In today's fast-changing business landscape, social, environmental and technological shifts are transforming how companies operate. To thrive in the long term, startups can no longer focus on financial performance alone. They must adopt strategies that balance profitability with sustainable growth and a positive societal impact.
This balance is especially crucial in industries like CleanTech and Digital Health, where the stakes are high. In these sectors, “impact” isn’t just a buzzword—it can determine a company’s success and profoundly affect customers’ lives.
Inspired by our recent webinar, “Balancing Growth, Profit & Impact,” we’re drawing on the real-world experiences and expertise of the webinar panelists to identify actionable steps startups at any funding stage can take to align impact with business goals.
Real-World Strategies to Balance Growth, Profit and Impact
Unstructured growth often comes at the expense of long-term sustainability, whereas a laser focus on profitability may stifle the innovation needed to drive expansion.
Here are five strategies to help startups achieve a balance between growth, profit and impact.
Align your mission and vision with stakeholder interests.
"The important thing is alignment. You want to ensure that alignment is there, and if it’s not, no matter what you try to do, you’ll probably create a problem down the road." — Innocent Clement, CEO and founder of Ciba Health
For startups in future-facing industries like CleanTech and Digital Health, aligning your mission and vision with the interests of key stakeholders is essential for growth. Ensuring that your board, investors and team are aligned from the start minimizes friction and fosters collaboration, making it easier to drive the company forward.
By clearly communicating how your mission aligns with both financial goals and stakeholder interests, you set the foundation for informed decision-making and long-term growth. This alignment will also ensure that every action—from funding to product development—supports your company’s values and growth ambitions.
Communicate clear, meaningful metrics.
"Not every person’s going to connect with 210 GW hours of reduced energy consumption, but a lot of them will connect with how much money you’re saving. You have to tell the right story for that person." — Kate Heidinger, CEO of Allumia
Establishing measurable metrics that reflect both business and social impact is key to attracting and maintaining investor interest and customer trust.
Whether your startup is reducing energy consumption or improving patient care, clearly presenting the metrics that matter to your stakeholders shows that your startup can achieve its financial and mission-driven objectives, both of which are necessary to build credibility as you scale.
Build diversity into your team and investment portfolio.
"I’m happy to say that 25 percent of our portfolio is women founders, but we still don’t think that’s enough. We’re really trying to get as close to 50 percent as we can. It’s about creating opportunities and building the pipeline." — Lydia Idem, COO of LoftyInc Capital
Diversity is a powerful driver of success, especially for startups in industries where innovation is key to solving complex global challenges. Building a team with diverse backgrounds brings fresh perspectives that can lead to creative solutions, helping your startup adapt to market shifts and customer needs.
Additionally, fostering diversity in your investor portfolio ensures that different voices and priorities are represented, creating a broader-based support system for your business. By prioritizing diversity across all levels—from hiring to funding—you position your startup to meet a wide range of customer needs, strengthen its company culture and improve long-term outcomes.
Balance profitability with purpose.
"Not every customer that we work with cares that much about the environment; their businesses need to make money. You have to balance those priorities to drive impact and profitability." — Kate Heidinger
Many startups, especially in the Digital Health and CleanTech spaces, struggle to strike a balance between making a positive social or environmental impact and achieving financial sustainability. Although your mission to improve health or protect the environment is central to your vision, it’s equally important to ensure that your business model is scalable and financially viable.
Nurturing relationships with investors, customers and partners who believe in your mission can provide the support and resources you need to grow. When stakeholders are aligned with your mission, they are more likely to invest in your long-term success and become champions of your cause, helping you reach a wider audience and amplify your impact and profitability.
Create a long-term strategy for impactful growth.
"A lot of founders, especially young founders, are really just paying attention to the micro, which is your company, and rightfully so. But if you're not taking a view of the forest and understanding the macro environments in which you find yourself, it's going to be extremely tough." — Lydia Idem
Whether you're in early-stage fundraising or post-Series A, having a long-term strategy that takes a “forest view,” or balances mission with growth, is essential for sustainable success. Founders have to focus not only on scaling the business but also on ensuring that growth aligns with the impact they want to achieve.
For example, if your goal is to reduce carbon emissions or enhance healthcare accessibility, creating a growth plan that integrates both financial and mission-driven objectives will help guide your long-term decisions.
Building a Foundation for Sustainable, Impactful Growth
Balancing profitability with purpose is not simply a strategic decision—it’s an essential building block for long-term success. When you align your business model with your mission, you help ensure that both impact and financial sustainability grow in concert.
By fostering relationships with stakeholders who are committed to your mission, you create a solid foundation for responsibly scaling your business while staying true to your values. As your startup navigates new market challenges, remember that growth, profit and impact are not mutually exclusive. Applying this perspective to your business strategy will help you drive meaningful change and build an organization that thrives financially.
Meet the Panelists
Innocent Clement, CEO and founder of Ciba Health
Ciba Health is an LG NOVA Mission for the Future company
Innocent uses his experience as a physician and angel investor to further the philosophy that healthcare should be both profitable and genuinely impactful. He supports this mission by creating technology to deliver personalized, holistic care models that help prevent and reverse common and costly health conditions.
Kate Heidinger, CEO of Allumia
Allumia is an LG NOVA Mission for the Future company
Kate has firsthand experience integrating profit and purpose through her company’s work in decarbonization. Allumia, a software and Internet of Things (IoT) energy efficiency-as-a-service platform, has environmental impact built into its revenue model, making it easier to achieve the twin goals of supporting financial growth and making a positive impact.
Lydia Idem, COO of LoftyInc Capital
As the COO of LoftyInc Capital, a venture capital firm focused on investing in early-stage startups in Africa, Lydia stresses that the current market environment—with lower valuations and increased investor scrutiny—requires startups to focus on strong unit economics. She advises that if businesses shift their focus from aggressive growth targets toward building a sustainable revenue base and providing excellent customer service, then impact will inevitably follow.
To learn more about how Allumia, Ciba Health and LoftyInc Capital excel at balancing growth, impact and profit, view the on-demand webinar on the Mission Hub.
