Saturday, January 18, 2014

Importing As a Nonprofit Organization

I intend to use a nonprofit organization. As this is a new idea to me I’d like to know which portion of the class addresses the issue of nonprofits & imported goods. Basically, how long do we wait before the class gets to this exciting issue? Thanks.
Uh-oh...  I put that in there to preview who might have this idea...  it is a particularly difficult prospect for many reasons, but to answer your question directly, I don't cover or recommend importing as a nonprofit.  To wit:

1. Fatal flaw: organizing around the nonprofit mission, instead of the customer.

2. Funding from charitable giving, not customers.

3. First rate customers find nonprofits less responsive to feedback, and are disinclined to work with them.

4. Suppliers are flying blind producing for a charity, as opposed to a business which is tied into a market, with a feedback loop.  The best suppliers are disinclined to work with a nonprofit.

There is usually, with importing, something offensive about this mission, such as "preserving" a native culture, when the actual humans in those cultures no more want their situation preserved than mine wanted the English to keep them starving on the bogs 200 years ago. People want hope and change and that only comes from religion and trading freely.

Now, there is nothing to keep you from running a first rate company and then donating the profits.   This is exactly what Newman's Own brand does.

Hope that helps...

John


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