2019-12-26 / HFE
#Power2Think | Profit for Purpose
In a world of startups and everyone wanting to be their own boss, Entrepreneurship in the present context and Profit for Purpose are 2 very important things to keep in mind. During the course of this article, I would like to share my insights for millennials who are ready to set up their own businesses, challenges and how every business needs to serve a valuable purpose while continuing to generate profit.
I started Hero Future Energies 7 years back with a purpose in mind. I solely believe that if you have the opportunity to make a change in the world, why shouldn’t you? While the government is doing its bit for a better society, they’re still restricted to their capabilities and even though NGOs and social enterprises are working towards the same, they cannot go around begging for money all the time. Talking about the role of a business towards this change, I believe that you have to have significant businesses with a profit motive. They should have a large size, they should be authentic, the purpose should be genuine, they should be profitable, so they can scale up and they should be very serious, that’s how you make a profit with a purpose.
Currently, about 63% of millennial workers prefer businesses that focussed on improving society and not just generating profits. While it is essential for a company to generate profits, it is also important for the company to serve its purpose towards society. In my opinion, companies that fulfil that purpose and responsibilities are ultimately being rewarded much higher or much larger through the end customers, through the investor, through the public as well as private markets. So, it’s not only being done for the good of society, it’s being done for a profit motive as well and for your investment motive so, they all go hand-in-hand.
In terms of challenges, there are mainly 3 challenges that one faces when starting a new business. Firstly, you meet a lot of pessimistic people along the way and less who believe in you or what you’re doing and in those moments, it is important to believe in yourself, your business and keep working towards it. Second, is the dream team. It is important to keep changing the members of the team until you have a set of people that are aligned with your goal and vision. It is also important to keep changing and growing the team as and when meeting the goal and size of business increases. Third and last is to stay extremely true to your plan. People often deviate from the original business plan due to offshoots in the business, which might increase profits momentarily, but won’t sustain the business.
To conclude, in a world where everything is measured by numbers, it is important to measure success too, since numbers do happen to tell a story. I can proudly say that Hero Future Energies has been able to save 60 tonnes equivalent of carbon emissions until now. Keeping the society and sustainability at the forefront, companies like Amazon, Walmart, eBay have become part of RE100, promising to function sustainably to the hilt. In order to be able to move forward, it is important for upcoming entrepreneurs to keep profit for purpose of their business as their utmost priority.
Listen to the podcast here - Profit For Purpose
Author - Rahul Munjal, Chairman and Managing Director,Hero Future Energies