A Call to Action
Why Business Owners Have to Do the Right Thing
09/18/2009
It was an easy decision for Gravity Switch to increase our charity donations this year.
We're a small boutique web design and development firm with a great reputation in New England and beyond. We only take on about 15 new clients in a given year, and clients stay with us year after year. Over the past 6 years all of our clients have come to us after being recommended by past clients and partners, so we have been very lucky in that our services speak for themselves and we haven't had to do any marketing outreach or sales.
But from September through November of 2008 things slowed down. Many businesses and organizations held their breath, and their budgets, to see what would happen with the economy. As I spoke with other business owners (in our field and in other industries) I heard a lot of phrases like "sales way down," "credit freeze," and "laid off 40% of my workforce." Universities and non-profits lost billions of dollars from their foundations in the stock market and had put in place hiring freezes and holds on any subcontractor works
As a business owner I've always prided myself on being debt free, and keeping a very healthy supply of cash on hand at all times, and didn't have the growth and subsequent crash that many companies in our industry experienced in 2001, because we don't believe that "bigger is better." We challenge the notion that for a business to be successful for its owners, employees, and its community it must always be growing in leaps and bounds. Because of this we're entering our 13th year in business, our cash flow has been strong throughout 2008 and 2009, and we haven't had to tap into our reserves at all. We've hired new people to improve our team, and have invested resources in new endeavors and products.
In April, we reported a strong profit for 2008, but approached 2009 "hoping for the best but preparing for the worst." Sales have picked back up, and from a cash flow, employee, and client point of view we're still in very strong shape. We had a profitable Q1, but a recent article in the New York Times stated that our industry spent almost 40% less in Q1 2009 than Q1 2008, and like all business owners I'm looking critically at every expense.
One significant line item in our expense sheet is the money we give to non-profit causes every year, and so this Spring I found myself asking:
"Should I cut back on how much we donate to charity?"
The die-hard "business owner" side of me said, "Don't spend a penny on anything you don't have to until the economy stabilizes."
The "friend" in me said, "Don't spend any money on anything you don't have to to keep the business running. It's not just your job on the line, it's everyone that works with you."
But when I asked this question to someone over lunch he said, "Any core belief you put aside in times of trouble isn't a core belief." So I started thinking about what I believe, and I believe that when times are tough, you can't just look internally. You need to look outward. Things are hard all around and it's important to reach out and help those less fortunate than yourself.
I'm happy to say that Gravity Switch INCREASED our charity donations this year to 16% of our profits, and I hope other business owners will be inspired by this, and also choose to increase their charitable giving in 2009 and in the years to come.
Jason Mark
Gravity Switch Founder
I hope you find this story inspiring, and please share it with any managers or business owners that you know. If you're a business owner and you were inspired by this, please email me at jasonmark@gravityswitch.com and I'll post your inspiring stories on the Gravity Switch website. Everyone can make a difference.
Feedback & Stories
Congratulations on your donation level of 16% for 2009! That is exceptional and something Gravity Switch should be proud of. I have operated Florence I.T. under many of the same principals you mention on your blog. Imagine if all business owners came on board this mission of supporting, through our good fortune, the organizations that make the biggest differences in the world.
Your post reminded me of a conference I went to last week that pleasantly surprised me by it's altruistic, "give back" messages I heard throughout the day. The "Get Motivated" business seminar had a host of inspiring speakers (Rudy Giuliani, Steve Forbes and more) talk about not just success in business, but the next logical step of success: giving back. I, like yourself, feel very fortunate to be in a position to make a larger difference than before I became a business owner.
For me I feel obligated to do what I can. And yes, we can turn a profit too! The people I do business with want to support businesses that support their community in turn, so it's a win win situation. Thanks again for you post and the reminder that it's so much more rewarding to be in business for reasons other than just turning a profit alone. We can, and are, making a difference in the world!
Matt Lampiasi
Florence I.T.