Technically nonprofit doesn’t mean you can’t make a profit. It just means you can’t distribute that profit, the way a for-profit pays dividends. You have to use any profit for operations.
I was mostly analyzing nonprofits that don’t charge for services. In the case of a nonprofit that charges, and does not rely on external donations, then the “product loop” is much more intact. In that case it’s only the investor loop, the “return loop” that is still problematic.
That’s really important, and I suspect a big source of confusion about your thesis. If you said “if you can find a price signal, incorporate it into your strategy”, even for non-profits, I suspect you’d get a lot less disagreement.
Technically nonprofit doesn’t mean you can’t make a profit. It just means you can’t distribute that profit, the way a for-profit pays dividends. You have to use any profit for operations.
I was mostly analyzing nonprofits that don’t charge for services. In the case of a nonprofit that charges, and does not rely on external donations, then the “product loop” is much more intact. In that case it’s only the investor loop, the “return loop” that is still problematic.
That’s really important, and I suspect a big source of confusion about your thesis. If you said “if you can find a price signal, incorporate it into your strategy”, even for non-profits, I suspect you’d get a lot less disagreement.
Thanks, that’s a clarifying distinction.