Is It Time To Think About How Your Business Gives Back?
Post written by Doug Hubler, President at Apex Business Advisors
Our daughter was diagnosed with juvenile diabetes at the age of 6. Talk about a scary time. Over the years, we experienced several frightening ER visits, and we’ve gone through much trial and error with treatment regimes. Chloe’s now studying graphic design at KU, and she’s managing very well. But it seems like she will always have frequent doctor appointments and forever have to stay vigilant about her diet, exercise and medication. It’s a dangerous disease. And there’s no cure – yet.
So it’s probably not surprising that Apex contributes to the Juvenile Diabetes Research Foundation. We also support the Polycystic Kidney Disease Foundation because our son suffers from that disease.
In fact, my wife, Pam Miller, and I recently attended the local JDRF fundraising event as guests of Jason Moxness at Alterra Bank. The experience that evening led me to think about how small businesses can (and should) give back to their communities.
Whether your business is involved in charitable giving or not, here are some thoughts to consider:
Choose the right cause. We have a clear family tie to the JDRF. It’s a good idea to choose a charity where you have a special interest. You’re more likely to follow through, and your employees will find it natural to rally around a cause they can relate to.
Influence. As an individual, you can only ask your relatives to support a cause so many times. As a business, you may have a much wider network of people to influence. And it may be a little easier to ask.
Work-life balance. Getting involved with a charity is a way to bring some of your personal life into the work setting in an appropriate way.
Relationship building. Networking is a critical sales tool for many businesses. And charitable causes can be a great connector. For example, we introduced the Marian Hope Center for Children’s Therapy to our friends Jason Terry and Mic Johnson at Blue Gurus. Mic and Jason helped them with their website and blogging as part of their commitment to assist a different nonprofit each quarter. It was a valuable connection for all three organizations.
Character building. Clients like to do business with people who are well rounded and motivated by something more than profits. Being involved in charities can increase the level of trust you’re able to establish with a potential business partner or buyer.
Awareness. When you add your logo to a charity’s program or list the charity on your own website, you’re helping build awareness for the cause and for your business at the same time. It can help build your brand and your credibility, too.
Consider charitable giving when you sell your business
The money you contribute to a charitable cause shows on your profit and loss statement as a discretionary expense, so it’s part of the cash flow. It’s important to characterize that expense clearly, however, so a potential buyer can understand how it fits.
Make sure to talk with potential buyers about this aspect of your business, too. Charitable giving can contribute to the buyer’s qualitative evaluation of your trustworthiness and character.
Finally, be sure to help the buyer understand any long-term relationships you may have with a charity. Are you committed to a specific period of giving? Could changing your giving affect the company’s reputation? Such relationships can contribute to the impact of your brand – an important component of the perceived value of your business.
Regardless of why or how your business decides to give, sharing your success with your community is simply the right thing to do.
Doug Hubler, CM&AP, President
If you or someone you know is interested in buying or selling a business, please call us at 913-383-2671 or contact one of our Apex Business Advisors today!
