Philantech3 has made a commitment to help build community by helping build small businesses. Every quarter we will donate our time and technical resources to helping one struggling company. We believe that the bulk of our economy exists on the back of small businesses. Our goal is to seek out struggling small businesses and help them overcome common business hurdles.
Our philanthropy projects need to meet these criteria:
- Small Business in our Local Community (within 100 miles of the greater Spokane, WA. area)
- Something that we have the ability to impact (project is an appropriate match between candidate company needs and our skillsets, bandwidth and abilities).
If a candidate company meets the first two requirements, we discuss each potential project as a team. In the end, we compare all of our options and choose the company that we will work with for the upcoming quarter.
For these projects our main focus will be business leader development, with the goal of helping small business owners become business leaders. If we discover that technology assistance is needed, we will be happy to assist in that area as well.
According a recent article in the Washington Post, 50% of small businesses fail within the first four years of opening their doors. (Kessler, 2014) Jay Goltz from The New York Times, says that mistakes caused by the owner are most often the culprit. (Goltz, 2011)
We have found that many small businesses are started by a “technician” that is really good at their craft. They often start out working for a company in their chosen trade. Over time, they look around and decide that they can probably take on enough work to replace their income, and gain freedom from an employer. This technician/owner starts to get really busy, so they hire their first employee. There is not a job description for this employee, just a basic understanding that they pick up anything that the boss gives them to work on. This works alright for a while and things get busier. They hire another employee and so on. Pretty soon, the technician/owner’s product starts to suffer because he/she is not doing all of work. In the book The E-Myth, Gerber talks extensively about this cycle and how it leads to frustration and failure.
Our primary reason for focusing on leader development is that most (if not all) of the top 10 reasons for small business failure, is because of the owner. We feel that if we can give the owner the tools needed to recognize and change behavior patterns that lead to failure, our community will benefit. As companies have healthy, sustainable growth, they hire people, spend money and provide valuable goods and services in our market economy.
If you would like to be considered for a philanthropy project, please contact us.
Goltz, J. (2011, January 5). Top 10 Reasons Small Businesses Fail. Retrieved from NY Times: http://boss.blogs.nytimes.com/2011/01/05/top-10-reasons-small-businesses-fail/?_r=0
Kessler, G. (2014, January 27). Do nine out of 10 new businesses fail? Retrieved from Washington Post: https://www.washingtonpost.com/news/fact-checker/wp/2014/01/27/do-9-out-of-10-new-businesses-fail-as-rand-paul-claims/?utm_term=.3257b7efa089