6 Issues That Prevent Missional Entrepreneurs From Having A Major Social Impact

The state of entrepreneurship is at a very exciting stage in history in terms of having significant impact around the world. More people than ever are pursuing social enterprises or business as mission ventures as a way to fulfill their desire to transform communities, change lives, and leave a positive multi-generational legacy, among many other admirable reasons.

​The problem, though, is when people of great compassion lack some non-negotiable essentials to run a profitable business that has a major social impact. Compassion is necessary to run a mission driven business, but it can't make up for lack of a business plan, ineffective business practices, or flawed execution.

​So let's take a look at six issues that prevent mission driven businesses from having a major social impact in local communities:

1. Lack of Competencies. ​Every profitable business - no matter the type - must master certain business practices that are non-negotiable, such as marketing, sales, customer service, financial management, and more. If your business isn't competent in these areas then it won't be around for very long, which means you can't help anybody.
2. Lack of a Compelling Product or Service. Sometimes social entrepreneurs forget that the number one aspect of the business has to be offering something that people want to buy. People are not buying your product because you're connected to social cause, they're buying your product because it solves a problem for them. The social cause is just icing on the cake not the cake itself. So if you decide to go the route of having a mission driven business make sure your business deals with solving real problems and producing real solutions that people want to pay you market value for.
3. Lack of a Core Business Model. Without a proven business model, which means that you have a business operation that can consistently turn your product/service into revenues. For example, many entrepreneurs come up with great ideas, but they haven't identified the right target audience, or they don't have an efficient, convenient, and inexpensive model to deliver it to their customers. Your business model must be working before you can have the real long-term impact you're capable of.
4. ​Lack of a Concentrated Effort in One Direction. Another way to say this is a lack of focus. It can be very easy for mission driven entrepreneur to get caught up in caring for the needs of the community and not lock in on what is necessary to build a sustainable enterprise. And sometimes the needs in the community are so great and so diverse that the attention of the business owner is now spread out and the lack of focus causes them to not be effective at anything or very few things. Every successful business requires a business owner who can lock in and perform necessary business functions and activities at a high level over a sustained period of time. Without a sustained and concentrated effort, the business may be busy but it won't be productive or profitable.​
5. ​Lack of Consistency. Mission driven entrepreneurship is a marathon not a sprint. One of the critical things about having a comprehensive core business model is sticking to the execution of the model overtime, and not changing that model on a whim or at every point of adversity. Consistency over time with your business model and serving the community are required for you to have sustained impact. It's better to do one thing well for a long time than trying many things with good intentions and flailing all over the place.
6. Lack of a Connection to the Community. It's one thing to want to do something "for" a community of people, but it's a totally different thing to do something "with" a community of people. Again, compassion is a wonderful thing but not if it comes off as paternalistic. And just because you generate lot of profits and then donate a lot of money to a community doesn't mean you are having a deep social impact. So get into the habit of developing strong ties to the community of people you desire to serve through your business. The relationships will prove themselves more valuable than money over time.

If I'm honest it takes a while to master all of these areas. And some of these old habits have a tendency to try to creep back into my daily routines. But I realize as I continually get better in these areas I see our business improving and our impact increasing.

Did you identify any of these areas where you can make some improvements? If yes, I would love to assist you where you need some help. Check out my online business course, 7 Week Startup, which will help you launch a new mission driven business or restart your current one in 60 days or less. We will cover all the issues identified above to ensure you are equipped to run a profitable business and deeply impact the community God called you to reach.

Don't let any of these issues slow you down or stop you from fulfilling your dreams and reaching your destiny. I'll see you in class!

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