As a mission-driven business, your purpose is at the heart of everything you do. To pursue your goals and make a difference in the world, you need solid finance objectives. However, it's not enough to come up with just any goal. You understand that your company can be a force for good in the world and that you can effect a positive change around you.
That is where the "triple bottom line" comes in. Your business finance objectives must consider three categories: social, environmental, and financial.
Let's look into the triple bottom line and the objectives meeting it.
What Is The Triple Bottom Line?
It's a framework for businesses to evaluate their performance in three different areas: social, environmental, and financial. Others refer to these aspects as "people, planet, and profit."
It entails balancing these elements to create a sustainable and profitable business. The triple bottom line is sometimes also called "the 3 Ps."
Business Objectives That Meet The Triple Bottom Line
There are countless business finance objectives out there. But not all of them will help you achieve a sustainable and profitable business. To pursue the triple bottom line, aim to balance the 3 Ps.
Here are some examples of such objectives:
Improving Energy Efficiency
Reducing your business's energy consumption is excellent for the planet and your bottom line. Being energy-efficient can save you money on your utility bills. You also do your part to protect the planet.
To improve your energy efficiency, you could:
Install energy-efficient lighting
Upgrade to energy-efficient appliances
Invest in renewable energy
Reducing Waste
Producing less waste has benefits for the environment and your business finances. When you make less waste, you save money on disposal costs. You also preserve valuable resources.
There are many ways to reduce waste in your business. You could:
Implement a recycling program
Reduce packaging
Reuse or repurpose materials
Minimizing Your Carbon Footprint
Your carbon footprint is the total amount of greenhouse gases your business emits. Reducing it is good for the planet and can save you money.
To minimize your carbon footprint, you could:
Invest in renewable energy
Use green transportation
Reduce energy consumption
These are just a few objectives that meet the triple bottom line. By doing them, you can create a sustainable and profitable business.
Coming Up With Business Finance Objectives Fit For Your Mission-Driven Company
Each social enterprise affects different areas and faces varying challenges. As such, there's no one-size-fits-all answer to this question.
To come up with objectives that are right for your business for good, you can do the following:
Assess your company's strengths and weaknesses. What does your business do well? What areas need improvement?
Identify your company's stakeholders. Who are the people or groups with a vested interest in your business? That includes employees, customers, investors, and the community.
Determine your company's purpose. Why does your business exist? What difference do you want to make in the world?
Identify the areas you want to improve. What social or environmental problems do you want to solve?
Set goals that are specific, measurable, achievable, relevant, and time-bound. Once you have identified the areas you want to improve, set SMART goals to achieve them.
Work with a virtual CFO. A virtual CFO can help you assess your business's financial health. They can also help you develop objectives that meet your triple bottom line. They can help you safeguard financial security as you strive to make a positive impact.
The Benefits Of Achieving The Triple Bottom Line
There are many benefits to pursuing the triple bottom line in business. Here are some of the most notable ones:
You Can Make A Positive Impact On The World
When you focus on social and environmental outcomes, you can make a positive difference in the world. That can be good for both your business and your community.
You Can Attract More Customers And Investors
Customers and investors are increasingly interested in doing business with companies focused on the triple bottom line. This type of business model can help you attract them.
You Can Boost Your Reputation
Achieving the triple bottom line can help to improve your company's reputation. That can lead to more business opportunities and a better bottom line.
You Can Enhance Your Employee Engagement
Employees are more likely to be engaged in their work when they feel they are making a positive difference. That can help increase productivity and profits.
You Can Improve Your Financial Performance
Pursuing the triple bottom line can actually improve your financial performance. That is because social and environmental objectives can lead to cost savings. They can also result in new revenue streams and increased efficiency.
Achieving the triple bottom line is a win-win for businesses and the world. It's good for your finances, reputation, employees, and the planet. If you're not already pursuing the triple bottom line, now is the time to start.
How A Virtual CFO Can Help You Achieve The Triple Bottom Line
At Profit Reimagined, we empathize with the stand you want to make. Generating money and earning profit isn’t enough anymore — we have to create businesses that consider sustainability and have a mission to make the world a better place.
Profit Reimagined understands this. That's why we ensure that we align with your mission and vision when you work with us. Your goals are the core of your business, and we help devise financial strategies that put those goals first.
If you're ready to start working towards the triple bottom line, schedule a call with Profit Reimagined. We can help women in business like you assess your financial health and develop objectives that meet your triple bottom line. We understand the importance of making a difference in the world. That's how you know you can trust us to help you achieve your goals.