Risk & Business Magazine Spectrum Insurance Fall 2019 | Page 11

PROFIT + PURPOSE
Having a job restores their dignity.
So, why wouldn’t someone just start a non-
profit or charity? What’s the difference?
With nonprofits, 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
nonprofits 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 THE BUSINESS MODEL
• Your product and message IS your
marketing. By simply existing, your
customers are your salespeople.
It can become a movement. TOMS shoes,
for 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.)
Amy Jo 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.
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 living very lean in her 20’s. She quickly
grew the business to six figures in revenue
before receiving funding from investors
like Blake Mycoskie from TOMS shoes.
Do good, do well. Do double bottom line.
For profit + for purpose. For sure. +
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, JabbaWockeeZ,
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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