If you live and breathe social entrepreneurship and want to make a difference in the world, then it’s time you got some help. With that in mind we’re pleased to announce the details for our first ever Social Venture Summit this October. Learn how to “do good, make money”.
The Social Venture Summit was specifically designed for:
Social Venture entrepreneurs (regardless of stage of business)
Non-profit executive directors
Startup social entrepreneurs who run high-vibe businesses* (*a ‘high-vibe’ business is one that has a mission to do good in the world, plain and simple)
Here are a few testimonials from some past clients. It’s always nice to work with such great people and to help them become successful and achieve their goals.
From Sasha Clines, Former Executive Director, Jeans 4 Justice:
“Jim Simcoe is a man of exceptional character who pours his heart into his business clients. He frequently helps a friend (or stranger) in need and will do everything in his power to help his clients . He has helped me with presentations, project analysis, and business strategies. I once learned he had the opportunity to manage an extreme amount of money which would have personally benefited him immensely. He chose not to go forward because he didn’t agree with the values of the financiers. I admire Jim’s courage.” – John Copyak, CEO Clean Power USA
Attract the right customers and your social venture will thrive. You’ll do more good, in less time, make more money and have a greater impact. It’s also easier than you think. Attract the wrong customers and your business will be a complete train wreck of missed goals, low revenues, zero impact and total frustration. Go this route and expect to have constant headaches (literally and metaphorically).
Finding the right customers to your social venture isn’t rocket science.Before we get into the two steps let’s define exactly who the right customer is.The right customer could be a potential investor (buying and investing in your social venture) or the end user of whatever you’re selling. That said the perfect customer is someone who:
Both of those elements are crucial to finding the right investors and pitching them correctly. Today we’re going to delve a little deeper into the order of your pitch and how to move your deals forward.
Raising money for your social venture is the single hardest thing you’ll ever have to do. Most people hate fundraising, aren’t that good at it and shy away from focusing on it. That said, it sure is fun when someone gives you a $100k check as an investment in your company. Like you, I like getting checks that help me fulfill my dreams and make the world better.
Quick video on why I love running a social venture. Let’s face it, being a social entrepreneur can be really challenging. You have to work your tail off and deliver a business that makes economic sense while serving the mission or cause you’ve committed to. That’s not easy so I congratulate you for even being willing to try. Very cool to see the business word moving in this direction. Great for us all.
I live with three women (2 under the age of 10), two dogs, two cats and a fish. Ours is a chaotic home with kids playing, dogs barking, just constant activity with the occasional broken dish. There is one place I can truly call my own where there are no American Girl dolls, legos or pet toys laying around and that’s my home office. I do have an office in downtown Encinitas (2 blocks from the beach) but I do work from home very often. In my 10+ years of running different startup social ventures here’s what I’ve learned:
All deals are not created equal.
When I first started in the impact investing world I chased a lot of deals and wasted a ton of time. I took deals (and chose investors) based on opportunity and not alignment. Big mistake. Now, every deal our company pursues goes through a simple 3 question filter. If I can’t get a ‘yes’ to all three questions then I don’t pursue the deal, no matter how good it looks.
The New York Yankees have been the hated rivals of my beloved Sox long before I discovered the rivalry when I was 6 years old growing up in Attleboro, MA. The chances of me wearing a Yankees hat are virtually zero. I’d rather sit through an entire Justin Bieber concert than wear a Yankees hat.
The point is that changing beliefs and behavior is hard. It takes education, cajoling and a constant “what’s in it for me?” for people to change. Even then most diehards probably aren’t going to change.
For some reason I’ve never written about how our company started. At some point I’ll probably write something much more detailed but for now here are a few highlights about the start of our company:
The birth of my oldest daughter, Kaya and the movie Inconvenient Truth were the two major factors that launched our business. I always wanted to make a difference in my career and now had an opportunity. At the time (2006) the concept of green building/green living were unheard of. I got a lot of quizzical looks when I told people what our company did. Now everyone and their mother is a HERS rater:)
The idea for the business came smack dab in the middle of the desert on a drive back from Phoenix to San Diego while listening to Stevie Ray Vaughn on the radio. We had just made a client a significant profit on a few green remodels and thought, why don’t we just do this ourselves?
I wrote our entire business plan at a coffee place by the beach in 5 straight, 10 hour days fueled by double espressos and bagels. Since I’m not a great typer my hands were literally swollen by the end of the week. Unlike many other start-up founders you might read about, I absolutely loved writing our plan. It felt like I was writing something with the potential to change the world. Sounds cheesy but it’s the truth.
Our first projects were in largely non-green minded areas like Detroit, throughout Texas and Phoenix. Our success on these projects proved that if ‘green’ worked there it would work just about anywhere.
A few years ago we did a deal with a huge international firm that committed $50M to us (to start) to launch green homes on a national level. After 6 months of working with them I ended the partnership. Without going into details, I was not comfortable with their business practices and wasn’t going to put our name on something I didn’t believe in. That said, I’m the only person I know who walked away from $50M.
From the very beginning (and to this day) I have been committed to the alignment between green and profit. I have based our business on the belief that green should be more profitable, not less. Our slogan has always been, “Do good, make money”. The more good we do, the more money we (and our investors) make.
We’ve never taken (and won’t ever take) venture capital money. We will only work with true impact investors who care about investing in a socially responsible business. Our investors are are true angel investors. They believe in our mission and our vision and are the most supportive, positive people I know. They inspire me on a daily basis and I am honored just to know them.
You deserve more from your home and your neighborhood. You deserve to live in a home that is comfortable, improves your health and costs less to operate. A house that is safe, sturdy and strong and adapts to your family’s ever changing needs.
You deserve to live in a community where you actually know your neighbors and hang out with them occasionally. A community specifically designed to support and contribute to the happiness of your life. A community that is fun to live in and collectively improves the lives of everyone who lives within.
Unfortunately real estate developers don’t build communities that way. Maximizing house size and room count are the major factors in their design. The front porch, once the dominant feature of a typical home’s entrance way, has been replaced with the monster garage. Their logic is, the bigger the house, the more profit we make. And until the last 5 years or so, they were right.
One of the things we’ve done recently is partner with a few non-profits in our business. I’ve been pleasantly surprised by the success of the program and wanted to share how it came about and how we’re moving it forward.
A few years ago I was approached to be on the Board of Directors for Jeans 4 Justice, a non-profit in San Diego that educates kids about sexual abuse and sexual violence. I believe strongly in their mission and joined their board.
Fast forward a year.
The J4J work was going well but I saw that they continued to have the same problems that many other non-profits face. They have to spend tons of time raising money which takes away from fulfilling their true work. Raising $ was their constant focus.
This bothered me enough (I hate broken systems) to come up with a plan to help them out. We designed a plan to put a profit-sharing program in place so that as our company earned revenues, we’d donate 5% to them. We actually wrote it into our corporate by-laws and it’s worked beautifully so far. They know that as we close deals they get checks.
Still, the whole non-profit donation model bothers me. It seems like non-profits are constantly asking for money and not able to provide much in return to their donors.
Below is plan that we’re doing to help a few non-profits in the area. I believe it can be good for the non-profit and good for us. I’m hoping other businesses blatantly steal my idea on this because if so, a lot more non-profits doing great work can thrive.
During one of the best summers of my life I spent numerous nights eating dinner sitting in my driveway. I would come home from work and my wife and kids would be playing with our neighbors in the yard. The kids would all be playing and the wives would be drinking wine and talking.
Each of us dads would get home, pop a beer and join the party. After a couple of hours the sun would be going down and we’d all head inside. There would be times where I’d get home at 5:30 and not step inside my house until 8pm.
What I love about those times is how spontaneous and easy it was to hang out and be part of a community of friends*. There was no agenda, no planning, no driving. It was easy, enjoyable and made living in that particular house fantastic.
If I could I would happily live in a shack in a neighborhood where my family could enjoy that sense of community again. Most people would.
In fact, in designing the ‘Healthy Home Method’, one of the biggest impacts we considered was the societal impacts of homes. Sure, we want our houses to be green and cost less to run, etc. We also want them to be designed in a way that makes it easier for people to be neighbors and build a sense of community.
Most current house designs make that virtually impossible – huge houses, with monster garage doors and no front porches. All of the activity takes place in the backyard and the front is largely for decoration. Because of this many of us barely know our neighbors.
We’re designing healthy homes with big front porches to make it easy for you to know your neighbors and create hassle-free community. Don’t worry, our houses still offer a ton of privacy, we’re just making it easier for you to hang out with your neighbors when you want to. We believe that our healthy homes can make people’s lives healthier, happier and more rewarding.
*We still get together with those friends every month for pizza night. We moved from that neighborhood more than 4 years ago but the bond with them is strong enough that we see each other once a month.
When we launched our company and raised money from our 1st investors (2007) the concept of ‘green’ homes was far from commonplace. In fact, no one really knew what we meant by green and the industry really hadn’t taken off yet. Our team (our company and our investors) enjoyed success because we were in the early adoption stage. Green homes were new and the desirability for green homes buoyed our success. Being early adopters was good for us and for our investors.
Fast forward to today and the concept of healthy homes is very new. We again are at the early adoption stage of the growth in this sector of the housing market. Again, our team (our investors and us) expect to enjoy success because we’re at the beginning of the curve on the upswing. The sector hasn’t matured yet and is continuing to grow and expand.
Since we’re one of the only companies focused on healthy green homes as a model we’ve got the double benefit of:
Increasing demand for our product (healthy homes).
I’m glad we seem to be ahead of the curve (again). Also, I’m very happy that our business model gives our investors the greatest opportunity for long-term growth.
For the past several years an idea for a better way to build homes has been at the forefront of my thoughts in green building. While their are countless energy-efficiency rating systems (LEED, BuildItGreen, Energy Star, etc) there really hasn’t been one that encompasses a whole life method of building.
That said I’m excited to announce the Healthy Home Method of building. This is my take on how to design and build a healthy home that supports every aspect of your life. This isn’t just about saving money (energy-efficiency) this is about creating a happier life. By utilizing all of these elements we can create homes that are more than energy-efficient. We’ll create homes that allow us to lead longer, happier lives and protect the planet in the process.
This blog used to be primarily for the coaching side of our business. I didn’t spend much time at all describing the work we do in the green development world since I did most of that on the Simcoe Green site.
Well, now for simplicity’s sake all of my writings will be here. Much easier to manage (my selfish reason) and probably more effective for you, my cherished reader. Really, I do cherish you, very cool and very happy that you have chosen to read this blog, if only for a few minutes. After all ESPN.com is available 24/7 so I appreciate you being here.
Also, as per the request of several people, I am going to approach these posts from a conversational level rather than a professorial level. Looking back on a few things I’ve written in the past and I feel like I come off like a professor in a tweed jacket, which I clearly am not.
I’m just a guy who chucked a pretty easy, well paying corporate career because I wanted to do something different. Something that I could be proud of and something that inspires me. I do miss the nice expense accounts and fancy sales dinners but mac and cheese is fine with me if I get to do what I love.
All investors are not created equal. Some care strictly about their returns, their IRR and pure performance of their portfolios.
Then there are investors who want to build something. Investors who be part of something historic and contribute to their legacy. These people are often called ‘impact’, ‘caused-based’ or ‘mission’ investors.
They invest in companies that:
Improve society or assist an under-served community.
Are aligned with their personal beliefs (children, community development, sustainability, etc).
Are focused on doing something great, something historic (not just creating the next Angry Birds).
Have a solid team, strong leadership and great business model.
Impact investors realize that the question is not, “Will you leave a legacy?” but:
“What legacy will you leave?”
It’s a subtle difference but looking at it from that paradigm can change your perspective dramatically. I have 2 daughters, Kaya (8 yrs old) and Noa (4 yrs old).
Regardless of my intentions, I’m daily creating my legacy right in front of them. When I pass on (50+ years from now hopefully) they’re not going to remember how much money I made or the nice clothes I wore.
I hope they remember the difference in the world their Dad made. I hope they remember our dates and the path I chose to try to make a difference in the world. Unfortunately, they’ll probably remember my bad jokes and my god awful grey sweatpants.