For-profit or non-profit?

On December 3, 2009, the Philadelphia City Council voted unanimously to pass a bill that creates a new sustainable business tax credit of US$4,000 for B Corporations—certified socially responsible companies (1). The decision could be a sign of what’s to come: new legislation that provides incentives for businesses to operate in a socially beneficial manner.

There are so many variations of us who are doing “ministry,” ethical capitalism, green, organic, fair-trade, eco-capitalism, humanitarian, social  entrepreneurship or just serving customers well.  I’m not sure how much benefit or restriction the legal structures provide – or inhibit.

We’re seeing some new categories emerging around the world.  In the UK, the “Community Interest Company” (CIC) enables an organizer to run a business for the benefit of the community rather than for the benefit of the owners of the company. In the US, the latest innovation is the low-profit, limited liability company or L3C, which simplifies compliance with IRS rules for yet another hybrid structure.

I met Tom Szacky recently – founder of TerraCycle – what an exciting business.   Totally for-profit, yet they are changing the world in the way we view “trash” and they’re raising millions for charities.  I think we’re seeing a positive correction from the American corporations that have been raping their communities and customers.  The internet has made everyone more transparent with fewer opportunities to hide behind skanky business practices.

Bottom line – I think the legal structure we choose is less important than having a worthy mission to fulfill.  Your mission will drive how you do business, regardless of what’s in your corporate charter paperwork.

Go Ahead — Make More Mistakes

I hear from so many people who regret decisions they have made, whether that is in choosing a career, buying a house they could not afford or investing in GM stock.  But what should we do with our “mistakes.”  Is there really any other way to learn how to do the right things and ultimately find the success we are seeking?

Most of you want to be entrepreneurs.  Here’s what Robert Kiyosaki (Rich Dad Poor Dad) has to say about “bad luck.”  He says, “Making mistakes and becoming smarter is the job of an entrepreneur; not making mistakes is the job of an employee.” 

So if you want to avoid making mistakes, just keep your job as an employee.  If you want to join the exciting ranks of entrepreneurs who are living out their passions and making extraordinary income, then step up to the plate and make more mistakes.

Here are some other well-known comments about making mistakes:

“Would you like me to give you a formula for success? It’s quite simple, really. Double your rate of failure. You are thinking of failure as the enemy of success. But it isn’t as all. You can be discouraged by failure — or you can learn from it. So go ahead and make mistakes. Make all you can. Because, remember that’s where you will find success.”  
— Thomas J. Watson, Sr. founder and former CEO of IBM

“A life spent making mistakes is not only more honorable, but more useful than a life spent doing nothing.” – George Bernard Shaw (1856-1950)

“He who never made a mistake never made a discovery.” – Samuel Smiles

“While one person hesitates because he feels inferior, the other is busy making mistakes and becoming superior.” – Henry C. Link

“I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed.”  Michael Jordan

The secret of making mistakes isn’t to avoid ever making one again – it’s to recognize that making a mistake is not fatal!  They are necessary stepping stones on your path to success.