Similarities between non-profit and for-profit businesses

Having worked for both non-profit organizations and for-profit companies, I believe they are similar in three ways. They both serve the needs of a niche in the marketplace, work to make a difference in that niche, and get paid for what they do. Sound a little odd? Let me explain each in more detail below.

A non-profit organization is similar to a for-profit in the context that they both are created to fulfill the need of a specific niche in the marketplace for a community of people. When anyone starts a business, the first step is to make sure that there is a need for that company to be created. If there is no need there will be no clients, and therefore the company will fail. A nonprofit is very similar. If you are looking to start a non-profit organization then there must be some kind of a need for the direct service that you are going to offer.

Every organization on the planet has at least one thing in common. It doesn't matter if it's a Fortune 500 company, non-profit organization, small business, or church they all exist to make a difference. Every company and organization stands to make a positive difference in some area of the world. People who work don't want to just bring home a paycheck; they want to feel like their work is meaningful and significant.

What many people don't realize is that employees of non-profit organizations are often paid more for what they do than employees of for-profit companies. You might be asking, "What?" Both non-profits and for-profits get paid a lot for what they do, however they are paid in different forms. For profit companies are paid in greenbacks (dollars and cents), while non-profit organizations are paid in gratification (love and enjoyment). The reason that for profit executives work so hard and sacrifice so much is that they want to bring in the big bucks. Employees of non-profits work so hard not because of the amount of money they are paid, but for the love and enjoyment they receive for knowing that they have made a positive difference in the world. Both are paid very much for what they do, they're just paid in different ways.

The overall summary of how a non-profit organization is similar to a for-profit company is that they both are directed toward making change in an area of the world that it's needed, while wanting to make a difference, and they both get paid a lot for what they do.

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