In the world of entrepreneurship, every journey is a unique tapestry woven with experiences, challenges, and triumphs. Recently I spoke with with Jeremy Beer, the co-founder of AmPhil (American Philanthropic), to explore the entrepreneurial path he traversed over the last 15 years. From the inception of AmPhil in 2009 to its current status as a thriving professional services firm in the nonprofit sector, Mr. Beer shares the insights gained from his unconventional journey and speaks to the wisdom of prioritizing profitability early, building genuine value, and having an unwavering commitment to a meaningful mission.
The Interview
Griffin Connolly: So, Mr. Beer, let’s start at the beginning. Could you share a bit about yourself and the origin of AmPhil?
Jeremy Beer: Certainly, Griffin. The roots of AmPhil trace back to 2009. Initially, I pursued a doctorate in psychology with dreams of becoming a professor. However, the challenging job market led me to explore other paths. I ended up working for a nonprofit organization where I met my co-founder, Jeff Cain. Witnessing overpriced consultants in the fundraising space sparked the idea for AmPhil.
We envisioned a consulting firm that could provide better services at a more reasonable cost. With little more than a vision and determination, we co-founded AmPhil with the goal of helping nonprofits secure the funding they needed. We had contracts to do some work for our former employer, enough to live on for a while. That’s how it all started. Today, we’re a professional services firm in the nonprofit space, serving mainly public charities, givers, and foundations, with about 100 employees and offices in 5 locations around the country.
Griffin Connolly: It’s fascinating how AmPhil’ s journey began. What were some early struggles you faced as entrepreneurs, and how did you overcome them?
Jeremy Beer: The most significant initial struggle was our lack of knowledge. My background was in psychology, and my co-founder had a Ph.D. in English literature – not exactly conventional business training. We had to learn everything – from defining our services, marketing, pricing, and selling, to structuring our back office. We essentially stumbled through the process, putting ourselves through a makeshift “graduate school” to understand the market’s needs. Fortunately, we had contracts with our former employer, providing enough financial support to sustain us initially. We were blessed to find clients right away and grow organically.
Building cash reserves for further investments, primarily hiring people, was a challenge. Every stage brought different struggles, from managing people to implementing systems for visibility into the business. Initially, when the team is small, you can see everything, but as you grow, maintaining that visibility becomes more complex. Adapting and changing systems to ensure informed decision-making has been an ongoing struggle.
Griffin Connolly: Starting a business is indeed a steep learning curve. Looking back, are there things you would have done differently or strategies you would have employed to better prepare for entrepreneurship?
Jeremy Beer: It’s a great question, Griffin. While mistakes are inevitable, one consideration might have been exploring borrowing money earlier to expedite growth. However, looking back, not having debt and using equity to retain top talent turned out to be a blessing. We never relinquished ownership percentages to external investors, and while that may have hindered rapid growth, it allowed us to maintain control and use equity to incentivize and retain valuable team members.
Griffin Connolly: It’s clear that adaptability is key in entrepreneurship. Let’s dive into the motivation behind AmPhil. What drove you to start your own business, and what do you find most fulfilling about the work you do?
Jeremy Beer: The initial motivation was pragmatic – to pay mortgages and make a living. However, AmPhil’ s mission, then and now, centers on serving nonprofit organizations. We believe these organizations are crucial to civil society, tackling issues that may not be financially lucrative but are vital for the community’s well-being. Helping nonprofits grow and fulfill their missions remains incredibly gratifying. Additionally, assembling a team of like-minded, virtuous individuals and working together to make a positive impact is immensely fulfilling.
Griffin Connolly: Reflecting on your journey, are there specific projects or clients that stand out as particularly gratifying or interesting?
Jeremy Beer: Certainly. We’ve probably worked with more than 800 clients over the years but two long-term clients, St. Vincent de Paul and Great Hearts, have been particularly satisfying. Witnessing Great Hearts’ substantial growth and contributing to the establishment of new schools nationwide has been exciting. Similarly, being part of St. Vincent de Paul’s efforts to build shelters, feed the hungry, and prevent evictions has been truly gratifying. These projects align with our mission of strengthening nonprofits to strengthen the fabric of society.
Griffin Connolly: Some of those long-term clients have obviously been very impactful on your journey. What strategies have you found most effective in advertising and gaining clients over the years?
Jeremy Beer: For the first seven or eight years, word of mouth was by far the most effective strategy. Referrals from current and past clients, along with community connections, played a pivotal role. Networking, done genuinely and without a sales pitch, proved to be highly effective. More recently, while we’ve invested in marketing, our approach aligns with thought leadership. By sharing valuable information and establishing ourselves as experts in the field, we’ve found success in attracting clients.
Griffin Connolly: The landscape of business and entrepreneurship evolves continuously. What trends do you observe in the nonprofit sector that have changed since AmPhil’ s inception?
Jeremy Beer: Digital fundraising has become significantly more crucial for our clients. Email, social media, and other online tools are now integral to fundraising efforts. Additionally, emerging technologies like AI are poised to reshape the landscape further, impacting how we operate and how our clients can leverage these advancements. However, a less positive trend is the decline in the percentage of Americans giving, with a higher reliance on very wealthy individuals for funding. That also reflects what’s happened to wealth distribution in American society over the last 15 years.
Griffin Connolly: I run a Student Launch club at school, which is basically like a peer-to-peer business incubator for young people who are interested in entrepreneurship. As we conclude, Jeremy, what advice would you offer to aspiring entrepreneurs, especially those embarking on their journeys?
Jeremy Beer: The advice I recently received from a successful entrepreneur resonates – establish a profitable model early on. While there may be trends encouraging businesses to prioritize growth over profit initially, a sustainable model that generates net revenue is essential. It’s tempting to follow the flashy startup narratives, but building a solid foundation with a clear profit model is crucial for long-term success.
Griffin Connolly: That’s great. Thank you for your time today. I’m very appreciative.
Jeremy Beer: Thank you, Griffin. Take care.