Investing in the stock market has always been a popular way for individuals to grow their wealth. However, Owning shares of an online business can offer more than just financial returns. It provides an opportunity to invest in a company that is aligned with your values and mission, while also participating in its growth and success. In this article, we will explore the business idea of Owning shares of an online business and its benefits.
What is a Community-Driven Online Business?
A community-driven online business is a company that operates online and is built on the principles of community involvement, collaboration, and shared ownership. Such businesses prioritize the needs and interests of their stakeholders, including employees, customers, suppliers, and the wider community. They are focused on creating shared value, meaning that they aim to create both financial and social value for all stakeholders.
Community-driven online businesses can take various forms, including cooperatives, social enterprises, and employee-owned companies. They can operate in different industries and sectors, from e-commerce and fintech to health and education.
Benefits of Owning Shares of an online business;
1. Financial Returns
Owning shares of an online business offers the potential for financial returns. As the company grows and becomes more profitable, the value of your shares can increase, providing a return on your investment. Moreover, some community-driven businesses may distribute profits to their shareholders through dividends or profit-sharing programs.
2. Shared Ownership
Owning shares of an online business offers shared ownership, meaning that shareholders have a say in how the company is run and its direction. Shareholders can participate in decision-making processes, including voting on important issues such as board elections, executive compensation, and major strategic decisions. This shared ownership also fosters a sense of community and belonging among stakeholders, creating a more engaged and committed workforce and customer base.
3. Alignment with Values and Mission
Owning shares of an online business allows investors to align their investments with their values and mission. These companies are often built around a social or environmental mission, such as promoting sustainability or reducing inequality. By investing in such a company, shareholders can support their mission and contribute to positive social or environmental outcomes.
4. Greater Transparency
Owning shares of an online business tends to be more transparent than traditional companies. They often provide detailed information on their social and environmental impact, governance structure, and stakeholder engagement practices. This transparency helps investors make informed decisions and hold the company accountable for its actions.
5. Positive Impact
Owning shares of an online business can create a positive impact on society and the environment. These companies are often committed to creating shared value and having a positive impact on their stakeholders and the wider community. By supporting these businesses, investors can contribute to positive social and environmental outcomes and help build a more sustainable and equitable economy.
How to Owning Shares of an online business;
To invest in a community-driven online business, the first step is to research potential companies. Look for businesses that align with your values and mission and have a track record of positive social and environmental impact. You can start by searching for companies that are certified B Corporations, which are businesses that meet high standards of social and environmental performance, transparency, and accountability.
2. Understand the Investment
Before investing in a community-driven online business, it is essential to understand the investment. This includes the risks and potential returns of the investment, the governance structure of the company, and the rights and responsibilities of shareholders. It is recommended to seek professional advice from a financial advisor or investment specialist before making any investment decisions.
3. Find a Brokerage
To purchase shares of a community-driven online business, you will need to find a brokerage that offers access to the stock market. Many online brokerages offer access to a wide range of stocks, including those of community-driven online businesses. Look for a brokerage that offers low fees, a user-friendly platform, and access to the stock markets where community-driven online businesses are listed.
4. Purchase Shares
Once you have identified a community-driven online business and found a brokerage, you can purchase shares of the company. It is important to monitor your investment regularly and stay informed about the company’s performance and any changes in its governance or mission.
Examples of community-driven online businesses;
Etsy is an online marketplace that allows independent creators and small business owners to sell handmade and vintage goods. The company is committed to supporting its community of sellers and buyers, providing a platform for small businesses to grow and thrive. Etsy has been certified as a B Corporation and has a strong commitment to sustainability, diversity, and inclusion.
Patagonia is an outdoor apparel company that is committed to environmental sustainability and social responsibility. The company is a certified B Corporation and has a mission to “build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Patagonia has been at the forefront of sustainable fashion and has pioneered innovative approaches to reduce waste and promote circularity.
3. New Belgium Brewing
New Belgium Brewing is a craft brewery that is employee-owned and operates with a commitment to sustainability and community involvement. The company has been certified as a B Corporation and has a mission to “prove that business can be a force for good and that sustainability is good for business.” New Belgium Brewing has been recognized for its innovative approach to sustainability, including using renewable energy, reducing waste, and supporting local communities.
Owning shares of an online business can provide both financial returns and a sense of purpose and alignment with values. These businesses prioritize the needs and interests of their stakeholders and have a strong commitment to social and environmental impact. To invest in a community-driven online business, it is essential to research potential companies, understand the investment, find a brokerage, and purchase shares. By investing in community-driven online businesses, investors can contribute to positive social and environmental outcomes and help build a more sustainable and equitable economy.