Start-ups aren’t known for having the best success rate. In fact, an article in FastCompany claims that 75% of venture-backed startups fail. For entrepreneurs who begin a start-up without any investments or capital, this statistic can be particularly frightening. With so many varying opinions and pointers from self-made business experts, the question comes down to: what is the real secret to start-up success?
While many entrepreneurs can quickly list off reasons for failure, like raising too much money too soon or taking advice from the wrong people, there is actually one strategy that most founders do not do that absolutely is critical for a brand’s growth. When launching a start-up business, the last thing on a founder’s mind is donating money to a cause or charity. However, philanthropy is the secret to start-up success that most people don’t know or don’t talk about. Here’s why.
Giving Back Gives You An Edge in Recruitment and Networking
While you can always strengthen the SEO of your start-up’s website or drive customers to your business by utilizing various digital marketing strategies, philanthropy will give you an edge compared to other start-ups. Demonstrating social responsibility will draw more dedicated and loyal employees, customers, and colleagues to your business. Nowadays, people like to support brands that are in support of good causes.
By having a nonprofit partner or charity program in place, talented employees will be more likely to see your company as more than just another anonymous corporation. Being philanthropic will show prospective employees and people in your network that you’re dedicated to doing meaningful work in the community. This will ultimately align with a business ideology based on socially-minded decision making and generosity, which will appeal to a wide audience.
Philanthropy is Good for the Market Now & In the Future
Some of the most popular brands today are making headway in the current market by partnering with a well-known charity that entices customers, like Tom’s shoes and Warby Parker glasses. These brands are creating social awareness while simultaneously benefiting the economy by employing numerous workers and growing as a business. Philanthropy is essentially the free market equivalent of battling global climate change: while it may not make a drastic difference it will improve the world over the long-term. This is the same for start-ups that incorporate philanthropy, as a little charity that is done at the start will have a long-term payoff that’s good for the economy and for people on a larger scale.
By incorporating philanthropy into your start-up venture, you can integrate digital marketing strategies that spread your message of charity to all prospective customers, employees, and colleagues for the success of your business.