BALANCING PURPOSE + PROSPERITY
THE JOURNEY OF A SOCIAL IMPACT ENTREPRENEUR
As we enter our tenth year, it's a moment of reflection and anticipation. What began as an experiment to build a people-centered practice has evolved into a transformative journey, not just for our clients and consultants, but for me as a leader and social entrepreneur.
Since the onset of COVID-19, we've been busier than ever, adapting to new challenges and opportunities in the social impact sector. This period of intense activity has only reinforced the lessons we've learned over the past decade. Here's what I've discovered about building a purpose-driven business that strives for both impact and sustainability.
As the founder of a social impact consulting firm, I've navigated a landscape rich with both triumphs and challenges. My journey offers valuable insights for innovative leaders striving to create positive change while building a sustainable business. This article explores the successes, obstacles, and lessons learned from my entrepreneurial voyage, focusing on the ripple effects our work had on clients, consultants, and the broader social impact ecosystem, as well as my own growth as a leader.
THE PINNACLE OF SUCCESS
Our crowning achievement was the creation of a thriving virtual company that, by 2021, had grown to gross over $4 million in revenue - all without traditional investment capital. We built a vibrant community of 50 diverse consultants and served more than 50 clients nationwide, designing and implementing over 100 projects focused on social change, justice, and equity initiatives.
This success stemmed from our innovative approach: leveraging the emerging gig economy to create a supportive community for consultants passionate about social change. We identified and filled a critical gap in the social impact sector by integrating high-level business planning services with access to strategic networks. This unique model empowered our clients with the tools and talent they needed to amplify their impact and navigate the complex landscape of social change.
As a leader, this experience taught me the power of vision and persistence. It reinforced the importance of staying true to our mission while being adaptable in our methods. I learned to trust my instincts about market needs and to build a team that could bring that vision to life.
IMPACT ON CLIENTS
Our clients, ranging from grassroots organizations to established nonprofits and social enterprises, experienced transformative growth through our partnerships. The work was consistently excellent, with clients thriving and achieving significant improvements in their operational efficiency, fundraising capabilities, and overall impact measurement.
For instance, a small racial justice nonprofit increased its annual budget from $500,000 to $2 million within two years of our engagement, dramatically expanding its reach and influence. An arts organization we worked with raised over $10 million in funding, secured a permanent space for their operations, and established an endowment to support their work in perpetuity.
These success stories illustrate the ripple effect of our work. By strengthening these organizations, we indirectly impacted countless individuals and communities served by their programs. We didn't just help our clients survive; we empowered them to thrive and expand their reach, creating lasting change in their respective fields.
This impact on clients reinforced my belief in the value of our work and strengthened my resolve to maintain high standards. It taught me the importance of setting clear expectations and delivering consistently excellent results. As a leader, I learned to balance empathy for our clients' challenges with a firm commitment to pushing them towards transformative change.
IMPACT ON CONSULTANTS
Our model had a profound effect on our consultant community. We created a trusted network for collaboration, a marketplace for hiring, and an archive of successful models and strategies. Consultants were matched with impactful projects and teams filled with passion and dedication. We emphasized cross-training outside areas of expertise, fostering a culture of continuous learning and adaptability.
Our platform became a springboard for career advancement, with many consultants using their experience to launch successful ventures or secure executive-level positions in major nonprofits and social enterprises.
Managing this diverse and talented group of consultants taught me invaluable leadership lessons. I learned to "hire slow and fire fast," recognizing the importance of finding the right fit not just in skills but in values and work ethic. I developed the ability to manage through agreement rather than personality, focusing on clear expectations and deliverables rather than personal relationships. This approach fostered a more professional and accountable work environment.
CHALLENGES IN BALANCING PURPOSE AND PROSPERITY
Despite our successes, we faced significant challenges in balancing our purpose-driven approach with financial sustainability. The social impact sector, while appreciative of our work, was not quite ready to deeply invest in purpose-driven approaches at the level required for our long-term sustainability.
As a Black woman leading an innovative business, I encountered many of the same issues faced by colleagues in similar positions. These included:
Undervaluation of Services: While our work set new standards and was highly regarded, there was a persistent gap between the value we provided and what clients were willing or able to pay.
Limited Investment: Despite a robust pipeline of work and consistent client satisfaction, we struggled to secure the investment needed to scale our operations effectively.
Pricing Pressure: Our sliding scale fee structure, designed to make our services accessible to a wide range of organizations, sometimes led to undervaluing our work in the broader market.
Resource Constraints: We often found ourselves engaged in ongoing annual and strategic planning with limited resources, despite actively seeking investors and pitching to potential funders.
Scalability Challenges: While we successfully paid for the work, the people, and the engagements, what we needed to ensure scaling was a higher price point for our services.
These challenges forced me to become a stronger, wiser, and sharper leader. I learned the critical importance of setting the value of our work and sticking to it, recognizing that when we truly believed in our worth, clients and team members would align. This realization led to difficult but necessary conversations about pricing and value, both internally and with clients.
I also learned to maintain a standard of operations that reflected the quality of our work and our commitment to excellence. This meant sometimes making tough decisions about which clients to work with and which projects to take on, always keeping our long-term sustainability in mind.
Despite these challenges, we observed positive shifts in the field. Many philanthropic funders began to recognize our work as a vital process and delivery mechanism, setting the tone for artists, innovators, social entrepreneurs, and activists. This recognition led to increased underwriting of our work, albeit not always at the level needed for sustainable growth.
This gradual shift in perception reinforced the importance of patience and persistence in driving systemic change. As a leader, it taught me to celebrate small victories while keeping an eye on the bigger picture. I learned to be an advocate not just for our clients, but for the entire sector, pushing for greater recognition of the value of purpose-driven work.
As we refine our model, we're focusing on creating a more powerful engine for social change while ensuring financial sustainability. Key areas of focus include:
Developing a more nuanced pricing strategy that ensures accessibility for clients while reflecting the true value of our services.
Enhancing our impact measurement and communication efforts to better articulate the value we bring to clients and the sector.
Building stronger partnerships within the social impact ecosystem to create a more resilient network of support and opportunities.
Investing in our infrastructure and team development to support sustainable growth.
This forward-looking approach has sharpened my strategic thinking skills. I've learned to balance short-term needs with long-term vision, and to be more proactive in shaping the future of our organization and the sector as a whole. The journey of social entrepreneurship is about continuous learning and adaptation. It's about finding that sweet spot where purpose meets prosperity, where profitability fuels greater change, and where success is measured not just in dollars, but in lives improved and systems transformed. As a leader, this journey has transformed me. I've become more resilient, more strategic, and more committed than ever to our mission. I've learned to balance idealism with pragmatism, to lead with both empathy and firmness, and to never lose sight of the impact we're striving to create.
To my fellow social entrepreneurs and innovative leaders: remember that it's possible to do good and do well. The key lies in finding the right balance between purpose-driven approaches and sound business practices, always keeping your mission at the heart of what you do. Let's continue to push the boundaries of what's possible in creating a more equitable and sustainable world, while also advocating for the true value of our work in driving social change. Our journey may be challenging, but the impact we create makes every struggle worthwhile.
These hard-earned insights have become more than just guiding principles for the agency; they've become the foundation for a new chapter in my journey. As P.S. 314 continues to thrive, I've begun sharing these lessons more broadly through talks, workshops, and formal coaching sessions.
Soon, we'll be releasing our ten-year anniversary lookbook, offering a deeper dive into the lessons we've learned along the way. But for now, I invite you to join me on this parallel journey of leadership, purpose, and prosperity. As I continue to explore the delicate balance between doing good and doing well, sharing my experiences and insights along the way.
Sign up for my weekly newsletter, PSA and be a part of this ongoing conversation.