A portion of the profits will be donated to various charities, but this isn't a non-profit and will have employees with decent salaries. There seems to be a lot of potential for that to be a turn-off for customers. If any of you have had this type of experience, how did you handle the PR? Do you have any advice for someone engaging on this type of an entrepreneurial venture?
A portion of the profits will be donated to various charities- - This signifies the traditional approach to philanthropy as a process to give money. The modern definition of philanthropy is about solving problems. Problems around which social enterprises could be established. On the same line, you should talk about the problem that you shall be solving, not the intent to donate a part of earning. Donation based mindset to philanthropy, yet omnipresent, is ephemeral.
There's no difference between a typical business organization and philanthropic venture. Both needs model to monetize- not VC money- and achieve financial goal to last long. If philanthropic fund is what you intend to target by speaking philanthropy then it's better to avail them to bootstrap than considering an end in itself.
If you want to commit to some social cause then you should position yourself as a for-profit venture with philanthropic model than a philanthropic organization.
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Answered 6 years ago