PRIVATE EQUITY, OPPORTUNITY OR CHALLENGE?

 

You are not taken seriously as an investor until you are also in Private Equity. Private Equity is nothing more or less than shares in a company that is not publicly listed. Unfortunately, Private Equity has acquired a bad connotation due to certain unethical practices. But it can be done differently, with a win-win-win intention. That way, entrepreneur and investor develop a lasting partnership that benefits all parties.

 

Bring ethics to Private Equity

As an Impact Entrepreneur, I know what it can feel like when a big player wants to buy into your business. It can sound very attractive at times, and I’ve entered the negotiation process a few times. But each time it felt to me like the soul was disappearing from the company. After weeks of exhausting negotiations, the investing partner modified the business plan to the point that there was nothing left of the original vision. Fortunately, these deals have never been signed. But I have seen it happen to other entrepreneurs. Some Private Equity fonds focus on making profits as quickly as possible. They buy up shares cheaply. Then they refinance, clean up and merge. The goal is to resell as quickly as possible for as much profit as possible. Little attention is paid to the human nor to the ethical aspect. This is unfortunate because investing in Private Equity can also be a sustainable win-win-win strategy. To achieve this, it helps to know, understand, and respect the motivations of the entrepreneur.

 

The fear of the entrepreneur

Sooner or later, a successful entrepreneur gets to that point. The point where he must make a choice. Either stay small and maintain total control, or grow and bring others into the business. For many Impact Entrepreneurs, selling shares to investors is a giant step. They feel like they are giving away their business. They fear that they themselves will have less say in the project that is often their life’s work. Therefore, the sale of shares is often delayed until there is no other way. This is the moment Private Equity funds are waiting for. The investor then becomes the savior, who at that moment can also push through his conditions and will also claim control. The entrepreneur is under time pressure and no time left to look into other funding solutions. He feels like he has no choice but to accept the offer. Thus, his worst nightmare becomes true. This is a self-fulfilling prophecy.

 

Choose sustainable impact

Impact Investing takes a very different approach. An Impact Investor does not put pressure. He has time and prefers a long-term partnership over a quick win. Of course, the business plan will have to show that the project can generate income and returns. But the positive impact for all stakeholders is at least as important. As an Impact Investor, I will never benefit from an entrepreneur who wants to sell shares out of fear or despair. That is not sustainable. When I want to support in such situations, Impact Lending can possibly be a solution, as there is no transferring of the shares.
Either way, I like to take the time to get to know a business well before becoming a shareholder. An involvement as a mentor, for example, is a good way to get to know the business and its managers from the inside. Another way is simply starting with a small project. Together we set a concrete goal to be achieved. Then we provide the necessary support so that the entrepreneur can achieve that goal.

 

Get to know each other in a pilot project

It takes at least a few months to get to know a company well. First step is to get a good understanding of the current situation. What is going well and what can be improved? What are the challenges and what needs to be addressed first? Depending on the situation and the needs, we will determine the priorities and thus the focus for the next few weeks and months. Often there is an urgent need for income. Focus can then be on optimizing the sales strategy and financial strategy. Often, also operational support is needed and then I introduce other Impact Entrepreneurs from our network. These can provide support, for example, with experienced management assistants, project managers, sales and marketing professionals, communication professionals and so on. Either way, the entrepreneur remains ultimately responsible and it is the entrepreneur who must show that he can deliver. So it is crucial that the entrepreneur feels confident and can focus on the goal. It is counterproductive if he is distracted by financial or other concerns. Therefore, we might also integrate Impact Lending as a financial strategy in this phase. This will ensure that all operational costs can be paid for. When this financing strategy is properly applied then it is a safe way for lenders to lend money to the Impact Project. The principal can be secured and a periodic return can be guaranteed, regardless of whether or not the business objectives are met.

 

Private Equity as a win-win-win

Imagine there has been a time of cooperation. The initial goals have been achieved and the project is doing well. The entrepreneur is empowered and confident about the future, no matter what. Only then can Impact Entrepreneur and Impact Investor start talking about a Private Equity investment from a place of equality. Only then do you get a business relationship that is sustainable. It can only arise from the free will of parties to consciously make the commitment. With full intent, not from acute necessity. But from a conscious choice to strengthen and support each other in the long term. Even then, in the most optimal circumstances, it often remains a big step for the entrepreneur to transfer part of the business to another party.

 

Choose the right structure

When the entrepreneur is eager to continue working together and the Impact Investor is still interested in buying shares. Then it’s time to start discussing which legal structure is best suited to seal and sustain that partnership. Which corporate vehicle is the best choice, today and in the longer term? How will you spread risk? Which jurisdiction is most appropriate? Will you work with a holding company and with management companies? What is the impact on taxes? What exit strategies are available? What opportunities do you have for doing business internationally? Perhaps you also want to live abroad? What does that mean for social security, health care, retirement? What about your family, your partner and kids’ education? In short, how will you arrange all this properly, so that you can continue to make an impact in a sustainable way? Yes, even across multiple generations. There is an awful lot involved. It is therefore very valuable to exchange knowledge and experience with other Impact Entrepreneurs and Impact Investors. Still, every situation is specific and different. So be sure to seek advice from independent experts. A second or third opinion in this matter is certainly not an unnecessary luxury. You have always multiple solutions and multiple options, each with their pros and cons.

 

Enthusiasm as a measure

As an Impact Investor, you are eager to support entrepreneurs. From this enthusiasm, you often fail to see an underlying fear or need. Take your time to explore the motivations of the entrepreneur. This person should be at least as enthusiastic about the idea as you are. If not, it is probably not a good idea to invest in the Private Equity. In some cases you can offer Impact Lending as a solution. Private Equity can only be considered when all parties consciously and enthusiastically opt for the idea.

Let’s share experience and expertise

If you are an Impact Investor, I invite you to connect and explore how we can join forces and make a sustainable win-win-win impact.

You are most welcome to participate in our monthly open Connection Call. Check out www.QuantumPreneur.com/calendar for an overview of the planned online meetings.

If you would like to discuss actual Investment or Lending opportunities, starting from 1K, let’s schedule a private call. Pick your time and date using this link : https://quantumpreneur.com/scheduler/schedule-private-connection-call/

MAKE A PROFIT WITH IMPACT INVESTING

 

In 2012 I decided to create more freedom for myself and my family. So I handed over my business. I sold my house. I set up passive income streams. Then came the ultimate question: What is the best way to manage this money now? On the one hand, I wanted to secure my money for the future. I wanted to make a nice return so that at least purchasing power would be preserved. On the other hand, I also wanted something useful to happen with the money. Something that would lead to a sustainable change for the better. This is how I came in touch with Impact Investing.

 

SELECT PROFITABLE IMPACT PROJECTS

As a starting entrepreneur, your biggest challenge is to establish steady revenue streams. I described some strategies for this in a previous blog article. As soon as you master that one, you get a new challenge. How do you make sure that you manage that income wisely, so you make a recurring return? Yes, as an entrepreneur you can reinvest some of it back into your business. But you also want to make a sustainable difference, leave a legacy, help build a new society. Luckily, there are many impact projects to choose from.

Impact investing is relatively new. The term is often used very broadly for both funding and financing sustainable projects. I also notice that there are quite a few projects that claim to be sustainable while they are not. Greenwashing is truly a thing. When I select Impact Projects, I look at several criteria.

 

Makes lasting impact

I prefer Impact Projects that grow sustainably and intend to create lasting change over the long term. The sooner a project becomes financially independent, the better. This is why I always look at the growth and stability of its own revenue streams. It is never healthy for a project to depend on the goodwill of third parties. Be it grants, donations or investors. A project that wants to make lasting impact must ensure sufficient revenue streams of its own.

 

Helps build a new world

There are quite a few fields where innovation is welcome. More so, many domains can be completely rethought and reshaped. I am thinking of the educational system, health system, financial system, food production, media distribution, energy supply, waste management… In short, there is a wide choice of sustainable projects that offer a solution in one or more of these domains. Personally, I like to invest in sectors I have an affinity with, or in companies whose activity and products I understand. This is why, for many years, I have been supporting Impact Projects in the fields of education, media, entrepreneurship and (international) living. Recently, I’ve also been exploring recycling & upcycling, regenerative farming methods, autonomous systems of renewable energy, shoes and clothing made of vegetable leather.

 

Makes at least as much profit

In the old way of thinking, you have 2 types of organizations: profit and nonprofit. Profit companies have the ultimate goal of maximizing profits. Non-profit organizations, according to the name, are not allowed to make a profit. This, of course, is the biggest nonsense. Established nonprofit organizations are often very commercial as well. Anyway, as always, the ideal approach lies in the middle: a healthy social enterprise that makes a profit and does so in a sustainable way, with respect for people, animals and planet. Win-win-win. These are the Impact Businesses or Social Ventures I like to support.

 

Runs less risk

In times of crisis, people start saving first on expenses that are not vital. That’s why I like to invest in those sectors that do remain vital such as alternative forms of energy generation, drinking water and food production. Social housing will also be a major challenge. Immigration and natural population growth, will soon leave millions of people homeless, without any shelter. Even today, finding affordable housing is already a problem for many. Both in Europe and internationally.

 

Ensures a win-win-win

For me, this is the most important criterium. Is there a win-win-win for all stakeholders. Does it benefit all parties involved? The entrepreneur, the team, the suppliers, the customers, the environment, … Wherever the project is, in Europe, Africa or Latin America, it is a must to talk with local people and local authorities. When investing in a region, I like to depart from the question: what do the local people need first? For example, in the Netherlands we start with nature preservation. In Costa Rica we start with the school for entrepreneurs and leaders of the future. In Tanzania, it’s about creating jobs and social housing that benefits people in rural areas. And so on.

The greater the positive ripple effect, the more successful the Impact Project. That’s why I believe communication and education are indispensable. Any blog, any video, any book, any presentation, any training… can inspire and activate people to make a change. They, in turn, can inspire and empower others, consciously or unconsciously. The positive ripple effect of your actions will often go further than you realize. I remember one day after giving a keynote, I was approached, by a woman who came to thank me. She had been suffering from depression and burnout. She had started reading my books and that inspired her to get back on top and pay it forward. Now she helps other women, who used to have a burnout, to become passionate entrepreneurs. Mission accomplished.

 

CHOOSE THE IMPACT PROJECTS THAT SUIT YOU

Impact Projects come in all shapes and sizes. Start-ups or scale-ups. Small or large. Short-term or long-term. High or low risk. Here are some strategies and solutions I personally like to use.

 

Impact Lending for a specific project

Maybe you have an idea for an Impact Project. Maybe you know someone with an Impact Project that you would like to support. This Impact Lending can be done with 2 or 3 parties. The Impact Lender lends an amount of money. The Impact Project receives the financing. You can choose to work with a third party who also secures the risk. This offers more options and more flexibility. For example, an Impact Lender can lend an amount for a period of 3 years. While the project gets 10 years to repay the loan. Thus, the Impact Lender can often make a higher and faster return. Moreover, it ensures the repayment of the principal at the end of the term. I like to use this formula for Impact Projects where I am not involved as a director myself. This way, my return and principal is secured, regardless of the profitability of the Impact Project.

 

Impact Venture Capital

With Impact Venture Capital, you buy shares of an Impact Business. These are often innovative start-ups with a clear and measurable social or environmental objective. Some popular sectors include renewable energy, regenerative agriculture, recycling and upcycling, new manufacturing applications using recycled materials. No need to say this can be high risk investment. So I use this strategy only for Impact Projects where I have a say in, being a director, shareholder, or mentor. In those roles, I share responsibility for the profitability of the Impact Project.

 

Micro-Finance

I am a big fan of micro-finance. About 25 years ago, I made a video story about a micro-finance project for women in Benin, Africa. Women could borrow a small amount of money from the cooperative. The idea was that they would use this to set up their own profitable small business. With this small business, they could generate income for their families again and again. Additionally, more than 80% of the women managed to pay back their loan within the year. I think this is a great way to empower people. This is why I never donate. Donations make people dependent. Micro-finance gives people a chance to become financially free. For Impact Investors it is a very easy and accessible solution to create a win-win-win and make an impact.

 

Impact Real Estate

Impact Real Estate is an emerging strategy all over the world. It involves the acquisition and development of land or buildings for a sustainable or social purpose. Some examples include the construction of affordable housing, green buildings in natural settings or buildings for community use. For example, I am involved in the Micro-Society project, both as an investor and as an entrepreneur. The goal is to co-create a self-sufficient Micro-Society in different places around the world. Then we connect these Micro-Societies with each other so that they can work together and exchange information and experiences. The ultimate goal is to co-create an ecosystem where conscious entrepreneurs and their families can live a meaningful and creative life. I invest in this project because I want to live permanently in a Micro-Society myself. But even for Impact Investors who are not planning to do so, it can be an interesting way to acquire real estate in different jurisdictions.

 

Impact Lending Basket

Instead of lending to a specific Impact Project, you can choose to lend to a basket of Impact Projects. When it comes to smaller amounts, you can easily make your own mix through various Crowdlending platforms. If you want to lend larger amounts, it may be more effective to work with a third party that secures and takes over the project risk. QuantumPreneur has already selected a nice basket of Impact Projects that meet all requirements for third party Impact Lending. Guaranteed minimum returns often start from 10% annually. The bigger your deposit, the bigger the guaranteed return. This is my favorite way to easily support different Impact Projects. At the same time, it can be a great way for the Impact Lender to create a monthly passive income.

 

CONCLUSION

The myth that as an investor you must choose between making a profit on the one hand or supporting a good cause on the other is long outdated. Sustainable Impact Projects do have profitable business models. We also know from Quantum Thinking that there is no need to choose. All you want can be there at the same time. You can make both profit AND make impact. You can invest safely AND receive a high return. You can be in an economic crisis AND generate a high recurring (passive) income.
Fortunately, there are more and more Impact Businesses that understand and apply these principles. This creates unique opportunities for Impact Investors, now and in the future.

LET’S CONNECT

Would you like to connect and explore more Impact Investing solutions? You are most welcome to contact us by mail or join us in the free Connection Call.

GET FUNDING FOR YOUR SOCIAL PROJECT

 

We often receive requests from social projects asking for our help with funding. When I inquire about the figures, I receive an extensive excel sheet with all expected expenses and costs. But I rarely find anything about the expected income. Yet it’s simple, you don’t have a sustainable project if there is no money coming in. You need to create a social business. Here are some income and funding strategies that can provide a solution.

 

YOU NEED AN INCOME STRATEGY

Just this week I talked to someone who wants to start a new regional school. The vision, mission and values had been worked out in great detail. So were the didactic approach, the team and the materials needed. What was missing was the income strategy. When I asked about that, I got the resentful reply, ‘But, we are non-profit’. As if a nonprofit should not plan actions to bring in revenue. No project can exist sustainably on occasional donations. Not even an internationally rooted humanitarian venture like the Red Cross. Every year they plan an annual sticker campaign, now it’s band-aids, to generate extra income for the regional chapters.

If you want your social project to succeed, you too have to take actions to generate income. You need a strategy that ensures you have the funding for major purchases and investments on the one hand. You need a strategy for recurring income so you can pay for your operational costs, on the other. Here are some possible income and funding strategies that you too can implement for your social project, aka social business.

 

Connect with Impact Investors

Impact investors like to support social and humanitarian projects but also like to see profits. By no means does this have to be contradictory, quite the contrary. This way Impact Investors support those projects that are more viable in the longer term. So, if you want to convince Impact Investors, you will have to demonstrate the potential of your project for both social impact and financial return. In fact, the QP Canvas was developed for this purpose. Impact Investing is fairly new and trendy. Apparently, it looks good to position yourself as an Impact Investor on certain social platforms. Be sure you do your research and connect with serious impact investors that align with your project’s goals and values.

 

Pre-sell your service

Turn your social project into a social business. Develop a product or service that delivers value. Offer this to a large party in pre-sales. Ideally, you offer your product to the end customer because this is ultimately the one who will benefit. If you have a social project in line with the (local) government, you can possibly offer this service to the government as well. To win government contracts, you need a clear vision, mission, and plan. The reputation and credibility of partners will also be decisive in this process.

 

Run a crowdfunding campaign

Crowdfunding is a way to raise money from a wide audience through an online platform. It often involves smaller amounts of money borrowed for several years. This is a very low-threshold way to start but therefore not always successful. You need a large network of followers and fans who know you and want to support you. This requires a serious effort in marketing and communication. Therefore, I prefer to use Crowdfunding as a marketing and branding tool in the scale-up phase of the QP Quest. It is less effective and less suitable as a funding tool in the start-up phase.

 

Offer Impact Lending

Often family and friends are first approached to lend money or even put money into a new project. This is a delicate matter. If things go wrong and you can’t repay then it affects your private relationships. Especially if larger amounts are involved. Also, when borrowing money from third parties, it is always safer to work with an intermediary that supports Impact Projects. With Impact Lending, your social project gets the funding you need. At the same time, lenders are assured that they will be paid their returns and principal as agreed, even when your social business is not yet generating the revenue to do so itself.

 

Sell shares

Investors pay a sum of money and in return they become co-owners of your social venture. This can be very interesting for you. Sometimes it is better to own a small part of a large social business, than a large part of a smaller social business. Ownership of shares does not automatically mean control in the company. You can sell shares without control. Often, however, a large shareholder will make it a condition to also have a say. When this is an experienced party, this can even be an advantage. The investor can then also be a mentor and tap into his network and resources. Of course, this only works when you are aligned and share the same vision, mission, strategy, and values.

 

Get grant or non-recurring loan

There are opportunities to apply for grants or non-recurring loans, through various governments and foundations. If you apply, tailor your proposal to the specific interests and requirements. Make sure you demonstrate the potential impact of your social, humanitarian or environmental project. When it comes to relatively small amounts, the procedures and administrative workload are often manageable. But when it comes to larger amounts, my experience is that it takes a lot of work to set up all kinds of documents while the chance of success is rather low. Grants often cover only a small part of the total cost. Therefore, I see this as an extra, but certainly not as the most important stream of income for social projects.

 

Negotiate supplier credit

If you are temporarily unable to pay for certain services, you can also partner with the providers of those services. If you serve the same target market, I’m sure there are ways to create a win-win-win where each party receives what they need. I am not in favor of pure barter deals. These are often not sustainable in the long run. Moreover, those negotiations are often time intensive and you don’t always reach an agreement. It is more sustainable, and often faster, to negotiate payment terms and a partner price. That way, you may pay later, or less, but you pay correctly for the services and products you need.

 

Issue Social Impact Bonds (SIBs)

Social Impact Bonds (SIBs) are a type of public-private partnership to finance social projects. A private investor provides working capital for a social project. The social business in charge provides a service to the public sector. In return, the public sector pays for the service provided. If the social business is not successful, the investor receives no return and no refund of the principal. SIBs are designed to transfer risk from government and service providers to investors. These are complex financial instruments and this is certainly not appropriate for every project.

 

Get sponsors

This is for you when you have built a powerful brand that stands for a clear message. In that case, it may be of interest to certain high-capital parties to be associated with your brand. Note. This works in 2 directions. If your sponsors also have a strong brand, then your brand will be associated with this brand too. So it is important to be selective and choose your sponsors wisely. It is not enough that they have the same goal, they must also subscribe to the same values. More so the perception of the outside world must be that your sponsors endorse the same values. A market survey on this is always recommended before committing to a potential sponsor.

 

 

YOU NEED AN INVESTMENT STRATEGY

The above strategies can help you generate independant income streams. But this is only part of the story. Next question is how will you manage this income in the best possible way. The Red Cross, for example, has 3 major income streams: sales of goods and services, donations and return on investment! Yes, a healthy humanitarian organization not only makes profits but also manages those profits smartly so that income is generated from those investments. Therefor, an investment strategy is an indispensable part of any sustainable income and funding strategy.

LET’S CONNECT

Are you looking for new opportunities to optimize your income, funding or investment strategy? You are most welcome to contact us by mail or join us in the free Connection Call.

FROM QUANTUM THINKING TO QUANTUM BEING

 

Time has shown that classical science cannot explain everything. Studies contradict each other or hit a wall. Still, the principles of classical science are deeply embedded in our daily thinking and doing. When I began to delve into quantum physics, I quickly realized that I had to forget everything I had ever been taught. For me, this was the beginning of a new way of thinking and being, and thus a new way of doing business and making investments. Yes, this was even the start of a new lifestyle.

 

7 QUANTUM PRINCIPLES

Quantum physicists have made several disruptive discoveries. Over the past few years, I explored how to apply these in my daily life. I am happy to share with you how these quantum principles help me thrive, both as an Impact Entrepreneur and as an Impact Investor.

 

1. You are a creator

Whatever it is that you want to establish, whatever goal you want to achieve, it already exists in the Quantum field. It is the presence of the observer that determines the single outcome. As humans we have an amazing creative power. Be conscious of what you wish for. When you take the right action at the right time, it can become reality. Even when things are going other directions and are taking longer than you had expected. You still are and always will be a creator.

 

2. Everything is possible

In the Quantum field there is no duality. You do not have to choose. There are no dilemmas. Shift your thinking from ‘or-or’ to ‘and-and’. You do not have to choose between being a successful entrepreneur OR being a good parent. You can be both a successful entrepreneur AND have time to spend with your family. Visualizing your ideal ‘and-and’ life, is the first step to creating it.

 

3. There is always a solution

Even if you do not know yet, how you will do it, or with whom you will do it. There is always a way. Just start and go for it. Yes, there will be challenges on the way. You will overcome fears and step out of your comfort zone. You might have to become visible and share your story with the world. In the end, when the right people connect at the right time, you will see that the impossible can happen.

 

4. Everybody is interconnected

We are all connected to one another. With everything you think and do, you create a ripple effect. You can make the conscious choice to create a sustainable ripple impact for the benefit of all. You can choose to be an Impact Entrepreneur and an Impact Investor. Whichever way you go, always think win-win-win and grant others their successes. When a person, a project or a business thrives, all stakeholders, as well as society, will benefit.

 

5. It’s a self-regulating field

As humans, we are part of a self-regulating field. This quantum field will always seek balance. Sometimes it is necessary for you to take action. Sometimes it is better to sit back and do nothing for a while. Then all you must do is relax. Trust that the quantum field will do what it is supposed to do. Meanwhile, do stay attentive and be ready to move when it is your time to play.

 

6. Use the knowledge of the quantum field

Making decisions is part of life. When it comes to making the right decision, ratio alone is often a poor counsellor. Also intuition, gut feeling, dreams, hunches … are valuable sources of inspiration and knowing. You can train yourself to tap into this knowing using meditation, fieldsurfing and channeling. Regular practice can help you to make the best business and investment decisions.

 

7. Expect the unexpected

We live in a complex and uncertain world. You can’t understand everything, and you don’t have to pursue that. What you can do, however, is embrace uncertainty. Get out of your comfort zone and accept the challenge. It will unlock new levels of growth and innovation within you. At the same time, be prepared for different scenarios. Spread your risk and take advantage of opportunities that may be outside your comfort zone.

 

QUANTUM IS A LIFESTYLE

When you start applying quantum thinking and doing, it has a gigantic impact on your life. You go from quantum thinking to quantum doing to quantum being. Your values and priorities change. You look at the world in a completely different way. You connect with people on a deeper level. You make choices you never would have dared to make before. Not only does this impact your professional life as an entrepreneur and as an investor. It also impacts your private life, as well as the lives of your family and friends. It’s inevitable, quantum thinking leads to a new lifestyle.

An example of this is the story of QuantumPreneur. It has been 5 years now that we started QuantumPreneur. Since then, the team has grown. Similarly, an increasing number of Impact Entrepreneurs and Impact Investors have connected with us. Sure, we support each other professionally and in growing our businesses. But more importantly, we help each other grow as humans. The QP Quest leads us to a fulfilling lifestyle that also inspires the people around us. Together with our partners, we are co-creating a new way of living with more connection, more freedom, more fulfillment, more authenticity, and more impact.

LET’S CONNECT AND MAKE IMPACT

Would you like to learn more about our Impact Projects, business and lending opportunities? If so, I am looking forward to seeing you on the next Connection Call.

QUANTUM THINKING AND AUSTRIAN ECONOMICS

 

Last weekend I was at the book presentation of ‘The Austrian School’ by Jesús Huerta De Soto. I was triggered by the phrase ‘Why entrepreneurial activities automatically make a more just society’.

 

I absolutely believe that entrepreneurs can co-create a just and prosperous society if they connect and put the greater good first. In fact, that is exactly what QuantumPreneur is all about, connecting Impact Entrepreneurs with each other and with Impact Investors to create projects that have a lasting positive impact.

But do entrepreneurial activities automatically make a more just society? Being an economist myself, I must confess I have some reservations about this. Does this apply to every entrepreneurial activity? Does this really happen automatically? In a world of conscious entrepreneurs or Impact Entrepreneurs as I like to call them, I believe it can indeed be so. Impact Entrepreneurs per definition create a win-win-win and bring value to the market. Today, unfortunately, not every entrepreneur creates a sustainable positive value. Many still think win-lose instead of win-win and do not have the common good in mind. Even for Impact entrepreneurs, it requires an ongoing state of being aware, staying aware and choosing with awareness. In my opinion, what is consciously decided is consciously created and therefore does not happen automatically.

Moreover, I wonder what comes first. Are there conscious entrepreneurs first who then build that just and prosperous society? Or is there a just society first so that entrepreneurs have the opportunities and freedom to create. As a Quantum Thinker, I would say both are there and both are needed. The growth of the conscious entrepreneur will enhance the growth of the just society. Conversely, the growth of a just society will also have a positive impact on the growth of conscious Impact Entrepreneurs. Education is an important driver in this. This is why I think it is so important that we start our private high school next September. Educating and empowering young people helps them become the entrepreneurs and leaders that the new society needs today.

 

Entrepreneurs in Austrian Economics

Economics is a complex and holistic science. Human action and the creativity of the entrepreneur are key. Knowledge and information are subjective and constantly changing. In all of this, I absolutely agree with the Austrian school.
As Ferre Clabau nicely summarized it:
People have desires and needs.
From there, people connect with each other and start acting.
People learn from each other, develop, and create new knowledge.
This influences desires and drives.
People reconnect and so on.
This is a complex system of entrepreneurs interacting and growing on an ongoing basis. This cannot be captured in a statistic.
Values and beliefs play a major role in this process.

 

Quantum thinking for entrepreneurs

Indeed. Your thinking, your values and how they develop over time determine how you act as an entrepreneur. However, how people think is influenced in part by the spirit of the times. For decades, Newtonian thinking was mainstream. Today, change, technology and globalization require a new way of thinking. This is a paradigm shift in which I also recognize certain elements of the Austrian school.

Newtonian thinking says that the universe is one big machine. Everything can be calculated and predicted. Everything is matter and you need force to get an object moving. This is the law of cause and effect. Quantum thinking however says the universe is one big mind. Everything is energy, mind influences matter and our thinking has direct impact on what will happen. So the entrepreneur is the creator. This idea is key in Austrian economics.

Looking at business, the Newtonian way of thinking fits the period of industrialization with machines, force and hard labor. People are just a small part in a mechanical system. People only do what they have to do and they have no insight at all in the big picture. People are isolated in teams and departments and feel no connection with other parts of the organization. This is what we still see in big hierarchical organizations today. As a result people feel disconnected, unfulfilled and not satisfied with what they are doing day in day out. Burn-out, depression, chronic diseases but also bullying at work are obvious signs of this way of thinking.

New generations want their work to be meaningful. They want to be involved. They demand a flat organizational structure and a flexible work-life balance. For example, I always work with small self-steering teams. Per project, a project group is set up with clear objectives and timelines. Work should be organized in a flexible way so it can fit people’s lifestyles. If you want to travel the world and work remotely, that must be possible. If you want to take a break and spend more time with friends or family, you should be able to do so. Yet it takes a certain maturity and mindset, as well as shared purposes and values, to manage your work when you are given so much freedom. For instance, I expect each partner and employee to be intrinsically motivated, show initiative and take ownership. Authenticity, respect, teamwork, and honest communication is a must. For many people, it requires a change in mindset and attitude, to function in this kind of new organizational structure.

Quantum Thinking, as well as Austrian Economics, can be an approachable first step to a new way of thinking for many people. For the creative and conscious entrepreneurs among us, we are living in unique and special times with lots of possibilities and opportunities.

Let’s explore and implement Quantum Thinking

If you want to apply Quantum thinking in a tangible way in your work and life, you are most welcome to join us on the QP Quest.
Check out the free training videos to get started.

CHOOSE TO GROW
FROM IMPACT ENTREPRENEUR TO IMPACT INVESTOR

 

At the age of 26, I started working at the Belgian television news. It was my dream to become an investigative journalist and travel the world. Reality at the news desk turned out to be quite different. I soon realized there were 2 options. I could stay and hope that one day management would grant me the opportunity to do what I was passionate about. Or I could quit and start doing it right now. Looking into the newsroom, I saw many people who were disappointed and disillusioned in their careers. Like me, they had a passion. They wanted to make a difference by becoming a great journalist or an anchor. Unfortunately, they hadn’t succeeded, and they lost the passion. Yet they continued to do the work because it provided financial security. The thought that there was even the slightest chance that this could happen to me, that was my worst nightmare. So the decision was quickly made. I left and started as a freelancer. A month later I was traveling the world, reporting humanitarian projects from Africa. A year later I had set up my first business: a media house producing empowering stories for broadcasting.

Since then, I have made many more life-changing choices. I chose to embrace the challenges, to continuously learn and grow. This has brought me to where I am today. This has made me who I am today. An Impact Entrepreneur and Impact Investor with a clear purpose: inspire and support other Impact Makers and co-create a new society together. I sincerely wish for everyone to experience the fulfillment of this entrepreneurial journey. But I learned one thing. I can wish it to someone but I can not make it happen for someone. Everyone has to make their own choices and make their own commitments to make it happen. That is the only sustainable way.

 

Grow beyond your comfort zone

It all starts with you and the choices you make. Once you start making conscious choices, you understand that not choosing is also a choice. You choose to do nothing and for a while things may stay the same. But if you want to make a sustainable impact, there is no other way. You will have to grow as a person in order to grow your project. The same applies the other way around. As you grow a project, you yourself will also be growing as a person. So do you consciously choose to make that impact. Do you believe in it? Do you have trust? Do you want to go all the way?

Whatever your Impact Project might be, you will need a strong motivation. The bigger the project, the stronger your drive and your belief must be. Without it you might want to give up at the slightest setback. Of course you will experience a lot of joy and satisfaction. But there are also going to be moments of frustration and disappointment. You will have to deal with your fears and insecurities. You will have to get out of your comfort zone, speak up and show what you stand for. All of this requires an inner drive, a passion, and a rock-solid confidence that you can do it.

In my latest Impact Projects, my drive is my children. I wish for them to grow up in an environment where they can thrive, now and in the future. That is my personal why. That is why in September we start QP College, a high school for the conscious entrepreneurs and leaders of tomorrow. My children will be amongst the first students to start.
Next step is to grow an international network of Micro-Societies. These are self-sufficient ecovillages where conscious Impact Makers can live, learn and work together. The school is of course, an important part in this. Furthermore, we also include biophilic housing, co-working space with media house, vitality facilities, and of course our own healthy food production and energy solutions. This is a huge undertaking that was started in 2019 by 3 people. I must say it was quite a ride and sometimes it was a challenge to keep believing. Today, all three of us have grown and reached the next level. As a result we have taken major steps forward and now all doubt is gone. The Micro-Society Network is coming. In one of my next blogs, I will talk in detail about the Micro-Society in the Netherlands.

 

Grow your project sustainably

To grow your Impact Project, you need different passions. Passion for your project, passion for your product, passion for the people involved, when relevant a passion for the place, but always a passion for profit.

It’s obvious that you need passion for your project. Then you need passion for your service and product that will generate income for your project. You need passion for all the people involved: your team, your clients, your partners and suppliers, your Impact Investors and Impact Lenders. For some projects such as a Micro-Society a passion for the place is helpful. And yes, you always need passion for profit. Even if your primary goal is to make impact and bring social and environmental change. You need to be profitable. You have to be able to pay your expenses, so you can grow sustainably. The more your project grows, the more impact you can make. I already described this path from start-up to scale-up to sustain-up in another blog article about the QP-Quest.

Too often I get questions from people with a great idea, who have passion for the idea but not for the work. They are not interested in setting up the business structure that is necessary for the manifestation. They don’t want to make a product that they can offer and sell. They don’t even want to make profit. This kind of undertaking has a name. It is called a hobby. By definition a hobby is not sustainable and will not continue to make impact long after you’re gone. Serious Impact Investors will not be interested in funding this kind of project. They want their money to make a sustainable and lasting impact.

That brings us to funds and funding. Many startup entrepreneurs think money is the problem. If only they had enough money they could start this or that Impact Project. I have to disappoint you. Money, or the lack of money, is rarely the problem. Usually the problem is a lack of creativity to come up with solutions, or a lack of courage to take action out of the comfort zone. Of course funds can help. But it is still the initiating entrepreneur who will have to commit and make it happen.

 

Grow your ripple impact

When you notice the positive impact you start making with your project, it almost becomes a moral obligation to increase your impact. There are different ways and strategies. You can set up spin-offs or new Impact Projects. You can expand or copy a project to other places. For example, we developed the concept for a Micro-Society in the Netherlands. Following the same principles, Micro-Societies can also be developed in other regions and countries. You can choose to help and support other Impact Entrepreneurs. For example, QuantumPreneur supports Impact Projects with mentoring as well as business services such as virtual assistance, sales funnels, digital products and so on. As an Impact Investor, you can of course help through investments or Win-Win-Win Impact Lending.

My business partner Christiaan Baan is a great example of the driven Impact Entrepreneur who quickly became to be an Impact Investor. When I first told him about QuantumPreneur, its underlying values and goals, he immediately felt that this resonated with him. He jumped and committed himself to make it happen. Today he is an Impact Investor and Impact Lender. He is generating a good return while supporting Impact Projects in a sustainable way: win-win-win. Win for the Impact Project, Win for the Impact Investor and Win for society and planet.

In the end our aim is to help conscious Impact Makers grow as we did, from Impact Entrepreneurs to Impact Investors. Thus creating a sustainable network of people helping each other out both with experience, expertise and funding.

Let’s join forces

Does this purpose resonate with you? If so, I invite you to connect in a live connection call. I’m looking forward to hearing your story.

For Impact Entrepreneurs who choose to grow their Impact Project.
For Impact Investors who choose to explore Impact Lending opportunities.
For Impact Communicators who choose to share experience and expertise.

More and more investors are considering ESG (environment, social and governance) in the composition of their investment portfolio. Yet this is not new. It goes back to the 1960s, when investors began to prize social responsibility. For example they refused to invest in companies with ties to South African apartheid. As deep as ESG’s roots run, the concept as we know it took hold in the mid-2000s and was codified in a 2004 report from the UN. Then and now, ESG is based on the idea that corporations have the power, and the responsibility, to effect change. But does this also make a change in the wallet of the ESG investor?

 

WHAT IS ESG INVESTING?

 

Droughts, food insecurity, and rising temperatures have a domino effect on the environment that impacts multiple sectors. As a result, investors want to address those new risks and take action to prevent them. ESG investing is their solution.

ESG means “environmental, social and governance,” representing a more stakeholder-centric business approach. ESG is set on the principle that the environment is only one factor in determining an organization’s commitment to sustainability.

Companies that adhere to environmental, social and governance standards agree to conduct themselves ethically in those three areas and can draw on various strategies, tactics and ESG solutions. As ESG increasingly becomes top of mind for directors, it’s essential to consider the global nuances that drive focus region by region.

ESG strategies are more widespread than you might think. The following are prime ESG examples:

 

Environmental examples:

•  Minimizing your carbon footprint to fight climate change
• Reducing greenhouse gas emissions
• Using renewable energy throughout your value chain

 

Social examples:

• Giving back to the communities in which you operate
• Creating an equitable and safe working environment
• Treating your customers with dignity and respect

 

Governance examples:

• Offering pay transparency and pay equity across your organization
• Assembling a diverse board of directors
• Holding employees and leaders accountable for unethical practices

According to a report by PWC, the practice of ESG investing has grown over the last few years. The report states that the ESG asset pool will continue to grow rapidly and become essential in the investment process in the coming years.

 

WHY IS ESG INVESTING IMPORTANT?

ESG investing is important in many ways. 80% of the world’s largest companies have reported exposure to climate change-related risks, while climate-related events could cost those businesses $1.6 trillion by 2026. ESG is an important way to insulate against those risks.

ESG investing is also financially important. In a recent study, MSCI investigated the ties between ESG investments and the stock market, to see if there were any financially significant effects. The study used a three-channel model to look at how ESG data embedded in stocks gets transferred to the equity market.

The study found that, after examining idiosyncratic and systematic risk profiles for the companies involved in the study, ESG affected many of those companies’ valuations and performance.

Companies with higher ESG ratings showed:

 

Higher profitability

ESG companies with high ratings showed abnormal returns and were more competitive. This often led to higher profitability and dividend payments, especially when contrasted against low ESG companies.

 

Lower tail risk

High ESG-rated companies experienced fewer idiosyncratic risk events like major drawdowns. Companies with low ESG ratings were more likely to experience these incidents.

 

Lower systematic risk

High ESG companies had less volatile earnings and less systematic volatility. They had lower betas and lower costs of capital than low ESG-rated companies.

They also displayed lower instances of bribery, fraud, and corruption over time. These results suggest that, in the long run, ESG investments are more stable and can even outperform other companies.

 

IS ESG A GOOD THING, MYTHS DISMANTLED?

Though ESG is important and a priority for many, it’s also controversial. This backlash, though, is largely tied to ESG myths that are easily misunderstood but are even easier to debunk. Here are some persistent myths dismantled.

 

ESG is a poor use of resources?

For most companies, adopting ESG principles will require an up-front investment. That investment often pays for itself, though, given that it can also cut costs by reducing employee attrition, lowering the risk of penalties for noncompliance and stabilizing the supply chain.

 

ESG isn’t a good investment?

Here are lawmakers, investors and even corporations who claim that investing based on ESG isn’t profitable. However, intangible assets like reputation account for more than 80% of an organization’s S&P asset value, and Stock prices of companies with high ESG rankings also tend to be less volatile, whereas “high ESG controversy” events can cause a company’s stocks to underperform the market for as long as two years.

 

ESG is too difficult to track?

Because ESG is multi-faceted, some feel that it can be difficult to truly track and manage. How can someone really know they’re making a sound ESG investment? While corporate ESG practices have evolved, they are currently quite strong. Many boards leverage ESG tools, and 90% of S&P companies have an ESG strategy, making ESG trackable and transparent.

People used to believe that ESG investments were a sacrifice, an investment more morally than economically motivated. Today, that isn’t necessarily true. When it comes to ESG there can be multiple wins.

 

Win for society

ESG investing may drive the search for solutions to the many challenges we face, from climate change to human rights violations to equity in the workplace.

 

Win for investors

ESG performance has been shown to correlate strongly with financial performance. Companies in the S&P 500 that ranked in the top quintile for ESG factors outperformed those in the bottom quintile by more than 25 percentage points between the start of 2014 and the end of June 2018.

 

Win for corporations

ESG is a business opportunity for open-minded corporations, as these issues shape consumer expectations. Among millennials, 83% of consumers support brands that align with their values.

 

Win for governments

Increased focus on ESG across the business and political spectrum has made this a vital issue for governments, exemplified by imperatives like the publication of the 2021 IPCC report on climate change that renewed the ESG focus.

 

CONCLUSION

ESG investment started in the 1960s. While certain ethical concerns have changed, the principle of sustainable investing remains the same. More and more investors are adopting ESG criteria, evaluating their potential investments with an emphasis on how effectively corporations navigate people and planet, not just profit.

According to a report by PWC, the practice of ESG investing has grown over the last few years. The report states that the ESG asset pool will continue to grow rapidly and become essential in the investment process in the coming years. It is clear, the next generation is changing the way investment works, thus creating more opportunities for Impact

 

 

LET’S CONNECT

Do you like to hear more about ESG Investing and Impact Lending opportunities?

You are most welcome to join us in a free Connection Call where we exchange experience and expertise with likeminded Impact Entrepreneurs and Impact Investors.

Check out the live calendar for upcoming calls.
Check out Impact Lending for your ESG Lending portfolio.

The Cyprus banking crisis had serious consequences for the people of the country. As the economy collapsed, many people saw their source of income reduced. On top of that, their savings were put at risk.

 

GOVERNMENT INTERVENES IN CYPRUS BANKING CRISIS

 

During the banking crisis in 2013, the Cyprus government took a series of measures to support the banks. Let’s have a look at the timeline of events and their impact on savers and investors.

 

1. Loss of trust and confidence

 The crisis caused a decrease in trust among depositors leading to a loss of confidence in the banking sector. This not only affected residents but also made foreign investors hesitant to keep their funds in Cypriot banks.

 

2. Bail in and haircut

 In order to receive assistance from lenders Cyprus implemented a bail in program in 2013. Deposits exceeding €100,000 in the two banks, Bank of Cyprus and Laiki Bank underwent substantial haircuts or partial losses. This directly impacted individuals and businesses including foreign investors who had significant deposits in Cypriot banks.

 

3. Economic downturn

 The banking crisis played a role in triggering an economic downturn in Cyprus. The country experienced shrinking GDP, levels of unemployment and decreased investment levels. The financial sector, which was previously a contributor to the economy witnessed reduced activity and job opportunities, within the banking industry.

 

4. Limitation on outflow

 Capital controls were implemented in Cyprus to prevent a bank run and the outflow of funds. These controls limited the amount of money that individuals and businesses could withdraw or transfer outside the country. As a result access, to funds was restricted, which hindered activities and made it more challenging for businesses to function.

 

EFFECT OF THE CYPRUS BANKING CRISIS ON PEOPLE AND ECONOMY?

 

The economic downturn caused by the crisis resulted in an increase in poverty and social difficulties. The unemployment rate saw a rise peaking at 16%. Many businesses had no choice but to close down or downsize leading to job losses and reduced incomes for individuals and families.

Furthermore the crisis harmed Cyprus reputation as a hub and eroded business confidence in the country. International investors and companies became sceptical about the stability and reliability of Cyprus economy resulting in a decline in investment opportunities. Overall the Cyprus banking crisis had reaching consequences, on both the economy and its citizens. It caused losses, economic decline, heightened unemployment rates and increased social hardships.

It took years for Cyprus to recover from this crisis and restore some level of stability within its banking sector and economy.

 

CAN THIS CYPRUS BANKING CRISIS SCENARIO HAPPEN AGAIN?

 

Unfortunately, history shows that the past repeats itself. Governments have the power to roll out this scenario again. The probability is high that this will be repeated in your region. So let us learn from the past, apply risk management, add alternative investment strategies to your portfolio and be prepared for the next banking crisis.

 

 

LET’S CONNECT

Do you like to hear more about our Impact Finance solutions?

You are most welcome to join us in a free Connection Call where we exchange experience and expertise with likemindend Impact Entrepreneurs and Impact Investors.

Check out the live calendar for upcoming calls.

During the previous banking crisis the government implemented some measures to lessen its negative effect on the economy. Can we expect similar government measures in a future banking crisis and will these be effective? Let’s have a look at the past and learn some lessons for the future.

 

WHAT ARE PAST GOVERNMENT MEASURES IN A BANKING CRISIS?

 

1. Financial institution bailouts

 The government injected capital into struggling banks to stabilize their position and prevent their collapse. This action was crucial in averting a catastrophe.

 

2. Acquisition of assets

 The government purchased assets like mortgage backed securities from banks in order to remove them from their balance sheets and restore confidence in the financial system.

 

3. Guarantees and protection

 The government provided guarantees on bank debt and deposits ensuring that people’s money was secure and the banking sector was stabilized. This measure effectively prevented bank runs and reinstated trust in the banking system.

 

4. Reduction of interest rates

 Central banks lowered interest rates to encourage borrowing and spending. By making borrowing more affordable, businesses and consumers were incentivized to invest and spend thereby boosting activity.

 

5. Enhanced regulation and oversight

 Governments introduced regulations and oversight measures on the sector to prevent future crises. They implemented initiatives such as stress tests, increased capital requirements and improved risk management practices, with the aim of reducing the likelihood of crises occurring again.

 

WILL THESE GOVERNMENT MEASURES WORK IN A FUTURE BANKING CRISIS?

 

The government injected capital into struggling banks to stabilize their position and prevent their collapse. This action was crucial in averting a catastrophe

It is important to note that these interventions achieved varying degrees of success in restoring stability.

 

1. Government measures in the US

 In nations, like the United States the efforts made to prevent a collapse of the financial system and restore stability were mostly successful. The Troubled Asset Relief Program (TARP) and the actions taken by the Federal Reserve played a role in stabilizing the banking sector and avoiding a severe recession.

 

2. Government measures in the EU

But European nations faced challenges in restoring stability. This is particularly due to their interconnected banking systems and issues with sovereign debt. The effectiveness of measures also depended on how severe the crisis was and how quickly they were implemented.

 

3. Take your own measures

In general while these government measures were crucial in preventing a catastrophe, there is ongoing debate regarding their long term success in restoring financial stability and averting future crises. The banking crisis highlighted the importance of maintaining vigilance implementing regulations and introducing reforms, within the sector to ensure global economic resilience.

Remembering the Cyprus banking crisis in 2013, it is of the utmost importance to apply risk management and spread risks in your Impact Investment strategies. Check out the Win-win-win Impact Lending formule as an alternative product for your Impact Investment Portfolio.

 

 

LET’S CONNECT

Do you like to hear more about our Impact Finance solutions?

You are most welcome to join us in a free Connection Call where we exchange experience and expertise with likemindend Impact Entrepreneurs and Impact Investors.

Check out the live calendar for upcoming calls.

Impact investment strategies are significantly affected by geopolitical events because of their potential to cause instability, uncertainty and changes in market dynamics. Here are some developments to keep an eye on as an impact investor.

 

 

1. Market volatility

 Geopolitical events can lead to increased market volatility, resulting in fluctuations in asset prices and investor sentiment. Sudden political shifts, such as elections or changes in government policies, can create uncertainty and affect market stability. Investment strategies may need to consider potential short-term market disruptions and adjust risk management measures accordingly.

 

2. Economic impact

 Geopolitical events can have broader economic impacts, such as trade disputes, sanctions or geopolitical tensions that cause disruptions in global supply chains. These factors can influence investment decisions by affecting sectors, currencies and trade flows. It becomes essential to invest in sectors less susceptible to such events or to diversify portfolios to minimize exposure to specific regions or sectors.

 

3. Opportunities within specific sectors

 Geopolitical events can create specific opportunities within certain sectors. For example, defense and security-related industries can benefit from increased government spending during periods of geopolitical tension. Similarly, renewable energy sectors may benefit from global initiatives to address environmental issues. Investment strategies can be adapted to take advantage of such trends and opportunities within specific sectors.

 

4. Currency risk

 Geopolitical events often affect currency markets and can create fluctuations that create additional risk and affect returns on foreign investments. It is important that investors consider the impact of geopolitical events on currency values and use strategies such as hedging or spreading investments across different currencies.

 

5. Emerging market considerations

 Emerging markets can be particularly vulnerable to international tensions and political instability, so investors should be alert to potential risks and opportunities in these markets. They should also evaluate the stability of local currencies and consider how geopolitical events may affect their investment decisions in emerging economies.

 

6. Long-term implications

 Geopolitical events can lead to long-term changes in policy as well as government measures which can affect investment strategies. For example, changes in regulation, tax policy or trade agreements can change the playing field for specific industries or regions. Therefore, it is essential to evaluate the potential impact of such policy changes and make adjustments in investment strategies accordingly.

 

7. Risk assessment and diversification strategy

 Geopolitical events emphasize the need for thorough risk assessment and the use of diversification strategies. By evaluating the potential impact of geopolitical events on different asset classes and regions, investors can construct their portfolios in a way that balances risk. It is important to diversify across asset classes and regions to reduce the impact of geopolitical events on the performance of your investments.

 

Conclusion

 Geopolitical events play a crucial role in shaping investment strategies because they introduce volatility, change market dynamics and create both risks and opportunities. By closely monitoring developments in geopolitics, conducting thorough analysis and applying risk management techniques, investors can effectively deal with the potential impact of geopolitical events on their investment strategies.

 

 

Let’s connect

Do you like to hear more about our Impact Finance solutions?

You are most welcome to join us in a free Connection Call where we exchange experience and expertise with likemindend Impact Entrepreneurs and Impact Investors.

Check out the live calendar for upcoming calls.