Could Your Business Profit By Doing Good? | Magic Money Clip

Social business, as we understand it today, seeks to promote a worthy case while earning a profit. If you are trying to develop a new business, perhaps you could incorporate this idea into your own strategy and goals. These days, social business has become very good business!

Having some worthy social policies is hardly a new thing for businesses. There are, actually, some very ethical business models from the past. We tend to pay attention to the bad guys, and sometimes the good guys do not get a lot of notice. But this new term, social business, tends to refer to enterprises that really focus on helping some worthy cause as a big part of their business model.

Is a social business the same as a not-for-profit company? As we understand it, a social business is not exactly the same thing as a non-profit business. A non-profit, as the name implies, does not make a profit for the owners. It may, however, pay salaries to employees. A social business does seek to earn a profit, but it uses some of the profit to further social goals.

One good example is peer to peer lending. The investors do hope to turn a profit. However, borrowers may also hope to get loans with more friendly terms than they could get from major financial companies.

How do these businesses work? Actually, there are several types of social business models. Some may do business with the aim of giving a share of profits to worthy causes. Some may offer a service, at a lower cost, than traditional companies offer that service at. Others may just aim to do their business in a socially responsible manner. Still others may concentrate on employing a certain group of people. And finally, some of these companies manufacture goods. For every good that is purchased by a consumer, the company may donate another product to the needy.

You can see that there are several ways to make a business socially responsible. You may also be starting to see that many different types of companies could adapt this model. They could still make a profit, but could do it while benefiting people locally, nationwide, or all around the world.

Social business may also be very good business. A lot of consumers would not mind spending their money at a company that promotes some of the same ideas that they have. They may even be willing to pay more to do it.

Consider an example. One small comany cooks their own line of healthy, tasty, organic soup. As part of its social business, this soup maker will donate a can of soup for every 12 cans of soup purchased. Would you be willing to purchase 5 cans of soup, instead of your normal brand, if the soup was also healthy and tasted good? If so, you are not alone.

Social business may be good business. Maybe it is time for you to incorporate some socially responsible business ideas into your next business start up idea!

Source: http://www.magicmoneyclip.com/2012/02/06/could-your-business-profit-by-doing-good/

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