
co-founder of ArtLifting, explain
her journey and the details of getting
started. She bootstrapped her company
starting with $4k and personally living
very lean in her 20’s. She quickly grew
the business to six figures in revenue
before receiving funding from investors
like Blake Mycoski from TOMS shoes.
Do good, do well. Do double bottom line.
For profit + for purpose. For sure. +
Amy Jo Martin is the author of New York
Times best-seller Renegades Write the Rules,
and host of the Why Not Now? podcast. She
founded Digital Royalty in 2009 to help
corporations, celebrities and sports entities
humanize their brands online through social
communication channels.
In 2012 Tony Hsieh, CEO of Zappos.com, and
Baron Davis, NBA player, invested in Amy Jo
and her company. After a successful seven-
year run as the Founder & CEO of Digital
Royalty and growing the business globally
into ten different countries, Amy Jo recently
exited the company.
She is currently spending her time researching
the relationship between technology and
humanity. She is also investing in other
female entrepreneurs so they can reach their
full potential.
Amy Jo is also a contributor to news outlets
including the Harvard Business Review and
Sports Business Journal. She has been featured
in top-tier media outlets including  Vanity
Fair, TIME, Forbes, The New York Times,
Fast Company, ESPN SportsCenter,  USA
Today, MSNBC and Newsweek.
Client portfolio includes:  Hilton Worldwide,
Shaquille O’Neal, Motorola, FOX Sports, The
X-Factor, Chicago White Sox, UFC and Dana
White, Dwayne “The Rock” Johnson, Los
Angeles Kings, Jabbawockeeez, Doubletree
by Hilton, Tony Hsieh CEO of Zappos.com,
Monte Carlo Resort & Casino, KC Royals and
Hard Rock Hotel & Casino.
AMYJOMARTIN.COM
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