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#017: The #1 Mistake Purpose-Driven Entrepreneurs Make (That No One Talks About)

Apr 14, 2025
 

When I first left the nonprofit world to start my own business, I thought I had it figured out.

I had the experience. The mission. The fire in my belly. I knew I wanted to make an impact—and I believed that if I just worked hard enough and served with integrity, the results would come.

But here’s the part no one warned me about…

I was trying to grow a for-profit business using a nonprofit model.
And it nearly broke me.

I see this all the time now—incredible women who are building businesses that look amazing on the outside… but behind the scenes? They’re exhausted, underpaid, and wondering if they’re doing something wrong.

And it’s not their offer.
It’s not their pricing.
It’s not even their marketing.

It’s the model.

So let’s talk about it. Because if you’re a purpose-driven entrepreneur, choosing the right business model isn’t optional—it’s foundational.

What is a “Business Model for Good”?

In short, it’s the way your business is structured to create both income and impact.

The problem? Most entrepreneurs fall into a model by accident.

Maybe you started as a side hustle. Maybe you copied what you saw other people doing online. Maybe you didn’t even realize there were other ways to structure a business that cares about people and purpose.

But if your business model isn’t aligned with your goals—financial and mission-driven—you’re always going to feel like you’re swimming upstream.

The 3 Main Types of Purpose-Driven Business Models

1. Mission-Based For-Profit

This one’s for the coaches, consultants, service providers, and course creators out there. You run a traditional business, but the heartbeat of what you do is your mission.

Maybe you’re fighting diet culture. Maybe you’re helping women become financially independent. Maybe you’re creating access to mental health resources.

Whatever your mission is, it drives every offer you create—and your business makes money because of it, not in spite of it.

This is the model I use in my own business now, and it’s the one I recommend most often to the women I coach inside my programs.

✔ Full ownership
✔ More flexibility
✔ Easier to scale sustainably

But I’ll be honest—it also comes with some mindset baggage. Many women feel guilty about charging for meaningful work. We’ve been conditioned to believe that doing good should come at a cost. It doesn’t.

Profit and purpose are not opposites. They’re partners.

2. Social Enterprise

This is the hybrid model. It blends nonprofit values with business strategy. Think: Buy One, Give One models. Revenue-sharing. Hiring from marginalized communities. Reinvesting profits into causes.

But here’s what most people don’t realize—this model isn’t just for product-based businesses.

Coaches, creatives, and service providers can run social enterprises too.
If your business bakes impact into its operations or revenue model, you might already be one.

It’s an incredibly powerful way to build trust, tell a story, and create systemic change.
But it also requires more strategy and a crystal-clear message to help people understand how your business works.

It’s meaningful—but it’s not always simple.

3. Nonprofit

Ah, the model I know best.

Nonprofits are fully mission-first. You’re not selling a product—you’re raising money. You’re applying for grants, writing impact reports, hosting fundraising events, and answering to a board.

This model is built for large-scale advocacy, policy change, and community service. It’s powerful and often essential—but it’s not always the right fit for someone who wants ownership, sustainability, or income freedom.

Most of the women I meet who are struggling to grow their business aren’t doing anything wrong.
They’re just unknowingly building with a nonprofit mindset in a for-profit world.

And that disconnect? It creates burnout, confusion, and a whole lot of second-guessing.

So, What Now?

The first thing I want you to know is: you’re not failing.

If your business feels out of sync, you’re not broken—you might just be using a model that doesn’t support the life or the impact you’re trying to create.

And that’s exactly why I created The Good Business Academy—my newest program designed to help you build a profitable business that’s structured for impact, not against it.

The very first thing we do inside the Academy is audit your current model. We figure out what’s working, what’s not, and how to shift your structure so your business finally starts feeling like it fits.

Because when you choose the right model, everything else falls into place.

The sales.
The systems.
The sustainability.

So if you're ready to build a business that’s rooted in strategy and soul, I’d love to support you on that path.

Want to go deeper?

💬 DM me on Instagram @janditchfield and tell me which model you’re building in—and whether it still feels right.

📩 Or join my free community for purpose-driven women entrepreneurs: The Business of Good Collective

Let’s get your business model working for your mission—not against it.