In the words of Audrey Hepburn, as human beings grow older, one comes to realize that we were given two hands. One meant for helping oneself the other for helping others. In the business world, a winning formula is when small businesses give back. If you are looking to take your business to the next level then make sure to give back to the community. Here are the top reasons why you should focus on giving back to the community.
Helps in building company’s reputation
Does your business struggle with finding a winning formula? Do you know that giving back to the community can go a long way to discovering your winning formula? Here is how it works. As a winning formula: when small businesses give back, it helps to build respect among the member of the communities. When business and companies give, the community tends to give back to the community. A good example of how giving back to the community helped a business is Facebook. Facebook started at Menlo Park. During the initial phase, the company faces a lot of public criticism with the company, setting up its headquarters in the town. However, Facebook spent $120 million in a donation for campuses and schools within the areas. Additionally, the company spent millions in improving bike trails to help in reducing the congestion created by the company’s employees. All of these helped the company to revise the public criticism and gain popularity among the community members and in turn, the company gained respect from the community members
Helps to improve the community
In the business world, a lot of companies tend to think there is no specific winning formula. It can be true; however, giving back is an assured winning formula for you and the company. As a business owner, you would want to set up your business in a place where the local infrastructure is damaged or is in disarray. For instance, as mentioned earlier Facebook spent millions of dollars in donation and beautification of Menlo which not only lend to a positive image but also the community and the area looked beautiful.
Corporate tax is one of the biggest expenses a lot of businesses tend to face. However, did you know that instead of spending millions in corporate taxes you can get millions in tax benefits through giving back to the community? Any CPA understands the tax implications of giving back to the community. Not only is your company entitled to tax reliefs through donations, but the company can also get tax reliefs through donations of land, property, sponsorships, and even shares. Companies can enjoy this corporate tax relief by listing their generous community giving back as business expenses.
Charities and giving back to the community events tend to attract the who and who in the community and the business sector. A lot of influential people tend to most of these charity events. As a small business, you can take this time to improve your business network by meeting the different individuals in the different sectors of the corporate world. It is a win-win situation for the business. That is why it is considered a winning formula: when small businesses give back.
Helps in improve sales
A quick question can you buy a product or service from a company you did not have genuine feelings of trust? Definitely, that is a no, and then any small business should consider investing in giving to the community as it helps create a feeling of trust and goodwill. When it comes to customer buying it comes down to the feelings and emotional experience. As a winning formula: when small businesses give back, it helps create trust and emotional connection with the company. The better the emotional connection with the business the better the sales. Well-performing businesses tend to capitalize on these emotions. Take a good example of Macy. Every year the company donates $ 1 for every letter a child writes a letter to Santa.
Helps to diverse relationship
They say if you ever want to grow you need to break out of your confined bubble. In the case of business, most entrepreneurs live and operate in a certain fixed bubble; this can be distrustful for the company. As a winning formula: when small businesses give back, it allows entrepreneurs to interact with the business leaders, other entrepreneurs, community leaders, and even activists. Remember for you to be successful in the business world, it is 80% who you know and 20% of what you know.
Helps to retain employees
Any business owner knows that finding great talent is hard; however, the hardest part is ensuring the great talent remains within your company as they are in high demand. Giving back ensuring that your employees participate helps to create a feeling of worth among the employees. Additionally, it helps create a feeling of pride especially when it comes to an association. Your employees will more likely feel associated with the company if they are involved in giving back. Furthermore, it helps to make them want to stay within the company for a longer duration. For instance, Goldman Sachs is one of the companies that have the highest employee retention. All of these come down to the company policy of giving back. In 2016, the company set up a competition where employees could compete, and the winner chooses where the company donations will go to which charity.
The corporate world is stressful and sometimes brutal. It is not a place for the faint of hearts. It is for that reason a lot of companies are working tirelessly to develop a winning strategy. The good news is that a winning formula: when small businesses give back. It goes a long way in ensuring the company’s prosperity and success. Although we have only mentioned a few of the benefits of giving back to the community by any business there are so many benefits businesses can get to enjoy. Do you know any of the benefits? Leave a comment in the comment section of this blog.