business planning for social entrepreneurs

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Social Enterprise Business Plan

A social enterprise is an activity of a nonprofit that employs entrepreneurial, market-driven strategies for earned income in support of its mission. This outline for a social enterprise business plan is a guide for research, planning, and writing a business plan for nonprofit social enterprises.

A social enterprise is an activity of a nonprofit that employs entrepreneurial, market-driven strategies for earned income in support of their mission. Business plans are a common tool for entrepreneurs when starting or growing a business enterprise. For nonprofits that are starting or growing a social enterprise as a part of their program activities, developing a business plan is an essential step. While social enterprise business plans address all of the questions needed for any business, nonprofits also need to consider the alignment with mission, organizational background and structure, and evaluation of both financial and social impact.

This outline for a business plan is a guide for research, planning, and writing a business plan for nonprofit social enterprises. The sections below are provided as a roadmap for the plan. Most business plans include each of these sections, though the length and amount of detail will vary depending on the nature of the enterprise, the complexity of the organization, and the purpose and audience for the plan.

Executive Summary

The Executive Summary provides the most important information for readers that need to understand and support the concept but not necessarily know the detailed plans. This is usually written last.

• Organizational description
• Business concept
• Market description
• Value proposition, or competitive advantage
• Key success factors
• Financial highlights and capital requirements

A social enterprise of a nonprofit organization may contribute directly to achieving mission; may be complementary or supportive of mission; or may be unrelated to mission (with primarily financial goals). The alignment to mission is a critical question.

• Organization mission and/or vision statement
• Relationship of social enterprise to organizational mission, or separate mission for the enterprise

Background and Structure

This section summarizes the organization’s history and programs and how the enterprise will fit in to the larger organization.

Most social enterprises operate as an activity or program within the nonprofit, though some are legally structured as a separate nonprofit, a for-profit subsidiary, or an independent organization.

Form should follow function and the legal structure should support the purpose and activities of the enterprise. Advice from an expert attorney may be needed.

• Brief description of the nonprofit, including context and programs
• How the business venture will be structured in the organization
• Legal structure and governance (Boards, advisory committees, reporting)

Market Analysis

The market analysis is the heart of the business plan and is too often inadequately explored when planning a social enterprise. Solid research is necessary to understand the target customers and how the enterprise will meet a gap and demand in the market. No amount of mission or commitment will overcome a deficiency in market knowledge and a bona fide demand for the product or service.

• Summary of current market situation
• Target market and customers
• Customer characteristics, unmet demands and buying factors

Competitive Analysis

This section describes the competitors, both nonprofit and for-profit, and the value proposition, or market advantage, of the proposed business.

• Primary competitors
• Competitive products/services
• Risks and opportunities in competitive market
• Recent or emerging changes in the industry
• Specific description of competitive advantage/value of proposed product or service

Products/Services

This section is a summary of the product or service that will meet the demand in the market. It does not need to include detailed descriptions, price lists or other materials.

• Product/service description
• Positioning of products/services
• Future products/services

Marketing and Sales

This section will describe how the organization will reach the target market and turn those prospects into paying customer.

• Marketing strategy
• Sales tactics
• Advertising, public relation, and promotions
• Summary of sales forecasts

This is the “how to” section, describing the creation and delivery of the business’ product or service.

• Management structure
• Staffing plan and key personnel – if this includes programmatic elements related to the mission, expand this section
• Production plan or service delivery, including summary of costs of materials and production
• Customer service/support strategy and plan
• Facilities required, including specialized equipment or improvements. If the business is retail, discuss location characteristics

Evaluation and Assessment

Most for-profit businesses measure their success by the financial results. Social enterprises have a double bottom line (or a triple bottom line.) This section describes the factors that will be evaluated to assess the success of each aspect of the enterprise.

• Quantifiable financial goals
• Quantifiable mission goals
• Monitoring and evaluation strategy

Financial Plan and Projections

The financial section includes projections for revenue and expenses for at least three years with a summary narrative of the key assumptions. This section also details the start up costs for capital equipment, inventory, initial marketing and staffing, and subsidy needed to cover losses during the start up period. These capital requirements may be funded from a combination of contribution from the nonprofit, grants for the enterprise, and/or debt financing.

• Start up costs and investments in equipment, technology, or one time costs
• Capital requirements and sources
• Income and expense projection
• Pro forma balance sheet for start up
• Cash flow summary or projection
• Assumptions and comments
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About Propel

Propel Nonprofits is an intermediary organization and federally certified community development financial institution (CDFI). We provide capacity-building services and access to capital to support nonprofits in achieving their missions including the ability to link strategy, governance, and finance and to support nonprofits throughout their organizational lifecycle.

Social Enterprise Business Plan Template

Written by Dave Lavinsky

Social Enterprise Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their social enterprise businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a social enterprise business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Social Enterprise Business Plan?

A business plan provides a snapshot of your social enterprise business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Social Enteprise

If you’re looking to start a social enterprise business, or grow your existing social enterprise business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your social enterprise business in order to improve your chances of success. Your social enterprise business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Social Enterprise Businesses

With regards to funding, the main sources of funding for a social enterprise business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for social enterprise businesses.

Finish Your Business Plan Today!

How to write a business plan for a social enterprise.

If you want to start a social enterprise business or expand your current one, you need a business plan. Below are links to each section of your social enterprise business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of social enterprise business you are operating and the status. For example, are you a startup, do you have a social enterprise business that you would like to grow, or are you operating social enterprise businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the social enterprise industry. Discuss the type of social enterprise business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of social enterprise business you are operating.

For example, you might operate one of the following types of social enterprise businesses:

• Trading social enterprise : this type of social enterprise refers to cooperatives, collectives, and other organizations that are worker or employee-owned. This type of ownership structure allows a higher degree of economic resiliency compared to a traditional organization.
• Financial social enterprise: this type of social enterprise includes credit unions, cooperative banks, and revolving loan funds, which are all membership-owned. In other words, the money deposited from a member is used to help other members who may need financial assistance.
• Non-governmental organizations (NGOs) and charity social enterprise: this type of social enterprise businesses are usually created to support a specific social, environmental, or political goal. The profits are used to further the social or environmental aims of the organization or to provide salaries for people who provide free services to specific groups of people.

In addition to explaining the type of social enterprise business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, number of positive reviews, reaching X amount of clients served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the social enterprise industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the social enterprise industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your social enterprise business plan:

• How big is the social enterprise industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your social enterprise business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your social enterprise business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments:non-profits, individuals, social causes, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of social enterprise business you operate. Clearly, social causes would respond to different marketing promotions than individuals needing financial assistance, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other social enterprise companies. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes social enterprise companies such as brand awareness companies, community organizations, government programs, etc.

With regards to direct competition, you want to describe the other social enterprises with which you compete. Most likely, your direct competitors will be social enterprise businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What clients or causes do they serve?
• What type of social enterprise company are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide social enterprise services that your competitors don’t offer?
• Will your social enterprise business help more people in need?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a social enterprise business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of social enterprise company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to social enterprise services, will you provide access to funding, marketing, counseling, and/or brand awareness, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your social enterprise company. Document your location and mention how the location will impact your success. For example, is your social enterprise business located near an office complex, a university, an urban setting, or a busy neighborhood, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your social enterprise marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Website and SEO marketing
• Community events
• Commercials
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your social enterprise business, including communicating with clients, marketing, accounting, accounts payable, fundraising, and searching for grant opportunities.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your social enterprise business to a new location.  

Management Team

To demonstrate your social enterprise business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing social enterprises. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a social enterprise business or are connected to a wide network of professional organizations that frequently tend to donate to various causes.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new service at a time or multiple services ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your social enterprise business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a social enterprise business:

• Cost of social enterprise services
• Cost of overhead, marketing, and outreach
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your social enterprise outline of services, types of customer and/or cause you will be targeting, and the areas your social enterprise business will serve.   Summary Putting together a business plan for your social enterprise business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the social enterprise industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful social enterprise business.  

Social Enterprise Business Plan FAQs

What is the easiest way to complete my social enterprise business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Social Enterprise Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of social enterprise business you are operating and the status; for example, are you a startup, do you have a social enterprise business that you would like to grow, or are you operating a chain of social enterprise businesses?

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to hire someone to write a business plan for you from Growthink’s team.   Other Helpful Business Plan Articles & Templates

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Creating a Winning Business Plan for Social Entrepreneurs

Published May.23, 2023

Updated Apr.22, 2024

By: Jakub Babkins

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Table of Content

1. What is a Social Entrepreneur Business Plan?

A social entre­preneur business plan is a de­tailed strategy and roadmap. The Nonprofit Start-Up Busine­ss Plan outlines the social ente­rprise’s revenue­ generation, financial manageme­nt, and progress measureme­nt. By creating a comprehensive­ business plan, social entrepre­neurs can ensure that their social enterprise is we­ll-prepared to meet its objectives.

2. Why do we need a social entrepreneur business plan?

A successful social e­ntrepreneur ne­eds an essential tool: a we­ll-crafted business plan. This plan serves multiple purposes. First, it helps in identifying the specific problem that needs to be addressed. Second, it sets clear goals and de­fines the target audience. Third, it devises strategies for achieving these­ objectives. Additionally, this plan plays a crucial role in identifying potential funding sources and resources. It also maps out a timeline for goal attainment.

A Homele­ss Shelter Business Plan aids organizations in de­veloping successful and scalable business models that can effectively achieve their de­sired impact.

3. Sources of funding for social enterprise businesses

Grants are one­ of the sources for funding social ente­rprise businesses. Social e­ntrepreneurs ofte­n receive grants from non-profit and government organizations. These grants serve as startup capital and provide ongoing operational support.

Links to funds for non-profit organizations: Newprofit: https://www.newprofit.org/ Ashoka: https://www.ashoka.org/en-us MassChallenge: https://masschallenge.org/

In addition to traditional funding sources like­ crowdfunding, angel investors, and venture­ capital firms, social enterprises can also e­xplore loan programs provided by the Small Busine­ss Administration. Two such programs are the 504 and 7(a) loan programs which offer financing options for social e­nterprises.

Furthermore, an increasingly popular ave­nue for funding social enterprise­ businesses is through social impact investing.

4. How to write a social enterprise business plan

• Start by Defining Your Social Mission: Before diving into writing your business plan, it is e­ssential to have a clear understanding of your organization’s purpose, values, and desire­d social outcomes.
• Describe Your Target Market: The target market description is a crucial aspect of your Strate­gic/Operational plan . It is essential to clearly identify your target customers, their needs and desire­s, and outline how you intend to address those­ requirements effectively.
• Outline Your Business Model: Then comes outlining your business model. This step involves de­termining how you’ll generate­ income, what products or services you’ll offer, and how you’ll deliver them to your customers.
• Develop Your Marketing and Sales Strategy: After your business model is outlined, you should then develop your marketing and sales strategy. This social enterprise business plan should include how you plan to market and promote your products or services, what pricing model you plan to use, and how you plan to generate sales.
• Describe Your Team and Resources: This includes showcasing the skills and experience of team members, outlining strategies for attracting and re­taining top talent, as well as identifying any necessary resources required for the success of the­ business.
• Outline Your Financial Plan: These include­ identifying the start-up funds require­d, determining the me­ans of financing operations, and planning for future investme­nts that may be made.

5. Executive summary

Our social ente­rprise, JYC, has a mission to empower vulne­rable communities in deve­loping countries. The JYC organization collaborate­s with various stakeholders like NGOs, governments, and corporations to establish a comprehe­nsive platform. This platform aims to empower individuals in de­veloping and sustaining their own businesses. Through our tailored training programs, financial resources, and me­ntorship opportunities, entrepre­neurs receive­ the necessary support to build and maintain successful ventures.

6. Company (Institutional) analysis

The social e­ntrepreneurship busine­ss plan aims to establish a sustainable, equitable­, and responsible economy. It does so by offering resources and training to e­ntrepreneurs, enabling them to create busine­sses that generate­ meaningful social and environmental advantage­s.

We strongly believe­ in equal access to resources and networks for building successful businesses, ensuring that everyone­ benefits from their success.

7. Structure and Background

JYC, a social entre­preneurship company founded in 2020, is de­dicated to tackling social and environmental challe­nges through the impleme­ntation of innovative and sustainable business mode­ls. Its main focus revolves around enabling unde­rserved and marginalized communities to access quality education, employment opportunities, and healthcare services.

Our team comprises skilled professionals from diverse­ sectors, including finance, technology, and social work. Their collective experience empowers us to create sustainable solutions that drive positive­ social change while fostering financial stability.

8. Market (Industry) analysis

The social entrepreneurship market is growing rapidly in the United States of America; estimated that 22% have over $2 million in revenue, 89% were created since 2006, and 90% focus on solving problems at home (2012).

Social Enterprise: Statistics from Around the World

JYC’s social entrepreneurship business plan will focus on providing innovative solutions to social issues and problems that have not been solved traditionally.

9. Competitor analysis

Our social entrepreneur business plan template competitors are:

• Social Impact Exchange – a global platform that helps social entrepreneurs connect with investors to fund their projects
• UnLtd – a social enterprise accelerator that provides support for early-stage social entrepreneurs
• GlobalGiving – a crowdfunding platform that helps social entrepreneurs and non-profits raise funds for their projects
• Ashoka – a global network of social entrepreneurs providing mentorship and resources to empower the social enterprise sector
• Social Enterprise UK – a membership organization that supports and promotes social enterprises in the UK.

10. Services and Products

Our components of a business plan social enterprise include services and products which are:

• Consulting services for small businesses and start-ups
• Advisory services for nonprofits
• Educational programs for children in underserved communities
• Professional development programs for adults
• Impact investing services
• Training and development programs for entrepreneurs
• Community outreach programs
• Corporate social responsibility programs
• Social enterprise incubator services

11. Sales and Marketing Plan

In order to ensure the success of a social e­ntrepreneurship company, an effective sales and marketing plan should incorporate the following key elements:

The business aims to develop a mission and vision statement that effectively outline­s its goals and objectives. This stateme­nt serves as a guiding framework for the­ organization’s future

In order to set the company apart from competitors and establish a unique­ selling proposition, an innovative social ente­rprise app is being created.

In order to effectively promote a product or service, it is important to develop a compre­hensive marketing strategy.

12. Operational plan

Our hybrid social enterprise operational plan’s format focuses on serving our community, creating jobs, and reducing our carbon footprint.

• Supporting local businesses
• Incorporating green practices into our operations
• Developing social programs to benefit the community
• Establishing a system of sustainable production
• Creating partnerships with nonprofits and public institutions
• Minimizing waste and energy consumption.

13. Evaluation/assessment

• Analyzing the mission statement and goals of the social entrepreneurship company.
• Examining the business model and resources required to achieve success.
• Assessing the impact of the company on the community.
• Examining the company’s financial health and sustainability.
• Evaluating the management team and their ability to execute the plan.
• Analyzing the marketing strategy and its effectiveness.
• Evaluating the potential for growth and scalability.
• Assessing the competitive landscape and how the company can differentiate itself.

14. Management team

Executive Team:

• Chief Operating Officer
• Chief Financial Officer
• Chief Technology Officer
• Head of Human Resources

Advisory Board:

• Business Development Advisor
• Legal Advisor
• Marketing Advisor
• Technology Advisor

15. Projection and Financial Planning

The social e­nterprise group aims to raise $1 million in capital over the next five years. This funding will support various aspects, including platform development, staff recruitment, and covering ope­rational expenses. The­ organization plans to generate re­venue through government contracts and by offering data analytics services to local governments.

Startup Costs

The initial startup costs for this business will be $200,000.

The primary source of revenue will come from government contracts and data analytics services. Government contracts will provide a steady stream of income, while data analytics services will provide additional revenue.

Financial Highlights

The projected financial highlights for the business are as follows:

• Revenue: $1.5 million by 2024
• Profits: $400,000 by 2024
• Return on Investment: 40%
• Cash Flow: $1.2 million by 2024
• Break-even Point: 12 months

16. Discover the Power of Social Entrepreneurship with OGS Capital

Highly efficient service.

Highly Efficient Service! I am incredibly happy with the outcome; Alex and his team are highly efficient professionals with a diverse bank of knowledge.

OGS Capital specialize­s in assisting entreprene­urs in developing and implementing impactful social entreprene­urship business plans. Our highly experie­nced team collaborates with nume­rous social entreprene­urs to create custom plans that yield me­asurable outcomes.

Whether you are an aspiring entrepre­neur trying to make your mark or a seasone­d professional in the business world, our Busine­ss Planning Services are here to assist you. We specialize­ in developing comprehe­nsive plans that fully embrace your unique­ vision and core values. Through close collaboration, we­ will work diligently alongside you to identify the­ optimal strategies for success and de­termine the necessary resources to bring your goals to fruition.

OGS Capital values the­ transformative power of social entre­preneurship. With our guidance, you can establish a social ente­rprise that leaves a lasting, me­aningful impression.

OGS Capital can be your re­liable partner in creating a robust social e­ntrepreneurship business plan. Feel free­ to reach out to us today for assistance.

Q. What are examples of social entrepreneurship businesses?

1. Revolution Foods: Revolution Foods is a social enterprise providing healthy meals to underserved students. https://www.revolutionfoods.com/

2. Kiva: Kiva is a nonprofit providing micro-loans to developing countries’ entrepreneurs. https://www.kiva.org/

3. Ecosia: Ecosia is an online search engine that donates 80% of its profits to reforestation projects worldwide. https://www.ecosia.org/

4. Warby Parker: Warby Parker is an eyewear company that donates a pair of glasses to someone in need for every pair purchased. https://www.warbyparker.com/

5. Solar Sister: Solar Sister is a social enterprise that helps women in Africa build businesses selling solar-powered products. https://solarsister.org/

Q. How do you write a social enterprise business plan?

When establishing a social enterprise, it is crucial to unde­rtake the task of crafting a comprehe­nsive business plan. This plan serve­s as a roadmap, outlining key aspects such as the e­nterprise’s objective­s and mission, the range of service­s or products on offer, an analysis of the intended audience and market, financial conside­rations, a succinct overview of the marke­ting strategy, and a timeline e­ncompassing both launch and growth milestones. A meticulously de­veloped social ente­rprise business plan sets the­ stage for success in this impactful venture­.

The plan should have­ a comprehensive e­xplanation of the enterprise­’s mission and values. It should also address the compe­titive landscape and any applicable re­gulations. When writing the plan, it is important to be thorough, re­alistic, and ensure clarity for easy understanding.

Download Social entrepreneur business plan Template in PDF

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Writing your first business plan

Wh y do you need a business plan .

A business plan will help you to clarify your idea, identify challenges and allow you to monitor the progress you’re making. Your business plan is not a static document, it is something you should revisit and update as your organisation grows.

” A goal without a plan is just a wish” Antoine de Saint-Exupéry

Putting pen to paper

Writing a business plan may seem daunting, but you’ll probably find that writing down your idea will bring clarity and focus to what you are looking to achieve as a social entrepreneur.

Your business plan should demonstrate that your idea is well thought through and sustainable in the long-term. As a start-up you will find that funders, investors and stakeholders will request to see your business plan. Once you have your plan on paper it will be quick for you to pull together the information requested by funders or investors.

“The best business plans are straightforward documents that spell out the who, what, where, why, and how much.” Paula Nelson

What to include in your business plan

When you are writing your first business plan you should aim to answer the following questions:

• What is your idea?

What are you offering to your beneficiaries and customers? This is sometimes referred to as ‘value proposition.’

• Who are your customers?

Who is going to buy your product or service?

• Who are your beneficiaries?

Who will benefit from what you’re doing? For a social organisation your beneficiaries and customers may be different groups, so it’s important to think about what you are offering to each of them.

• How will you promote your organisation?

How will you market yourself to customers and beneficiaries? Now you know who they are, how do you plan to reach them?

• Who else is doing something similar?

Who are your competitors? How does your organisation differ? Take time to think about what they do well and learn from them, it’s unlikely your idea has never been done before so use others experience as a tool for learning.

• Steps to achieve your goals.

What do you need to do to achieve your objectives? Breaking down things into step by step actions will make your idea seem more achievable, it will also prevent you from getting distracted.

• What resources do you need?

What resources you will need to make this happen – people, premises, materials? Try to be realistic. When you are first starting out you might be able to beg, steal and borrow but if you want to become sustainable you need to be realistic about the resources you need.

• How much money will you have coming in?

What are people willing to pay for your services? Be realistic with how many sales you are likely to make and try to base this on evidence where possible.

• How much money will you have going out?

Once you know what resources you require, you need to work out how much will they cost you. The cost of people, equipment and premises all need to be accounted for.

• How much money will you have left over?

Will you break-even or have a profit? If you have a profit what you will do with it? You might not make a profit in your first year but you need to have an idea of when and how you will become financially sustainable.

How to structure your business plan

Once you’ve written your first business plan ask for feedback, then listen to the feedback you’ve receive. Be open to constructive comments and willing to add detail where it is needed.

Don’t forget to review your business plan regularly (don’t lock it away in a drawer!) Use your business plan to monitor your progress and keep you working towards your goals:

Further learning

• Learn to Build a Better Business Plan
• The Social Business Model Canvas

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Social Enterprise Business Plan

The ability to affect positive change and tackle social or environmental issues is one of the most satisfying parts of owning a social enterprise.

A strong sense of purpose and the desire to change the world motivates social entrepreneurs to start this business. If you are ready to change the world, then start it with proper planning.

Need help writing a business plan for your social enterprise business? You’re at the right place. Our social enterprise business plan template will help you get started.

Free Business Plan Template

Download our free social enterprise business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Social Enterprise Business Plan?

Writing a social enterprise business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your business. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Describe what kind of social enterprise business you run and the name of it. You may specialize in one of the following social enterprise businesses:

• Fairtrade organizations
• Community development enterprises
• Socially responsible manufacturing
• Trading social enterprise
• Education and skills development enterprises
• Describe the legal structure of your social enterprise, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your social enterprise’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your social enterprise business from them. Point out how you have a competitive edge in the market.
• Regulatory Environment: List regulations and licensing requirements that may affect your social enterprise business, such as legal structure, registration & certification, taxation, employment & labor laws, etc.

Here are a few tips for writing the market analysis section of your social enterprise business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Eco-friendly household products
• Sustainable fashion items
• Job training
• Healthcare services
• Renewable energy products
• Explain the benefits: Explain in detail how your products and services have a positive impact on society or the environment. Be sure to highlight how they help in environmental protection, community empowerment, and sustainable development. To corroborate your claims, use specific examples or figures.
• Showcase the innovative side: Emphasize any unique features, technology integration, or distinctive value proposition your products or services may offer. Describe how they set your products apart from the competition and help you reach your goal of having a positive social impact.
• Additional Services: Mention if your social enterprise business offers any additional services. You may include services like education & training, consulting & advisory services, product service & customization, etc.

In short, this section of your social enterprise plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Pricing Strategy: Describe your pricing strategy—how you plan to price your products or services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, influencer marketing, brochures, email marketing, content marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include targeted marketing & segmentation, partnering with other local businesses, offering referral programs, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on bulk purchases, personalized service, etc.

Overall, this section of your social enterprise business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your social enterprise business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your business’s staffing requirements, including the number of employees or volunteers needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your social enterprise business. Your operational processes may include legal structure & compliance, resource management, operations & production, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your social enterprise business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your social enterprise business, and describe their roles and responsibilities in successfully running the business.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.

This section should describe the key personnel for your social enterprise services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your social enterprise business’s assets, liabilities, and equity.

This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your social enterprise business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample social enterprise business plan will provide an idea for writing a successful social enterprise plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our social enterprise business plan pdf .

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Frequently asked questions, why do you need a social enterprise business plan.

A business plan is an essential tool for anyone looking to start or run a successful social enterprise business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your social enterprise business.

How to get funding for your social enterprise business?

There are several ways to get funding for your social enterprise business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your social enterprise business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your social enterprise business plan and outline your vision as you have in your mind. .

What is the easiest way to write your social enterprise business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any social enterprise business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Course info.

• Dr. Anjali Sastry

Departments

• Supplemental Resources

As Taught In

• Entrepreneurship

Business and Impact Planning for Social Enterprises (0.SolveX)

Course description.

People in every corner of the world are innovating to solve social and environmental problems in their communities. In the past decade, new programs like MIT Solve have emerged to support those social entrepreneurs and drive partnerships to accelerate their impact. However, many startups find it difficult to develop …

People in every corner of the world are innovating to solve social and environmental problems in their communities. In the past decade, new programs like MIT Solve have emerged to support those social entrepreneurs and drive partnerships to accelerate their impact. However, many startups find it difficult to develop business plans that clearly communicate their work and impact.

The main focus of this course is to help early-stage social impact startups define key aspects of their business by examining case studies from leading social entrepreneurs and both nonprofit and for-profit enterprises around the world.

The course was created by MIT Solve for MITx, and is now archived on the Open Learning Library (OLL) , which is free to use. You have the option to sign up and enroll in each module if you want to track your progress, or you can view and use all the materials without enrolling.

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Social Enterprise Business Plan Template

Written by Dave Lavinsky

Social Enterprise Business Plan

You’ve come to the right place to create your Social Enterprise business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Social Enterprise businesses.

Below is a template to help you create each section of your Social Enterprise business plan.

Executive Summary

Business overview.

EmpowerU is a startup social enterprise located in Ogden, Utah. The business was founded by Matt and Lauren Goodwin, a couple who have personally placed over three hundred job seekers into viable positions of employment over the past ten years by working in a nationally-known employment agency group. Both Matt and Lauren secured thousands of dollars for their employer, who received a payment for every person successfully placed into employment. With outstanding reviews by employers and a large following of those who have been placed by Matt and Lauren, they’ve determined that they can give back to the city of Ogden by opening their social enterprise, EmpowerU.

EmpowerU will provide a full-service employment placement agenda, from the time they first receive a new applicant to the 6-month period after employment when the employer-employee review is completed. Each step of the interview preparation, interviewing process, and employment negotiation is focused on bringing a new employee into a personally upward bound position that will change their life for the better.

Product Offering

The following are the services that EmpowerU will provide for the potential employers:

• Extensive recruitment of job candidates to fulfill employer requests
• Pre-employment training
• Employment assistance in pay package negotiation
• Reasonable on-hire rates with sliding scale of percentages
• Monthly and yearly reviews and assessments of employee to service employer

The following are the services that EmpowerU will provide for the potential employees:

• Personal training leading to interviews and employment
• Testing to determine skills, abilities, temperament-style
• Resume construction
• Personal deportment training
• Interview techniques for a “win”
• Negotiation techniques for employment
• Personal management in an organization
• Time management skills
• After-hire review and further training, if required
• One-year assessment

Customer Focus

EmpowerU will target both potential employers and candidates as potential employees. To do so, they will target medium-to-large businesses within the Ogden area and residents within the Ogden area. EmpowerU will target human resource managers within the Ogden area. EmpowerU will also target community associations and governmental agencies with job training programs.

Management Team

EmpowerU will be co-owned and operated by Matt and Lauren Goodwin. They have recruited their former administrative assistants, Austin Maven, and Jeanie Parker, to help manage the office and operations of EmpowerU.

Matt Goodwin is a graduate of the University of Utah with a Bachelor’s degree in Business Management. Lauren Goodwin is a graduate of Utah State College, where she earned an Associate’s degree in Social Sciences. Matt and Lauren have been working at an Ogden-based employment recruiter agency for the past ten years. During that time, they observed and practiced the functions of candidate placement into employment positions. They successfully placed over three hundred job-seekers into employment. They now want to help job candidates who need a “hand up” in securing employment by using all their acquired skills to make a change for the good of the city and state.

Austin Maven will become the Office Manager and will oversee all day-to-day office functions. He will manage the accounting and payroll for the social enterprise, as well as the detailed requirements needed to satisfy the social enterprise financials.

Jeanie Parker will become the Operations Manager, assisting in the movement of people resources in and out of the business and overseeing the training and assistance programs.

Success Factors

EmpowerU will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of EmpowerU
• Comprehensive menu of services that benefit both the employers and the job candidates.
• Full support and training for potential employees
• Reviews and assessments of employee during monthly and yearly visits
• As a social enterprise, EmpowerU charges extremely reasonable rates for employee placement, making them the lowest-priced employment service in Ogden.

Financial Highlights

EmpowerU is seeking $200,000 in debt financing to launch its social enterprise business. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for EmpowerU.

Company Overview

Who is empoweru.

EmpowerU is a newly established, full-service job training and placement agency in Ogden, Utah. EmpowerU will be the most reliable, cost-effective, and effective choice for employers in Ogden and the surrounding communities who seek employees who are eager to establish a better personal life for themselves. EmpowerU will provide a comprehensive menu of job training, placement and review services for any job candidate and business to utilize. Their full-service approach includes a comprehensive array of services that benefit both the job candidate and hiring company.

  EmpowerU will be able to provide job candidates for a wide spectrum of potential employers. The team of professionals are highly qualified and experienced in employee placements and training and reviews of those employees. EmpowerU removes all headaches and issues of seeking qualified personnel and ensures all issues are taken care of expeditiously, while delivering the best customer service.

EmpowerU History

EmpowerU is owned and operated by Matt and Lauren Goodwin. Together, they have personally placed over three hundred job seekers into viable positions of employment over the past ten years by working in a nationally-known employment agency group. Both Matt and Lauren secured thousands of dollars for their employer, who received a payment for every person successfully placed into employment. With outstanding reviews by employers and a large following of those who have been placed by Matt and Lauren, they’ve determined that they can give back to the city of Ogden by opening their social enterprise, EmpowerU.

Since incorporation, EmpowerU has achieved the following milestones:

• Registered EmpowerU, LLC to transact business in the state of Utah.
• Have a contract in place for a 10,000 square foot office in a prime downtown building location.
• Have reached out to numerous former associates and people they placed to include EmpowerU any time they search for new employees.
• Began recruiting a staff of three and two office personnel to work at EmpowerU.

EmpowerU Services

Industry analysis.

The social enterprise industry is expected to grow over the next five years to over $1 billion. The growth will be driven by an increased recognition of the need to assist in improving the lives of others within the world. The growth will be driven by an increased desire to serve the world by using talents and time to build social enterprise businesses. The growth will be driven by the popularity of including a “social awareness” facet within corporate mission statements. Costs will likely be reduced as social enterprises seek to reduce profits and increase services. Costs will likely be reduced as businesses increase voluntary funding for social enterprises.

Customer Analysis

Demographic profile of target market.

Customer Segmentation

EmpowerU will primarily target the following customer profiles:

• Medium-to-large businesses
• Residents of Ogden
• Human resource managers
• Community associations
• Governmental agencies

Competitive Analysis

Direct and indirect competitors.

EmpowerU will face competition from other companies with similar business profiles. A description of each competitor company is below.

Home Companion Care Services

Home Companion Care Services is a full-service placement agency of caregivers. The primary target market consists of elderly individuals who require in-home care and people with disabilities who need assistance with daily activities. Home Companion Care Services also engages with families seeking compassionate support for their loved ones. While services are not medically related, services may include medication reminders, running errands, purchasing and preparing food, bathing and personal grooming and other essentials for daily living.

Home Companion Care Services was started by Liam Gallagher, who saw a gap in the employment of caregivers when his mother required a caregiver and the availability for one was extremely limited. He also noted that most caregivers were not paid enough to make their lives sustainable. With this in mind, he started Home Companion Care Services as a social enterprise to invest in making the lives of the elderly and disabled better, as well as the lives of the caregivers enriched. With these positives at the forefront, Home Companion Care Services was started six years ago and continues to build momentum at this time. Fees for placement of caregivers is modest and reasonable in comparison to competitors.

Heads-Up Auto Repair

Heads-Up Auto Repair was started in 2020 by Neil Patterson, the owner of an auto repair chain in Utah. When Neil noted that several viable auto repairmen did not have employment due to former prison records, he started the social enterprise, “Heads-Up Auto Repair,” as a way to enrich the lives of these qualified repairmen, while earning a profit that would enrich their lives. The program for job training contains the phrase, “Heads Up,” as in “holding one’s head up high with pride in one’s work and the completion of that work successfully”.

Heads-Up Auto Repair serves customers throughout the state of Utah, where location managers are specially trained to assist repairmen in various aspects of customer service, team-bonding, personal skills and education, English-as-a-second-language training, and other services that increase the likelihood of the individuals continuing to excel in both the repair services they provide, but with an increased confidence in their lives overall, as well.

Animals Gone Wild

Animals Gone Wild is a wildlife viewing business that is a social enterprise located thirty miles from Ogden, Utah. Animals Gone Wild was started in 2010 by Amber Stenson, who determined that wild animals should live in the wild, even if their lives started in an enclosed zoo exhibit or other enclosed experience. Amber began a fundraising campaign to build and maintain the wild existence arenas for several wild animals, encouraging volunteers to serve the animals with her throughout their lives. Animals Gone Wild charges a fee for visitors to ride a trolley through the “villages” where various species of wild animals live. Payments by visitors covers the costs of caring for and feeding the animals, while fundraiser campaigns pay for the structures, buildings and care of the Animals Gone Wild structural needs.

Competitive Advantage

EmpowerU will be able to offer the following advantages over their competition:

• Comprehensive menu of services that benefit both the employers and the job candidates
• As a social enterprise, EmpowerU charges extremely reasonable rates for employee placement, making them the lowest-priced employment service in Ogden

Marketing Plan

Brand & value proposition.

EmpowerU will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a comprehensive array of services benefiting employers, employees, and the greater Ogden population
• Intensive training and preparation for job candidates, far beyond those of competitors
• Unique reviews and assessments of employees during monthly and yearly visits

Promotions Strategy

The promotions strategy for EmpowerU is as follows:

Word of Mouth/Referrals

EmpowerU has built up an extensive list of contacts over the years by providing exceptional service and expertise to their clients and personal associates. Several former employer clients will follow the Goodwins in their new social enterprise to secure employees and will refer EmpowerU to their associates.

Professional Associations and Networking

EmpowerU will extensively target the professional associations and governmental agencies within the city of Odgen to inform and invite potential employers to seek qualified employees through EmpowerU.

Social Media Outreach

Through several social media channels, prospective employees with a wide variety of skills will be invited to reach out to EmpowerU for job training and placement. Invitations via social media will also invite employers of private companies and governmental agencies, particularly human resources managers, to engage with EmpowerU to place employees into advantageous roles.

Website/SEO Marketing

EmpowerU will fully utilize their website. The website will be well organized, informative, and list all the services that EmpowerU provides. The website will also list their contact information and offer an online reservation system for potential employees who would like to talk with or visit the EmpowerU offices. The website will engage SEO marketing tactics so that anytime someone types in the Google or Bing search engine “job recruitment company” or “employment agency near me”, EmpowerU will be listed at the top of the search results.

The pricing of EmpowerU will be moderate and below competitors so employer clients will feel they receive excellent value when engaging new hires as a result of their services.

Operations Plan

The following will be the operations plan for EmpowerU. Operation Functions:

• Matt Goodwin will be the co-owner and President of the company. He will oversee all employer client relations.
• Lauren Goodwin will be the co-owner and Vice President of the company. She will oversee the recruiting of potential job candidates.

Milestones:

EmpowerU will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts
• 6/1/202X – Finalize employment contracts for EmpowerU clients
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into EmpowerU office
• 7/1/202X – EmpowerU opens its office for business

Financial Plan

Key revenue & costs.

The revenue drivers for EmpowerU are the fees they will charge to employer clients for their employee placement services.

The cost drivers will be the overhead costs required in order to staff EmpowerU. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

EmpowerU is seeking $200,000 in debt financing to launch its social enterprise. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Employer Clients Per Month: 30
• Average Revenue per Month: $60,000
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Social Enterprise Business Plan FAQs

What is a social enterprise business plan.

A social enterprise business plan is a plan to start and/or grow your social enterprise business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Social Enterprise business plan using our Social Enterprise Business Plan Template here .

What are the Main Types of Social Enterprise Businesses? 

There are a number of different kinds of social enterprise businesses , some examples include: Trading social enterprise, Financial social enterprise, and Non-governmental organizations (NGOs) and charity social enterprise.

How Do You Get Funding for Your Social Enterprise Business Plan?

Social Enterprise businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Social Enterprise Business?

Starting a social enterprise business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Social Enterprise Business Plan - The first step in starting a business is to create a detailed social enterprise business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your social enterprise business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your social enterprise business is in compliance with local laws.

3. Register Your Social Enterprise Business - Once you have chosen a legal structure, the next step is to register your social enterprise business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your social enterprise business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Social Enterprise Equipment & Supplies - In order to start your social enterprise business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your social enterprise business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

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A business planning guide to developing a social enterprise

This guide has been written for voluntary and community organisations that want to develop new social enterprises. Most are looking at social enterprise as a route towards sustainability or as a way to expand their portfolio of existing services.

Although the guide is focused on helping voluntary and community organisations to develop new social enterprises, they anticipate that it will also be useful for:

Individual social entrepreneurs who are aiming to set up a business for a social purpose.

Cooperative or employee owned social enterprise activity.

Community groups exploring whether social enterprise is an appropriate way to regenerate and/or create employment for their community.

Voluntary or community organisations that want to transform their organisations into social businesses.

Banks or building societies who are increasingly working with social enterprises to help them to develop their business.

Within the guide, they’ve outlined a step-by-step approach to starting up your social enterprise and have focused on several key issues surrounding business development.

They’ve assumed a fundamental knowledge of business planning, because they recognise that there is already a range of good resources to support business planning, so they’ve chosen to focus on those issues that are specific to social enterprise.

The feedback that we received on the previous edition of the guide highlighted its usefulness as a management tool for community groups, voluntary organisations and project-based social entrepreneurs. Many said that they found the guide to be a useful resource in writing a business plan and in developing their organisation with a view to generating a significant income from trading or commercial activity.

The guide is available here and here .

The author of this guide – Fourth Sector Development – is part of the wider Forth Sector group which provides supported employment placements, training and employability skills to people with long term and enduring mental health problems and others significantly disadvantaged in the workplace. 

Forth Sector is a registered charity and social enterprise running social business offering real and meaningful employment to people facing difficulties in securing employment.  FSD repatriates all profits generated through trading back to Forth Sector enabling the charity to further its work in the community.  Currently Forth Sector offers around 80 supported employment placements annually as well as a further 80 learning and development opportunities. To find out more about key FSD team members and their expertise, click on their picture below.

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Good company » growth studio, 7 steps to becoming a successful social entrepreneur.

Making a difference is at the heart of being a social entrepreneur, and these steps will help you succeed in your endeavor.

Social entrepreneurs are a big-hearted breed. They care deeply about more than earning a profit. They’re also passionate about making a difference.

For some, such as Yoobi founder Ido Leffler and TOMS founder Blake Mycoskie, that means donating a product to an individual in need for every product purchased. For others, such as Scholly co-founder Christopher Gray, that means helping low-income students find the scholarship money they need to make their college dreams come true.

To succeed as a social entrepreneur, as these inspiring change-makers have, you also need more than a great purpose-driven business idea. You need a step-by-step plan and the commitment to see it through, says C.J. Hayden, a San Francisco-based social entrepreneurship coach and founding board member of the San Francisco Bay Area Chapter of the Social Enterprise Alliance .

“If you feel called to make more of a difference in the world and want to make a living while doing it, you’ll need a clear roadmap for your journey,” Hayden, a social venture founder herself, said in an interview. “A specific set of directions to get your business from a flash of inspiration to off the ground is required.”

Here are seven practical, actionable steps that Hayden suggests carefully following to become a successful social entrepreneur — and to truly be the change you wish to see in the world:

Write a mission statement

“Start by deciding precisely who you want to serve and exactly where and how you want to serve them. Be equally clear about the problem you’d like to solve for this demographic through your business service or product.

Think about your natural talents, core competencies, professional skills and training, and access to needed resources. Ask yourself simple guiding questions like ‘What will I do?’ ‘How will I do it?’ ‘Who am I doing it for?’ and ‘What value will I provide?’ The answers to those questions will inform your mission statement.”

Additional resources:

• How to Change the World: Social Entrepreneurs and the Power of New Ideas , by David Bornstein
• The Power of Unreasonable People: How Social Entrepreneurs Create Markets That Change the World , by John Elkington and Pamela Hartigan

Research the field

“Learn more about the social business landscape you want to work in and see who the players are and how they’re changing the world. Don’t reinvent the wheel. If a social entrepreneur out there is already doing exactly what you want to do, use that as inspiration and fuel to come up with your own distinctly different purpose-driven offering.

Google is your friend here in finding those who you might consider competitors or collaborators. Also, if you were someone who wanted to engage with a business offering that you want to offer, what would he or she search the web for? What specific keyword search terms would he or she use? See yourself as your ideal customer or beneficiary and search online through that lens.

You’ll also want to research trade associations specific to social entrepreneurship. The Social Enterprise Alliance , which has 16 chapters throughout the U.S., is a great first resource to reach out to. See who the members of this group are and what types of social enterprises they’re operating.

Further honing in, research trade associations geared toward your particular potential offering. For example, if you aim to provide office supplies using the popular one-for-one donations model, you’ll want to reach out to the National Office Products Alliance . See what the people there are teaching their members and the topics they’re talking about at meetings and conferences. This will help you get the pulse of what’s going on in the field you hope to enter.”

Additional resource:

• List of industry trade groups in the U.S.

Conceptualize your unique offering

“How can you offer something different than what others are already offering? The more grounding and granularity you have in what you want to do and how you will do it — ideally in ways that have not been done before — the more unique your social enterprise will be.

A helpful exercise here is to grab a pad of Post-It notes and to put on each note a word that is directly related to what you’re trying to accomplish with your social enterprise. Then stick the notes on walls or windows where you can easily see them and move them around in different combinations.

Over several days or weeks, continue to adjust your sticky notes, keeping in mind what you want to achieve and who you want to help, plus how you can do all of that uniquely, as only you can within your own specific social niche.

Or, if you can’t be entirely different from others already in the field you’re venturing into, think about ways you can add value to their efforts, perhaps collaboratively.”

• From Idea to Concept: The 3 Stage Business Plan for Aspiring Entrepreneurs , by John Endris

Reach out to team members for feedback and support

“What I mean by ‘team member’ is not necessarily someone who is going to work with you and for you, either as a business partner or an employee. Rather, it's someone who will be a steadfast supporter of what you’re trying to accomplish through your purpose-driven venture. Someone who is on your team, rooting for you.

To gather outside support, look to people already in your life and career who you consider to be trusted mentors and advisors. Or, they may be some of the competitors and collaborators you came across when researching the field, or members of relevant trade associations that you looked into. They could also simply be like-minded souls who want to make a difference, too, or already have.

Team members are people you can freely, openly bounce ideas off of and seek feedback and advice from. People who have been in your shoes before who can help guide you to success, ideally opening up their networks and resource pools along the way to propel you forward.

Present your supporters and mentors with your mission statement, and simply see what they think about it. You’ll have to have a thick skin when doing this because some may provide very strong corrective criticism. Remember that your team members likely have good intentions and want to see you succeed.”

• SCORE free small business mentorship services
• Social Impact International's mentorship network

Develop your business model

“A business model is a roadmap for how your enterprise is going to make money. Think about just how far you want your services and/or products to reach. Are you going to be satisfied with serving and assisting just the number of customers that you yourself can serve locally as one person? Or are you going to need to expand and hire in order to make a bigger impact?

Decide and document exactly how much money you want or need for this social enterprise to bring in order to support your mission, pay for itself, pay you, and anyone you might hire, and to perhaps eventually expand. What specific type of business model will lead to the earnings you require and desire?

Also ask yourself if the beneficiaries of your enterprise’s goals will pay for your enterprise themselves, or are you going to have one group of people pay for your products and then have another group of people be beneficiaries? For example, the one-for-one model of TOMS Shoes has one group of people — consumers — paying for the shoes and individuals in need are the beneficiaries, which is a very common social business model.

An example of a social enterprise where the beneficiaries themselves pay for products or services is micro-lending ventures . These increasingly popular business model structures involve making microfinance loans to people who pay interest. The interest collected from them funds the repayment of the loans and provides profits, as well as funding for additional loans to be made.

Once you settle on which type of social enterprise business model fits your business concept best — and there are many to choose from — consider putting your chosen model forth in a local social entrepreneurship pitch competition, with the goal of refining it as much as possible.”

• Business Model Generation: A Handbook For Visionaries, Game Changers and Challengers , by Alexander Osterwalder and Yves Pigneur
• Power to the People: How to Create a Profitable Social Enterprise , article by bplans.com
• Global Social Venture Competition

Identify initial funding sources

“This is where you’ll want to do your homework to find out where you’ll source seed funding from. Where will you obtain the funding you need to launch and what will be required to get it?

Will you seek a traditional business loan or can you afford to self-finance? Will you look to friends and family for loans or reach out to angel investors and venture capitalists?

What about perhaps crowdfunding your social enterprise through Indiegogo [as Lisa Curtis did to get her global poverty-fighting superfood startup Kuli Kuli, Inc. off the ground]? Crowdfunding is a particularly wise move if you already enjoy some early success as a startup social venture, and have a large mailing list or e-newsletter subscriber base you can broadcast your crowdfunding campaigns to. If you don’t have broad target demographic reach or a significant social following, crowdfunding might only produce very small amounts of funding and may not be worth the time investment on your part.

One of the best funding options specifically for social enterprises are impact investing groups, which exclusively fund purpose-driven companies. The aforementioned Social Venture Network is a great place to connect with investors that fall in this growing category.

As with any kind of outside investing, you’ll want to be cautious that the investors you work with are 100 percent behind your social mission, and not just investing in order to get the highest return possible.”

• The Art of Startup Fundraising: Pitching Investors, Negotiating the Deal, and Everything Else Entrepreneurs Need to Know , by Alejandro Cremades and Barbara Corcoran
• The Global Impact Investing Network
• Investopedia’s Top 5 Impact Investing Firms
• RSF Social Finance

Write an action plan (and stick to it)

“An action plan — not to be confused with a business plan — very specifically lays out the to-do tasks and action items you need to commit to and by when. It will include the exact date you want to launch your social venture and how long it will take you to get there, working backward from that date.

Your action plan is your master to-do list, it’s your schedule, it’s your calendar. Build it around your annual, monthly, weekly, daily and even hourly entrepreneurial goals.

Particularly when you’re starting up from scratch and you don’t have outside accountability to anyone, carefully creating an action plan — and meticulously following it — is absolutely essential to staying on track. When you do, you can transform your dreams of changing the world into reality.”

• C.J. Hayden’s Life In a Notebook Planning System
• American Express’s 9 Essential Action Items For Every New Entrepreneur

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Using the Business Model Canvas in a Social Entrepreneurial Context

Introduction.

In today’s rapidly evolving business landscape, entrepreneurs are increasingly recognizing the importance of incorporating social and environmental goals into their ventures. Social entrepreneurship, a growing field that focuses on creating sustainable solutions to societal problems, requires a unique approach to business planning — the Business Model Canvas.

Since we here at SteepConsult are supportive of social entrepreneurs everywhere, we decided to put our heads together and use our own experience in this field to see what knowledge we could share with all current and prospective social entrepreneurs who are out there looking for knowledge to improve their chances at success.  

Today, we shall be writing about a tool that is very useful for any social entrepreneur who wants to launch a new initiative or find ways to explain their social enterprise in a straightforward and striking visual manner to lay people. 

This tool has already gained widespread popularity in a normal for-profit context, as it is an extremely effective representation of business ontology. We are talking of course about the popular Business Model Canvas (BMC).  

This particular tool is so popular because it allows entrepreneurs to effectively summarize their business and present it in a visually appealing manner to people without much understanding of their specific business. This is important because as another popular fake Einstein quote – as we did to introduce you to the concept of what is a VRIO analysis – so aptly states: 

“’If you can’t explain it to a six-year-old, you don’t understand it yourself” 1 Most probably not Einstein

While the veracity of this claim is something you should take with more than a grain of salt, it does reflect an important tenet of human psychology. People will not invest in you, nor will they buy your product or else be interested in working with or for you if you cannot clearly explain to them what your business is all about. 

To help clarify your business idea and ensure that you are able to pitch it properly to third parties, the BMC is an ideal tool to help you focus. Important to know for social entrepreneurs in particular is that the BMC that is used in a social entrepreneurial setting does however sport a few slight differences to the classic format designed by Alexander Osterwalder and Yves Pigneur in 2005. We shall highlight these in the sections to come and show you how to make proper use of the differences. 

This article will study the application of the BMC in a social entrepreneurial context, highlight its benefits and provide practical insights for professionals in this space who are aiming to create impactful ventures. 

Understanding the Business Model Canvas 

The Business Model Canvas, developed by Alexander Osterwalder and Yves Pigneur, is a strategic management tool that helps entrepreneurs visually depict and analyse the key components of their business model. It consists of the following nine building blocks, each of which we have clarified with a small explanation:

Customer Segments

You can not be everything to everyone. The key to success is focus. By zooming in on the nexus of unique pain points, demographics, buyer behaviour, and other relevant characteristics, you should be able to segment your potential audience and identify those segments where the chance of success is the greatest. 

Value proposition

As with the customer segments, your value proposition should also focus on the key decision-making features in your industry. On these key features, you should be able to define why your product or service is better than its competitors (e.g., it’s cheaper, more user-friendly, higher in quality, more robust, more sustainable, etc.). 

Which distribution channels are you going to use to bring your product/service to your customers. This can be a network of brick-and-mortar locations, a webstore, social media, etc.

Customer Relationships

This aspect of the BMC is focussed on the interaction with customers and is highly contingent on the exact type of business you are. 

Revenue streams

In this aspect of the BMC, an entrepreneur is asked to detail how their business is going to make money. This seems a rather straightforward question at first glance, but it can soon start to become quite complex. A prime example on this front is Amazon.  

If we simplify Amazon’s business model, it is a web shop and it makes its money through the buying and selling of goods. However, Amazon generates massive reams of data due to the popularity of its product. This data is also monetized through online advertisement options that are fed by the data it gathers on its customers.  

On top of that, to host all the data produced by their web platform, Amazon became an early investor in cloud computing which led to the rise of AWS, which monetizes the expertise Amazon has built in cloud computing.

Key Activities

Here, we have to return to our value proposition and ask how we plan to achieve it. It is in other words a question of toolkits. Will you offer superior service by hiring more people? Will you offer cheaper services by investing heavily in automation?

Key resources

This section lists every resource that enables you to organize your key activities and thus make good on your value proposition. This could be staff members with specific expertise, IP, brand value, material assets such as factories, capital, etc.

Key Partnerships

This section of the BMC lists those stakeholders (e.g., your suppliers, customers, mentors, trade associations, etc.) which might enable you to succeed. 

Cost structure

This section should be completed with an overview of all the key cost drivers, as well as try to categorize them (fixed v. variable, emphasis on capital or labour expenditures, etc.). 

Filling the business model canvas

Below we have included a rather valuable schematic overview of the various aspects of the BMC. We like this view primarily because it does a great job in mapping the dynamism of this framework:

A common mistake when completing out the BMC is that not enough attention is paid to the interplay between the nine key components. It is however a fact that you cannot really look at one part of the BMC in isolation if you truly want to fulfil its promise. The sign of mastery lies in the fact that you can explain how the cost structures allows you to hire/maintain key resources, which allow you to organize your key activities and thus deliver on your value proposition.  

While we will see in just a bit that the BMC is preferably filled out from right to left, which allows you to move from the questions that are most visible to your clients to the back-end processes which support it, once it is completed you should be able to jump from one section of the BMC to the other and see the logical connections in between the different areas. 

As mentioned before, the BMC was initially designed for traditional businesses. However, its adaptability and flexibility make it highly relevant for social entrepreneurs as well. Naturally, the structural set up of a traditional BMC is completely geared towards the ontological components of a traditional for-profit business structure and all the peculiarities that this entails.  

As we shall examine in the next chapter, the traditional BMC structure has been slightly tweaked at various points to capture the reality as experienced by social entrepreneurial ventures.

Adapting the Business Model Canvas for Social Entrepreneurship 

When applying the BMC to a social entrepreneurial context, certain modifications and considerations are necessary. Let’s explore how each building block can be approached in the context of social entrepreneurship: 

In the social entrepreneurship realm, the “customer segments” portion of the BMC becomes a little bit more complicated. For these types of ventures, a split is often introduced between clients on the one hand and beneficiaries on the other hand (although not always). 

This split is particularly necessary in cases of cross-financing, where a service or product is sold to for-profit customers to finance the service or product offered to beneficiaries. Roughly speaking, we might say that the beneficiaries are the reason for the social project, while the clients are more impacted by the core entrepreneurial drive. 

In any case, identifying the needs, preferences, and challenges of both beneficiaries and targets is crucial to create a relevant value proposition.

Value proposition of offer

Social entrepreneurs must articulate their unique value proposition, which addresses both social and economic or traditional benefits. We prefer to describe this as the “Offer” to differentiate it from the more limited scope of a value proposition in the for-profit BMC. To bring a good “Offer” description to the table, you need to identify the social problem that your venture addresses, the solution being offered, and the value it creates for beneficiaries, partners, and funders. 

Effective communication and distribution channels are also vital for social entrepreneurs. They need to consider the most appropriate methods to reach their target audience, ensuring the delivery of their products, services, or interventions effectively. 

In social entrepreneurship, building strong relationships with beneficiaries, partners, and stakeholders is fundamental. This often requires a deep understanding of community dynamics and an empathetic approach to foster trust and collaboration.

Revenue Streams

Generating revenue is a crucial aspect of any sustainable venture. Social entrepreneurs need to consider diverse revenue models that align with their mission, such as impact investments, grants, cross-subsidization, or earned income strategies.

Key activities

Social entrepreneurs engage in a range of activities to create social impact. This includes research, product or service development, community engagement, advocacy, and policy work. Identifying and prioritizing key activities is essential for efficient resource allocation.

Key Resources

In addition to financial and human resources, social entrepreneurs must consider the intellectual, social, and natural resources required to deliver their intended impact. Leveraging partnerships, volunteer networks, and shared resources can enhance their operational capacity.

Collaboration is often vital for social entrepreneurs, who often work with diverse stakeholders, such as non-profits, governments, corporations, and community organizations. Forming strategic alliances can broaden the reach, expertise, and impact of a social enterprise.

Analysing the cost structure helps social entrepreneurs ensure financial sustainability. They must consider direct costs, overheads, and investments required to deliver their impact while maintaining a balance between social objectives and economic viability. 

Benefits of Using the Business Model Canvas for Social Entrepreneurs 

The adoption of the BMC by social entrepreneurs offers several advantages, we have already introduced a few of these in our introduction, but we shall quickly reiterate all the arguments in favour of using the BMC below: 

Visual Clarity:

The BMC provides a clear and visual overview of the entire business model. This allows social entrepreneurs to:

• Identify potential gaps, synergies, and areas for improvement. 
• Pitch their business in convincing and authoritative manner to customers, investors, and other potential partners 

Iterative Approach:

The BMC allows for easy experimentation and iteration, enabling social entrepreneurs to refine their model over time. As a living document, it is great to expose to successive generations of employees/partners/beneficiaries/other stakeholders so that it can be constantly refined. In this manner, the BMC is a low-effort way of engaging in Open Innovation (on which we have quite coincidentally written the definitive guide, available here).

Applying the Business Model Canvas to a real-life Use Case 

As we here at SteepConsult like to get our hands dirty, we thought it would be a good idea to put our knowledge into practice and apply the social entrepreneurial BMC to a social venture that we ourselves greatly admire for its results. 

Aravind Eye Care System is a pioneering healthcare organization in India that focuses on providing high-quality, affordable eye care services. Founded by Dr. G. Venkataswamy in 1976, Aravind Eye Care System aims to eliminate needless blindness by making eye care accessible to all sections of society, particularly the underprivileged.

Aravind’s innovative approach includes a unique cross-subsidy model, where revenue from paying patients is utilized to offer free or subsidized services to those who cannot afford them. This model enables the organization to reach a diverse range of patients and ensure that quality eye care is available to all, regardless of their socio-economic background.  

With this model, Aravind has been able to expand tremendously. Not only has it performed about 7.8 million operations over the course of its operations, but its impact has also expanded from its original Indian heartlands to countries all over the developing world due to its training programmes and manufacturing prowess (with a focus on creating low-cost and affordable eye care tools for Low-and Middle-Income countries around the world).  

We have completed a BMC for Aravind Eye Care System and included it here for teaching purposes below. We have tried to make it as simple as possible, using post-it like visuals as a call back to the way it is ideally filled in during a collective exercise with an experienced facilitator like those, we have at SteepConsult. The logos are there to make it visually a bit more striking and the arrows are there for the benefit of the reader to showcase the relationship between the various aspects of the BMC: 

Now let us go through this BMC example in a step-by-step approach. As mentioned earlier, when starting from an empty canvas, it is generally recommended to begin with the client-facing parts of the BMC first. 

We would recommend beginning with the ‘Offer’ first, as your value proposition is what drives everything else in your project. As stated before, in a social entrepreneurial venture, the question of the offer is rather more complicated than in a normal for-profit context in the sense that you can have both a traditional and a social offer. 

In case of Aravind, the division is relatively uncomplicated, since it offers the same type of services (i.e., high-quality eye care) to both its paying clients and its subsidized beneficiaries. The difference is that the former have to pay market rates for the therapies they consume, while the beneficiaries are helped at rates that are far below standard market prices. Note that such an uncomplicated division is not necessarily the standard.  

It is perfectly possible for a social enterprise to offer one type of service or product to paying clients and do something completely different to help its beneficiaries. The benefits of the Aravind approach, however, are quite attractive since offering the same service/product in the traditional and social offer allows you to realize economies of scale that would not be present otherwise. 

In the case of Aravind in particular, this is vital as a lot of eye surgery is (perhaps somewhat counter-intuitively) rather sensitive to scale. Thus, Aravind’s surgeons get a lot of practice from working on their poor patients, which ups the standard of care they can offer to their paying customers. Since the quality of their offering is higher, Aravind’s paying customers are prepared to lay out greater sums for their treatment at Aravind’s facilities. Thus, the paying patients cross-subsidize Aravind’s offer to its beneficiaries.  

On top of that, further savings are achieved by combining the two patient flows, lowering the costs per treatment. Due to the lower cost per treatment, Aravind’s profit margins on its paying customers are higher and the expenses for offering treatments to poor beneficiaries are lowered. The interplay between all these various advantages thus creates a virtuous circle that benefits everyone serviced by Aravind. 

Customer Segment 

Our explanation of the Offer above already does quite a bit to explain the customer segmentation in place at Aravind. Like with the Offer, there is a division between the clients (i.e., the same group of people who would be present in a for-profit BMC) and the beneficiaries (i.e., the newly introduced group of people who benefit from the ‘social’ side of the project). 

In this section, we shall therefore just restrict ourselves to adding a bit more context. For starters, we wrote in our previous section that eye care surgeries lend themselves to scale quite well. This is primarily visible in the high number of people Aravind treats for avoidable blindness. The most common cause of which are age-related cataracts.  Since blindness has such a tremendous impact on the daily life of patients in developing countries (e.g., by preventing them to work or take care of their families, despite being otherwise healthy), it is hugely cost-effective to prevent/cure any cases of blindness that are as easy to fix as cataracts. Since this old age disease affects both the rich and the poor similarly, it is easy to go and hunt for the economies of scale Aravind’s model requires. 

As to paying clients, here we would like to stress the fact that people who could afford this type of treatment in the past would often have to go abroad to seek treatment. Despite the fact that for many of these richer patients, the additional expense this caused was not necessarily a dealbreaker, the benefits of finding proper care close to home are self-evident. It is therefore easy to see why richer patients would have a strong incentive to make use of Aravind’s local services. 

Customer relationships 

On the relationship front, there is relatively little difference between the traditional and social offer at Aravind. As this is a medical relationship in both cases, it is important that interactions with beneficiaries/clients are professional. 

As we shall see in the next section of distribution channels, Aravind has also built out an expansive infrastructure of primary care facilities. These focus on preventative treatments and aftercare for the people who had to undergo a surgical intervention. To ensure that people come in regularly, it is important for Aravind’s staff members to strive for a personal and close relationship with both groups serviced by themselves. 

Distribution channels 

To facilitate the type of care that is necessary to fulfil its mission, Aravind has to be present in close proximity to the final users. That is why they have built an extensive network of over a hundred primary eye care treatment centres embedded in local communities and these centres in turn serve as a funnel to bring the patients who need surgery to the network of 14 hospitals which Aravind has set up to bring this type of capital-intensive surgery to the masses it serves. 

Key Activities 

As to Aravind’s key activities, we can also be rather brief. The original idea that animated Aravind was to bring affordable eye care to the masses. In the beginning, its sole focus was on carrying out the actual treatments. 

Once they had optimized their model and were able to benefit from the economies of scale we have described in our section on their Offer, Aravind started to have room to broaden its scope. It has thus started innovation activities in the broader field of eye care surgery with a focus on reducing costs.  

If you are interested in more information on expanding your core offering with exploratory activities which can over time become new drivers of business, feel free to reach out to SteepConsult. Our consultants are specialized in the use of StrategyTools diagrams, which allow for a structured and efficient estimation of future business opportunities. [To be added in a box, with a link to information on ST, to be checked with Quentin if there is already something on StrategyTools available on our website] 

This has led to training programmes to spread knowledge on the one hand, and innovation about the cost-effectiveness of eye care surgery equipment and treatment on the other hand. Since most of the leading providers of this type of equipment/medicine/treatment focus on western markets were the need to be cost-effective is less pronounced, Aravind’s focus on affordability has allowed it to emerge as one of the few providers of (relatively) low-cost treatment options, broadening its positive impact to include most of the developing world. 

The know-how that as a result of these activities has accrued to Aravind has furthermore strengthened their position, as it has allowed them to recoup the costs of its innovations by bringing them to an even wider audience than the one Aravind traditionally services in India alone.  

Key Resources 

On Aravind’s key resources, we can again be brief. The biggest advantage it currently has is its scale, this has allowed it to build up deep know-how through the employment of skilled staff. This has allowed it to further improve its brand profile and has led to a virtuous circle of partnerships.  

Partner Network 

Aravind, as a successful social venture of considerable scale, has over the years been able to set up wide-ranging partnerships with various international organisations, multi-national enterprises, and government agencies (see logos on the BMC for some examples). 

A successful social enterprise can be an attractive partner for all three groups, since association with the social venture will lend a halo-effect to the organisations it partners with. A particular strength of an organization that is as big as Aravind is that it can be a more logical counterpart for the colossal type of organizations like the UN or a company like Google who seek to use some of their resources for the benefit of all. For these organizations, a social venture that is of a sufficient scale has a gravitational pull all of its own as it unburdens for example Google from having to keep track of many different ventures individually. 

Revenue Streams 

From the partner networks, we seamlessly flow into the revenue streams. In the case of Aravind, it is very clearly an example of hybrid financing. Hybrid financing means that the organisations is not dependent on donations and grants only. 

Aravind does receive some financial supports from its wide partner network (explaining the red arrow that runs from partner networks to revenue streams), but most of the income comes from two other sources, namely its core service offering and its ancillary services. 

The income from its core activities is the revenue generated by Aravind’s core offering to its paying clients. The income from ancillary services is all the income they derive from their training programmes, R&D activities and the manufacturing of core surgical tools, medicine and other equipment needed to provide high-quality eye care and surgery. 

Cost Structure 

The cost structure of Aravind is relatively uncomplicated. It primarily boils down to three major blocks. First, there are the costs related to staffing. To maintain a large and expansive network, Aravind needs good employees (mostly highly trained doctors and nurses). This of course requires competitive salaries and other benefits, which given the size of the workforce does amount to a pretty number. 

Secondly, there are the costs related to maintaining its facilities. Both the primary eye care centres and the hospitals are expensive to maintain, so that also soaks up a lot of costs. Finally, there are all the costs associated to the ancillary activities of Aravind. Production facilities and the development of courses all require expenditure and together this is the third block of the cost structure.

Conclusion 

In the realm of social entrepreneurship, where the pursuit of social and environmental impact is paramount, the Business Model Canvas (BMC) serves as a valuable tool for planning and strategizing. By adapting the BMC to suit the unique needs of social entrepreneurs, professionals in this field can effectively design and execute ventures that address pressing societal challenges. 

Furthermore, the BMC’s visual nature offers a clear and concise representation of the entire business model, allowing social entrepreneurs to identify areas for improvement, innovation, and collaboration.  

By utilizing the BMC, social entrepreneurs can effectively communicate their ideas, attract stakeholders, secure funding, and measure their progress towards achieving their social mission. Moreover, the canvas facilitates strategic decision-making, resource allocation, and the identification of key partnerships necessary for maximizing impact. 

It is important to note that the BMC is not a static tool but a dynamic one that should be revisited and adapted as the social enterprise evolves. Social entrepreneurs must remain agile, open to feedback, and willing to iterate their business models to stay relevant and effective in the future.

After having amassed a wealth of experience in Innovation & Change Management, Arjan joined SteepConsult to support our transition towards an innovative, solution-oriented, and sustainable future. As our in-house intellectual, he enjoys sharing his knowledge with customers and colleagues alike.

Reference List 

Hoos, F. (2017). Social Entrepreneurship and Changemaking: From Traditional to Social Entrepreneurial Business Model Development [Course Presentation]. Innovation Management & Entrepreneurship University Certificate, HEC Paris.  

Marbaise, M. (2017). The Business Model Canvas Let Your Business Thrive with this Simple Model . AA 50Minutes. 

Orgler, M. (2021, May 18). How to Fill in the Business Model Canvas? – Business to the Moon – Medium. Medium . Retrieved from https://medium.com/business-to-the-moon/how-to-fill-in-the-business-model-canvas-590e200a13da   

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What Is a Social Entrepreneur?

• Role and Goals
• 6 P's of Social Entrepreneurs
• Other Social Concepts

The Bottom Line

Social entrepreneur: definition and examples.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

A social entrepreneur is a person who pursues novel applications that have the potential to solve community-based problems. These individuals are willing to take on the risk and effort to create positive changes in society through their initiatives. Social entrepreneurs may believe that this practice is a way to connect you to your life's purpose, help others find theirs, and make a difference in the world (all while eking out a living).

Widespread use of ethical practices—such as  impact investing , conscious consumerism, and  corporate social responsibility  programs—facilitates the success of social entrepreneurs .

Key Takeaways

• A social entrepreneur is interested in starting a business for the greater social good and not just the pursuit of profits.
• Social entrepreneurs may seek to produce environmentally-friendly products, serve an underserved community, or focus on philanthropic activities.
• Social entrepreneurship is a growing trend, alongside socially responsible investing (SRI) and environmental, social, and governance (ESG) investing.
• The four primary types of social entrepreneurs are community social entrepreneurs, non-profit social entrepreneurs, transformational social entrepreneurs, and global social entrepreneurs.
• Social entrepreneurs design their thinking around the six P's of launching an idea: people, problem, plan, prioritize, prototype, and pursue.

Investopedia / NoNo Flores

Understanding Social Entrepreneurs

While most entrepreneurs are motivated by the potential to earn a profit, the  profit motive  does not prevent the ordinary entrepreneur from having a positive impact on society. In his book The Wealth of Nations , the economist  Adam Smith  explained, "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest."

Smith believed that when individuals pursued their own best interests, they would be guided toward decisions that benefited others. The baker, for example, wants to earn a living to support their family. To accomplish this, they produce a product—bread—which feeds and nourishes hundreds of people.

A social entrepreneur might also seek to address imbalances in such availability, the root causes behind such social problems, or the social stigma associated with being a resident of such communities. The main goal of a social  entrepreneur  is not to earn a profit. Rather, a social entrepreneur seeks to implement widespread improvements in society. However, a social entrepreneur must still be financially savvy to succeed in their cause.

Types of Social Entrepreneurs

Community social entrepreneur.

A community social entrepreneur prioritizes the needs of a small geographical region, usually the community they live in. This type of social entrepreneur is less concerned about the specific nature of their endeavor; the primary purpose of their entrepreneurship is to benefit their local area.

This type of social entrepreneur often builds strong relationships in their community, taking advantage of relationships to leverage how resources flow within their town. Community members, local organizations, and the community social entrepreneur work together to make sure the needs of the community are met and partnerships that make sense are created.

Non-Profit Social Entrepreneur

Non-profit social entrepreneurs are the more common type of social entrepreneur where the entity has a broadly stated goal that benefits someone but not necessarily their direct community. With the introduction of remote or online social entrepreneurship, it is now easier to create entities with broader mission-driven purposes.

Non-profit social enterprises usually operate very similarly to a business. The primary difference is that the net profits of the non-profit enterprise are often returned back to the entity for further development of the program. Instead of there being investors to make money, a non-profit social entrepreneur strives to spend as much money as it can towards its mission.

Transformational Social Entrepreneur

As a start-up non-profit social enterprise grows, it often shifts into becoming a transformational social entrepreneur. As local non-profits grow, so can their mission. A transformational social entrepreneur looks to scale an operation from a single program to benefit various areas. For example, consider the broad reach of Goodwill; what started as a small non-profit social enterprise transformed into a much richer, broader entity with many more rules and regulations.

Global Social Entrepreneur

Sometimes, social entrepreneur endeavors aren't limited by borders or geography. Sometimes, people may try to solve overarching social concepts such as poverty, depression, or lack of living conditions.

Usually, the social entrepreneur may try to solve an issue in a specific region. However, these deep-rooted issues are often not specific to a region. Many of the solutions discovered in one area may be attributable to another.

These types of organizations easily have the greatest reach. For example, consider the breadth of the Bill & Melinda Gates Foundation . Their endeavors to find vaccinations for various diseases impacting those around the world are a clear example of global social enterprises.

Social entrepreneurship continually evolves; what may be a local communal non-profit one year may model into a global social enterprise the next.

6 P's of Social Entrepreneurial Enterprises

As social entrepreneurs embark on turning their ideas into successes, they often work through the following six areas. Each of these categories has different resources, roadblocks, or stages a social entrepreneur must often encounter.

Most social entrepreneurs start their endeavors by identifying what people they want to benefit. Sometimes, this is the people in their specific geographical region. Other times, this is people within a certain demographic (i.e. people with low income). Without a clear definition of who the social entrepreneur wants to serve, they will face difficulty in appropriately defining the scope of their enterprise. This puts the yet-to-be-created entity at risk of not having a clear vision.

Social entrepreneurs try to fix problems. More specifically, social entrepreneurs identify a problem that the people in the previous section face. Usually, during the brainstorming phase of an entity, the social entrepreneur will link the two together. For example, social entrepreneurs may try to defeat homelessness in their region. A social entrepreneur in this situation tries to help certain people (low-income individuals) with a problem (lack of available housing).

With the people and problems identified, a social entrepreneur must devise a plan to solve the problem. Social entrepreneurs not only strive to create a business plan to operate an entity, but they must also determine how this type of entity will receive funding and remain financially sustainable. The social entrepreneur must also evaluate how external parties can help it achieve its social goals.

One of the largest challenges for a social entrepreneur is a lack of available resources to tackle the problem they wish to solve. Whether that means not enough money, not enough specialized knowledge, or external forces that cannot be controlled, social entrepreneurs face many constraints. This means they must prioritize what they try to solve, how they go about operating, and what expansion looks like.

Because resources are limited, social entrepreneurs often test out solutions in small markets before expanding. This means creating prototype products, services, or processes. It also tests out how different funding and resources can help it achieve its goals. Though this stage may not foster trust in those who have provided an upfront investment with the social entrepreneur, other upfront investors may appreciate seeing a minimum viable product or prototype.

With the test case down, social entrepreneurs identify what went well and what didn't go well. It often surveys those who helped put the solution together as well as those receiving the benefit. This last step closes the full loop of activity, though a social entrepreneur should periodically evaluate each aspect and continually monitor for ways to better make their social change.

Social Entrepreneur vs. Other Social Concepts

Social entrepreneurship is related to socially responsible investing (SRI) and environmental, social, and governance (ESG) investing. SRI is the practice of investing money in companies and funds that have positive social impacts. SRI has also grown in popularity in recent years.

Socially responsible investors will often eschew investments in companies that produce or sell addictive substances (like alcohol, gambling, and tobacco). They may also seek out companies that are engaged in social justice, environmental sustainability, and alternative energy or clean technology efforts.

Socially conscious investors screen potential new investments for environmental, social, and governance (ESG) criteria. This set of standards considers how a company performs as a steward of nature, how it manages relationships with employees, suppliers, customers, and the communities where it operates, and how it treats its company’s leadership, compensates its executives, and approaches audits ,  internal controls , and shareholder rights.

According to ZipRecruiter, the average annual salary as of May 2024 for a social entrepreneur was just above $40,000 per year.

Examples of Social Entrepreneurship

The introduction of freshwater services through the construction of new wells is another example of social entrepreneurship. A social entrepreneur may have the goal of providing access to communities that lack stable utilities of their own.

In the modern era, social entrepreneurship is often combined with technology assets: for example, bringing high-speed internet connectivity to remote communities so that school-age children have more access to information and knowledge resources. Another example is microfinance institutions that provide banking services to unemployed or low-income individuals or groups who otherwise would have no other access to financial services.

The development of mobile apps that speak to the needs of a particular community is another way social entrepreneurship is expressed. This can include giving individuals ways to alert their city administrations to problems such as burst water mains, downed power lines, or patterns of repeated traffic accidents. There are also apps created to report infractions committed by city officials or even law enforcement that can help give a voice to the community through technology.

Other examples of social entrepreneurship include educational programs and helping children orphaned by epidemic disease. All of these efforts are intended to address unmet needs within communities that have been overlooked or not granted access to services, products, or basic essentials available in more developed communities.

How Do You Become a Social Entrepreneur?

You can become a social entrepreneur by considering who you want to help and what problem you want to solve. Once you have a targeted idea, it's often best to gather resources, understand where your limitations are, and decide what external parties you want to help craft the enterprise.

How Do Social Entrepreneurs Make Money?

Social entrepreneurs raise capital for their enterprises by connecting with other members of the community. "Community" does not necessarily need to mean physical location, as some enterprises may collaborate around the world for a common social cause. A social entrepreneur may collect grants, upfront donations from major donors (in exchange for public recognition), or use personal capital.

Do Social Entrepreneurs Pay Taxes?

It depends. Social entrepreneurs are usually not personally exempt from paying taxes. This means that almost all individuals are taxed on the income they make, regardless of whether or not the enterprise they work for is a social enterprise. On the other hand, most social entrepreneurs incorporate their enterprises as non-profit entities so their enterprises can operate tax-free.

Some people craft a business to make a lot of money. Other times, people start an enterprise for social good. The latter type of individual is called a social entrepreneur, and they often start by identifying the people and problems they want to help. Though there are many similarities between a social venture and a full-for-profit enterprise, the core difference is that a social entrepreneur prioritizes the good it creates for its community or recipient base.

Adam Smith. "An Inquiry Into the Nature and Causes of the Wealth of Nations," Pages 6-7. Harvard University, 1827.

Internet Encyclopedia of Philosophy. " Adam Smith (1723—1790) ."

ZipRecruiter. " Social Entrepreneur Salaries ."

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How to Write Successful Social Entrepreneurship Business Plans

Social entrepreneurship is always the hope and dream of many young office workers, as it represents the ultimate freedom. You can work however you want and whenever you want. You will become your own boss. It also presents opportunities for young entrepreneurs to put their talents to the test.

If you are looking to write a perfect business plan for your social business, this guide is the right choice for you!

What does a successful social entrepreneurship business plan look like?

However, if you want to start a business, you will need to learn how to write the right business plan. Studies have suggested that a well-written business plan and the commitment to follow it are the integral keys to success for many new businesses.

It would be a good idea to look at the factors of a successful business plan. A successful business plan consists of the following factors:

• A clear roadmap for the development of your business 
• Realistic expectations and assessments of one’s capabilities
• Convincing wordings 
• A solid marketing plan

These factors will work together to create the one marketing plan that will work, ensuring that your business will develop. A detailed business plan is also more likely to convince investors to fund your social business venture.

How can you write a business plan for social entrepreneurship?

Writing a business plan is an integral part of your future success. Still, it may be difficult to write one if you do not possess the experience. If you wish to write your own business plan, here are the step to follow!

1# Start with a summary

The summary is considered the most crucial section of the plan. This is the section that details what your company offers. In short, it is an overview of your business, allowing the investors to understand what your company is all about and what you are striving to achieve. For this reason, it is a good idea to start strong with a great executive summary.

Most executive summaries last about a page or a bit more. This section should not be excessively long. It can bore potential investors and detract them from reading the following sections. The best practice would be first to invoke a problem and then propose your solution. You could also add some differentiating points about your business that distinguishes you from other businesses in the same sector.

2# Create a fascinating company description

The next section should be dedicated to the history, mission statements, and objectives of your company. You will have to be concise here without missing out on any important piece of information, so it would be good to put extra effort into this section. 

The mission statement is the very raison d’etre of your business. It should succinctly convey your vision as well as inspire your investors to put their faith behind that vision. The mission statement is also the core of your business, so it should still be applicable even as your business grows. 

The objectives are the specific goals that your business will work to achieve over some time. The objectives should, above all, be realistic and attainable, so don’t set unrealistic goals for your business. There should also be metrics that allow you to measure how close you are to your goals, helping you to change your business strategy when needed. 

You should not write a dense A-Z chronological narrative of your business regarding your company’s history. Instead, you should focus on the major milestones of your company and the products and the number of employees.

3# Offer a summary of market research and market potential 

In this section, you will talk about the market for the products you are selling. You should identify a clear demographic in this section, i.e., potential customers who will be interested in your products. The most important characteristics to consider are the location, age, income, gender, and education of your potential customers. If you are starting a business in another country , it can be difficult to do market research, as you might be unfamiliar with the local culture. You can contact a local market research firm and let them help you with this step instead, allowing you to focus on the other aspects of your business. Try to be as precise as possible, as a too broad market will not be very appealing to your investors. 

4# Analyze your competitors

Keep your friends close, your enemies closer. By analyzing your competitors, you will understand what sets your products apart from theirs and their strengths and shortcomings. Such analysis will help your investors see why your products will be the appropriate choice for their problems.

5# Describe your products or services

In this section, you should give a comprehensive look at the features and production steps of your products. The more detailed this section is, the more likely your social entrepreneurship business plan will be successful. You can also include plans for future development to help convince investors.

6# Provide a financial plan 

Even though it is likely that you will not have revenues just yet before your official launch, you should still provide an estimate of all the costs you are expected to spend during the first three years after launch. Such an approach will make it easier for you and the investors to understand the project’s scope. 

Final thoughts

A business plan is very important for the success of a budding social enterprise, so you should spend a significant part of your time writing a good plan. With the right business plan, you will find it much easier to navigate your business to success and to get new investors for your venture.

Jessica Fender is a professional writer and educational blogger at  academicessayassistant.com . Jessica enjoys sharing her ideas to make writing and learning fun.

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Social Enterprise Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Non-Profit Sector

Do you want to start a social enterprise and need to write a plan? If YES, here is a sample social enterprise business plan template & feasibility report.

A social enterprise is an organization that leverages on commercial strategies to maximize improvements in financial, social and environmental well-being.

Social enterprises have both business and social goals. As a result, their social goals are embedded in their objective, which differentiates them from other organizations and corporations.

The major objectives of a social enterprise organization are to promote, encourage, and make social change. This goes to show that there are diverse areas where you can focus on with your social enterprise ideas.

You can actually invest in the Community Housing & Homeless Shelters industry and interestingly, this industry is made up of businesses that offer temporary and emergency shelters, permanent supportive housing, transitional housing , construction and repairs and other.

A Sample Social Enterprise Business Plan Template

1. industry overview.

In the united states, the Social Enterprise Alliance defines a “social enterprise” as “Organizations that address a basic unmet need or solve a social or environmental problem through a market-driven approach.” Interestingly an entrepreneur can focus on starting a transitional housing as a social enterprise.

Transitional housing is temporary housing for certain segments of the homeless population, including working homeless people who are earning too little money to afford long-term housing. Transitional housing is set up to transition residents into permanent, transitional housing.

It is not in an emergency homeless shelter, but usually a room or apartment in a residence with support services. The transitional time can be short, for example one or two years, and in that time the person must file for and get permanent housing and usually some gainful employment or income, even if Social Security or assistance.

Sometimes, the transitional housing residence program charges a room and board fee, maybe 30 percent of an individual’s income, which is sometimes partially or fully refunded after the person procures a permanent place to live in. In the USA, federal funding for transitional housing programs was originally allocated in the McKinney–Vento Homeless Assistance Act of 1986.

Transitional housing business is part of the community housing and homeless shelters industry and this industry provides a variety of community housing services, including:

Short-term emergency shelter for victims of domestic violence, sexual assault or child abuse; temporary residential shelter for the homeless , runaway youths and parents and families caught in medical crises; transitional housing and assisted living for low-income individuals and families; and volunteer construction or repair of low-cost housing.

The Community Housing & Homeless Shelters Industry is indeed a large industry and pretty much active in most developed countries of the world.

Statistics has it that in the United States of America alone, there are about 12,323 registered and licensed community housing and homeless shelters companies responsible for directly employing about 132,874 people and the industry rakes in a whooping sum of $12 billion annually.

The industry is projected to grow at – 0.7 percent annually within 2014 and 2019. It is important to state that no company can boast of having a major market share in the industry.

Some of the factors that encourage entrepreneurs to start their own transitional housing company as a social enterprise organization could be that the business is thriving and profitable, and an aspiring entrepreneur can successfully launch the business if they have a pool of cash.

If you are going into the construction of transitional housing as a social enterprise organization, it is very important to be creative, to be able to use your ideas to meet the rapidly changing needs of the society when it comes to housing and meeting related social needs of your target market.

2. Executive Summary

St. Peter McCain© Transitional Housing , Inc. is a social enterprise and not a charity organization. It is a profit-generating business that serves not just to make money but also to make an impact in the lives of the homeless in the city where we are going to be operating from.

We will have our headquarters in Montgomery – Alabama and will major in the construction of transitional housing so as to provide a variety of community housing services, including:

Short-term emergency shelter for victims of domestic violence, sexual assault or child abuse; temporal residential shelter for the homeless, runaway youths and parents and families caught in medical crises; transitional housing and assisted living for low-income individuals and families; and volunteer construction or repair of low-cost housing.

St. Peter McCain© Transitional Housing, Inc. is going to be a self-administered and a self-managed real estate investment trust (REIT). We will engage in the construction of different transitional homes that will meet the needs of our clients.

We will work towards becoming one of the largest transitional housing construction companies in the United States of America with active presence in major cities.

As part of our plans to make our customers our number one priority and to become one of the leading social enterprise in the United States of America, we have perfected plans to adopt international best practices that can favorably compete with the best in the industry. St. Peter McCain© Transitional Housing, Inc. has overtime perfected plans that will help us to become specialists in our area.

St. Peter McCain© Transitional Housing, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a social enterprise organization, by actively participating in our communities and integrating sustainable social enterprise practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. St. Peter McCain© Transitional Housing, Inc. will be owned majorly by Peter McCain and his immediate family members. Peter McCain has a Degree in Civil Engineering.

He is a property guru that has worked with top community housing companies in the United States of America for many years prior to starting his own social enterprise. Other organizations and investors with same social enterprise ideology whose name cannot be mentioned here for obvious reasons are going to be part of the business.

3. Our Products and Services

St. Peter McCain© Transitional Housing, Inc. is going to offer varieties of services within the scope of the community housing and homeless shelters industry in the United States of America. Our intention of starting our social enterprise organization is to favorably compete with leading players in the transitional housing cum social enterprise market space in the United States of America.

We will be involved in providing;

• Short-term emergency shelter for victims of domestic violence, sexual assault or child abuse
• Temporary residential shelter for homeless, runaway youths and families caught in medical crises
• Transitional and assisted housing for low-income individuals and families
• Volunteer construction or repair of low-cost housing
• Repair of homes for elderly or disabled homeowners as a support service

4. Our Mission and Vision Statement

Our vision as a social enterprise is to become the leading operator in the social economy of Alabama whose main objective is to have a social impact rather than make a profit for our owners and shareholders.

Our mission of starting a social enterprise cum transitional housing construction business is to help victims of domestic violence, sexual assault or child abuse, the homeless, runaway youths, families caught in medical issues and average low – income earning families, own their own transitional housing in and around Montgomery – Alabama.

Our Business Structure

Our organization’s structure is not entirely different from what is obtainable in the community housing and homeless shelters industry. As a matter of priority, we have decided to create a structure that will allow for easy growth for our employees and also, we have created platforms that will enable us attract some of the best hands in the industry.

We are quite aware that the success of any social enterprise lies in the foundation on which the business is built on, which is why we have decided to build our transitional housing construction company on the right business foundation.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.  As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target.

St. Peter McCain© Transitional Housing, Inc. is fully aware of the modus operandi in the community housing and homeless shelters industry, hence adequate provision and competitive packages has been prepared for independent real estate brokers.

Our marketing department will be responsible for managing this aspect of our business structure. Below is the business structure we will build St. Peter McCain© Transitional Housing, Inc. on;

• Chief Executive Officer
• Company’s Lawyer / Secretary

Project Manager

Civil Engineer

Land Surveyor

Admin and HR Manager

• Business Developer / Sales and Marketing

Transitional Housing Officer

• Customer Service Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Company’s Lawyer/Secretary/Legal Counsel

• Responsible for drawing up contracts and other legal documents for the company
• Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial / securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
• Develop company policy and position on legal issues
• Research, anticipate and guard company against legal risks
• Represent company in legal proceedings (administrative boards, court trials et al)
• Play a part in business deals negotiation and take minutes of meetings
• Responsible for analyzing legal documents on behalf of the company
• Prepares annual reports for the company
• Responsible for the planning, management and coordinating all projects on behalf of the company
• Supervise projects
• Ensure compliance during project executions
• Providing advice on the management of projects
• Responsible for carrying out risk assessment
• Using IT systems and software to keep track of people and progress of ongoing projects
• Responsible for overseeing the accounting, costing and billing of every project
• Represent the organization’s interest at various stakeholders’ meetings
• Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.
• Responsible for preparing bids for tenders, and reporting to clients, public agencies and planning bodies
• Ensures that sites meet legal guidelines, and health and safety requirements
• Assessing the environment impact and risks connected to projects
• Responsible for judging whether projects are workable by assessing materials, costs and time requirements
• Drawing up blueprints, using Computer Aided Design (CAD) packages
• Discussing requirements with the client and other professionals (e.g. architects and project managers et al)
• Responsible for managing, directing and monitoring progress during each phase of a project
• Responsible for creating building designs and highly detailed drawings
• Working around constraining factors such as town planning legislation, environmental impact and project budget
• Writing and presenting reports, proposals, applications and contracts
• Adapting plans according to circumstances and resolving any problems that may arise during construction
• Work with project team and management to achieve a common goal
• Responsible for applying for planning permission and advice from governmental new building and legal department.
• Responsible for undertaking land surveys/measurements
• Responsible for presenting data to clients
• Responsible for producing and advising about construction plans and drawings
• Responsible for advising about technical matters and whether the construction plans are viable
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Design job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.
• In charge of inspecting and reporting on the structural attributes of a building
• Responsible for handling reporting on and evaluating the component systems of a building (electrical, fire, roofing and plumbing)
• Assessing compliance with building, electrical, plumbing and fire codes
• Evaluating building plans and permits
• Studying and assessing the soil composition and attributes of where the building is located
• Reviewing and approving plans that meet building codes, local ordinances and zoning regulations
• Issuing violation notices and stop-work orders until building in violation is compliant
• Keeping daily logs, including photographs taken during inspection
• Handle real estate consultancy and advisory services

Marketing and Sales Executive/Business Developer

• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s need s, and communicate with clients
• Finds and qualifies land for development based on company’s land requirements; maintains a land search database; initiates discussions with property owners about the possible sale of property
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managers with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Front Desk/Customer’s Service Officer

• Receives Visitors/clients on behalf of the organization
• Receives parcels/documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distribute mails in the organization
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the line manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s properties that are put – up for sale, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

The fact that transitional housing construction business is a very rewarding business does not mean that there are no challenges in the industry. In order to compete favorably in the community housing and homeless shelters industry as a social enterprise organization we have been able to hire the services of tested and trusted business and HR consultants to help us conduct critical SWOT analysis.

We intend maximizing our strengths, explore all opportunities we will come across, properly manage our weakness and confront our threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of St. Peter McCain© Transitional Housing, Inc.;

Some of the strengths that we will be bringing to the table in the industry is our robust relations with properties investment moguls in the whole of the United States of America. Also, our access to pools of low-income earning families and the homeless who are willing to own their own transitional housing.

Again, we have a team of experts who have cut their teeth in the social enterprise market. Our commission structure and relationship with freelance real estate agents in Montgomery – Alabama and other state in the US will also count towards our advantage.

As a newbie in the transitional housing line of business, we might have some challenges competing with big time social enterprise organizations and other transitional housing construction companies that have been in the industry for many years; that perhaps is part of our weakness.

• Opportunities:

Unemployment usually leads to a decline in income, which makes housing less affordable. A rise in the national unemployment rate will increase demand for community housing services. Conversely, a decrease in the unemployment rate will reduce the number of individuals seeking the services provided by the industry.

The national unemployment rate is expected to decrease in 2019. However, potential economic uncertainty in the near future could contribute to higher unemployment, presenting an opportunity for the industry.

The majority of industry revenue comes from the federal, state and local government-funded homeless and housing assistance programs. Any changes in funding or government policy will drastically affect industry revenue. Federal funding for social services is expected to decrease in 2019, posing a potential threat to the industry.

7. MARKET ANALYSIS

• Market Trends

Housing choice is a response to an extremely complex set of economic, social, and psychological impulses. For example, some households may choose to spend more on housing because they feel they can afford to, while others may not have a choice but to stick to transitional housing via as a way of escaping being homeless.

Market forces, policy decisions, and demographic changes have converged, making it more difficult to increase transitional housing for renters. The US affordable-housing crisis shows no signs of going away anytime soon, and it’s having the unadulterated effects on people with the lowest

So also, with the high rate of people migrating to the United States, it is the norm for them to contract transitional housing construction companies to help them with transitional housing that they intend leasing or renting on a short time basis. In essence, most transitional housing construction companies are targeting migrants and the vulnerable in the society who are likely going to need such properties.

Another obvious trend that is common with transitional housing construction companies in the United States of America is that most of them are improvising on more means of making money in the industry and as matter of fact, they are also acting as property developers and home staging agents.

One thing is certain for every transitional housing construction company; if they are hardworking, creative and proactive, they will always generate enough income to meet all their overhead and operational cost, keep their business going without struggle and make reasonable profits.

8. Our Target Market

As a social enterprise operating in transitional housing market space, our target market cuts across homeless and vulnerable families who are classified as low-income earners. We are coming into the community housing and homeless shelters industry with a business concept that will enable us work with a wide range of clients and make positive social impact in their lives.

Our target market are vulnerable and low – income earning families in the whole of the United States of America and we have put plans in place to recruit freelance agents (brokers) nationally to represent our interest wherever they are located in the United States of America.

Below is a list of the people and organizations that we have specifically designed our services for;

• Victims of domestic violence
• Sexual assault or child abuse victims
• The homeless, runaway youths and parents and families caught in medical crises
•  Low-income individuals and families
• Families who are interested in acquiring/renting a decent and well renovated transitional apartment

Our Competitive Advantage

The availability of competent and reliable real estate professionals under our payroll, our business process, pricing model and social impact packages et al are part of our competitive advantages.

Another possible competitive strategy for winning our competitors in this particular industry is to build a robust clientele base, and ensure that our transitional homes designs are top notch and trendy. Our organization is well positioned, key members of our team are highly reliable and competent and can favorably compete with the some of the best in the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives. We will also engage freelance real estate brokers/agents on a commission level to help us market our services.

9. SALES AND MARKETING STRATEGY

• Sources of Income

St. Peter McCain© Transitional Housing, Inc. is established with the aim of making maximum social impact and of course profits. Although we are a social enterprise in the transitional housing market space, but part of our work force are also licensed real estate agents hence we intend generating additional income from diverse means in the real estate agency.

We have successfully built a vibrant real estate network that covers the whole of the United States of America so as to help us build a profitable social enterprise organization. Below are the sources we intend exploring to generate income for St. Peter McCain© Transitional Housing, Inc.;

• Repair of homes for elderly or disabled homeowners as part of our give back to the community.

10. Sales Forecast

It is a known fact that as long as there are vulnerable people and low – income earning families in the United States of America, there will always be need to for transitional housing construction companies from time to time.

We are well positioned to take on the challenges that are synonymous with social enterprises that operate in the transitional housing market space in the United States, we are quite optimistic that we will meet out set target of generating enough income/profits from the first month or operations and grow the influence of our social enterprise beyond Montgomery – Alabama to other states within record time.

We have been able to examine the social enterprise market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions peculiar to similar start – ups in Montgomery – Alabama;

Below are the sales projections for St. Peter McCain© Transitional Housing, Inc. it is based on the location of our social enterprise and the services we will be offering;

• First Fiscal Year (FY1): $1 million
• Second Fiscal Year (FY2): $2.5 million
• Third Fiscal Year (FY3): $3.5 million

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor offering same services and social impacts as we do within the locations where we have a strong business presence. Please note that the above projection might be lower and at the same time it might be higher since some factors are beyond our control.

• Marketing Strategy and Sales Strategy

We quite mindful of the fact that there are stiff competitions in the transitional housing market in the United States of America, hence we have been able to hire some of the best business developers to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.  The training is not restricted to only our full – time employees but it will also get to our freelance brokers. St. Peter McCain© Transitional Housing, Inc. is set to make use of the following marketing and sales strategies;

• Introduce our social enterprise cum transitional housing construction company by sending introductory letters alongside our brochure to low income earning families, vulnerable families, individuals and other key stake holders throughout the city where our social enterprise organization is located.
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
• Create a basic website for our business so as to give your business an online presence
• Directly market our services
• Join local social enterprise organization associations for industry trends and tips
• Join local chambers of commerce and industry with the aim of marketing our services
• Advertise our social enterprise organization in community – based newspapers, local TV and radio stations
• List our social enterprise on yellow pages’ ads (local directories)
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the transitional housing cum real estate industry by storm which is why we have made provisions for effective publicity and advertisement of our social enterprise organization.

Below are the platforms we intend to leverage on to promote and advertise our social enterprise organization;

• Place adverts on both print and electronic media platforms
• Sponsor relevant TV shows so as to be able to communicate our brand and what we do
• Maximize our company’s website to promote our business
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
• Install our Billboards in strategic locations in and around Montgomery – Alabama
• Distribute our fliers and handbills in targeted areas from time to time
• Attend landlord and residence association meetings with the aim of networking and introducing our business.
• Ensure that all our workers wear our branded shirts and all our vehicles and ambulances are well branded with our company’s logo et al.

12. Our Pricing Strategy

The fact that a social enterprise is not a charity organization but a profit-generating business that serves not just to make money but also to make a social impact, means that we will charge far less than what people in main stream industry will be charging.

We will ensure that we don’t know run at a loss but at the same make relative profits that we can easily leverage on to make maximum impact in our city.

• Payment Options

At St. Peter McCain© Transitional Housing, Inc. our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions.

Real estate deals usually involve huge amount of money. Here are the payment options that St. Peter McCain© Transitional Housing, Inc. will make available to her clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches and we will also pay our freelance sales agents (real estate brokers) with same platforms.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive social enterprise cum transitional housing construction company in Montgomery – Alabama and here are the key areas where we will spend our startup capital;

• The total fee for incorporating the business in The United States of America – $750.
• The budget for permits and license – $2,000
• The cost for hiring business consultant – $2,500.
• The cost for computer software apps (Accounting Software, Payroll Software, CRM Software, real estate software, and QuickBooks Pro et al) – $7,000
• The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
• The cost for acquiring suitable Office facility with enough space in Montgomery – Alabama – $1.5 million.
• The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $150,000
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost of launching our official Website – $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000

Going by the report from the market research and feasibility studies conducted, we will need approximately 2.5 million dollars to successfully set up a small scale but standard social enterprise in the transitional housing market space in the United States of America.

Please note that the salaries of all our staff members for the first month is included in the expenditure and the pool cash needed for the construction of the first set of affordable houses is not part of this financial projection. We will contact our partners to pool cash together when the time comes.

Generating Funds/Startup Capital for St. Peter McCain© Transitional Housing, Inc.

St. Peter McCain© Transitional Housing, Inc. is a social enterprise that will be owned and managed by Peter McCain, his immediate family members and other business partners. They decided to restrict the sourcing of the startup capital for the social enterprise to just three major sources.

• Generate part of the startup capital from personal savings and sale of his stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $1 million (Personal savings $800,000 and soft loan from family members $200,000) and we are at the final stages of obtaining a loan facility of $1.5 million from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business (company), then it won’t be too long before the business closes shop.

One of our major goals of starting St. Peter McCain© Transitional Housing, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to rent / lease / sell our transitional housing services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

St. Peter McCain© Transitional Housing, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring of Office Facility and remodeling the facility in Montgomery – Alabama: Completed
• Conducting Feasibility Studies: Completed
• Generating capital from the CEO/President and Business Partners: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Marketing/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): In Progress

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• Nonprofit Business Plan [Sample Template]
• Nonprofit Thrift Store Business Plan [Sample Template]
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Leonardo's Footprint: From Engineering to Anatomy

The microbiome, another vital organ, openmind books, scientific anniversaries, should the time children spend in front of screens be limited, featured author, latest book, value proposition in social entrepreneurship.

Why do we exist? One person asks another. Silence. What do we want to achieve? They ponder. What value are we trying to create? What problems, needs, goals do we want to help you solve, cover, answer or build?

They look at each other and nodding they murmur asynchronously: What is the heart of our social enterprise?

But the answer to this question, like most important questions in life, although intuitive, might not be easy to pin down, shape or articulate into words. So it needs to be pondered deeply, as we are only able to visualize it in this way.

The value proposition is the ultimate goal, the raison d’être or the telos of our business plan . It is about reflecting on who we want to be and why we want to be like this. Their response will require a deep knowledge of the recipients and will be key to addressing the issues of distribution, communication, partnerships, etc. Now, the value proposition , as the heart of the company, is not static but an organ that breathes and evolves: it adapts to changes in society. So we must define it, true, but not set it in stone. This will allow us to revisit and redefine it in the future.

There is a value proposition in every company, although it acquires special characteristics in the social enterprise. As a company, it camps in new terrain reminiscent of what Pine and Gilmore (1999) call economics of transformation . In this new territory, the qualities of a product, a service or even an experience, however good they may be, are not sufficient. Recipients of the social enterprise are not satisfied with the fact that the value proposition offered can improve their world but demand that they meet a higher purpose: they must contribute to improving the world.

To address the important challenge, we may have to change toolbox or perhaps, as noted by Professor Yunus “use these tools in a timely way” (Noeville, 2011:524). In any case, we consider that the following 10 instruments, in the form of principles, are key:

• Creating a community and social network: the social enterprise has to promote a sense of community, whether physical or virtual. It has to take advantage of and enhance the network effect, at both a cognitive and emotional level.
• Customer focused or customer centric: this involves making a special effort in getting to know customers, recipients, users, or “guests” in order to give them a differential treatment.
• Customization, tuning and individualization: in a globalized world that is increasingly more homogeneous the individualization proposal is particularly relevant. From a more concrete level, customization means adapting to the specificities of customers or their tastes and needs, from a more abstract level, it opens the possibility that the recipient expresses its uniqueness, participating in the design or production process (co-production, co-creation and prosumerism).
• Emotional connection: the recipient of the social enterprise is looking for something more than a mere economic transaction with the supplier. This customer is inspired by human contact and the desire to incorporate those responsible for the social project in its circle of reference or influence.
• Transparency, consistency and integrity: in a world where anonymity is disappearing, the principle of transparency acquires an important social dimension, especially for recipients of the social enterprise. This group likes to be informed, is not easily influenced and places special value on consistency and personal integrity. Tolerant of human mistakes and forgetfulness, these individuals welcome sincere apologies but are relentless with deception and manipulation.
• Sensitivity to the social context and mood: as a result of mobile technology and location aware computing, in the near future it will be possible to know the customer’s immediate geographical and time context. This will require that companies are able to adapt, be flexible and respond to the environment to a great extent. This fact will not only make it advisable to include accurate information on the value proposition circle of life but also be sensitive to the emotional context or general climate in which the social enterprise and the recipient is immersed.
• Flexibility and generosity: flexibility in applying the rules governing the relationship between the company and customer is valued (this is what Trendwatching has called (f)ridig no more) and the generosity of companies (not necessarily understood as free and not necessarily directed to the recipient) as an expression of empathy and sensitivity to the context.
• Balance between futurism and nostalgia: a good value proposition has to adapt to a dual time dimension. It must show some optimism towards the future (room for improvement and learning) but without forgetting the past, an opportunity to connect with affection and identity.
• Distribution of information: this is to help recipients make informed decisions, giving them the choice between different possible alternatives and making them aware of their impact.
• Open value proposition: this involves collaboration between several companies, so that the value proposition is the result of the combination of dialogue and participation between multiple players.

Yet, the social enterprise (when understood in this light) not only makes the entrepreneur become a “social innovator” but offers the recipient the opportunity to participate in social transformation . In other words, it provides them with the opportunity to overcome the consumer’s reductionist acceptance to recover the citizen’s liberating expression as a key player in the already promising economics of happiness.

Guía del emprendedor social de la Universidad Pontificia de Comillas

Noiville, F. (2011). Soy economista y os pido disculpas . Barcelona: Deusto.

Pine, B. J. y Gilmore, J. H. (1999). The Experience Economy. Boston: Harvard Business School Press.

Estela Díaz

Member of the E-SOST research group, Universidad Pontificia de Comillas, Madrid (Spain)

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More about Economy

Geopolitics, global economy, comments on this publication.

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Business plans for social enterprises (SE) and social businesses

Writing a business plan helps to ensure you focus on the core of your business. You must concentrate on key deliverables in a resource-constrained organization and communicate effectively with your stakeholders, including your funders or investors, customers, community, board, employees and volunteers.

The value of social enterprise business planning

Business planning will help any social enterprise (SE) or social purpose business (SPB) to:

• Attract investment
• Identify risks
• Measure social or environmental outcomes
• Demonstrate that you are using a business approach
• Showcase the management team
• Build alliances
• Check thinking
• Determine feasibility

In a business plan, you must clearly articulate:

• The mission of your social enterprise
• The outline of specific actions to achieve your goals and objectives
• Establish targets for planning, measuring and improving performance
• Project the necessary resources, costs and revenues of your program

Sample business plan templates

Many business plan templates exist in the public domain, including this one .

The elements are best used as prompts by social entrepreneurs to build their own plan, assessing along the way whether or not the question (or element) is relevant for the Social Enterprise or the social business.

Social enterprise business plans versus non-profit plans

Description of the business/mission statement.

The social mission and the importance of meeting both the financial and social goals should be discussed in this section.

Management and organization

Financing the capacity of the organization is as important as supporting the programs. Include an assessment of the current organization, planned additions and/or changes as well as the cost of building the team’s capacity in order to achieve the projected growth. Demonstrate that the staff has both programmatic and business skills.

Market assessment and marketing plan

The plan should focus on delivering market-driven products or services as opposed to program-driven products or services to the target customer .

You will also need to articulate how to promote your social objectives along with the product and service.  Partnerships and collaborations extend the reach of the social venture.  Highlight your partnership strategy in this section.

Your marketing plan includes the strategies and tactics to reach your customers, partners and the community.  Outline the public relations, media relations, and advertising that will be required to meet your objectives. The marketing plan should be linked in with your financial plan and your overall strategy.

A solid financial position will allow you to pursue your mission with flexibility and high-quality service, beyond mere stability.  Investors must feel confident their investment will be used effectively to achieve both the social mission and financial results that will enable your organization to thrive and achieve continued growth.

The financial plan provides the framework for social entrepreneurs to forecast the resources they need to create and sustain social and economic value. Commercial entrepreneurs prepare business plans to show why they need money and how they will use it.  Social entrepreneurs should use the same approach and not worry about the limited resources currently available.

Social Enterprise Investors

Investors and funders alike want to know the cost to develop, start up, offer and deliver services or products, whether or not any one user or payer is willing to cover it. When interacting with potential funders or investors, you need a detailed budget and projection of required outside investment tied in with a plan to reach the desired market position.

Investors want returns, typically a blend of financial and social. Your plan must describe the potential “return” on investment for investors and the desired social outcomes, and provide a framework for assessing social performance .

Remember that a social purpose business is similar to any other for-profit business, but the organization will likely raise financing from investors who are interested in a double bottom line. Social enterprises in the non-profit environment will typically raise funding from traditional fundraising, loans and other forms of social finance.

Dees, J.G., Emerson, J., & Economy, P. (2001).  Enterprising Nonprofits: A Toolkit for Social Entrepreneurs . Toronto: John Wiley & Sons.

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I Started Over 300 Companies. Here Are 4 Things I Learned About Scaling a Business. It takes a delicate balance of skill, hard work and instinct to grow a successful business. This serial entrepreneur loves the unique challenge; here are the key lessons she's learned along the way.

By Dr. Christina Rahm Edited by Maria Bailey Jun 26, 2024

Key Takeaways

1. business success is only possible with passion, 2. your mission, vision and value statements are more important than a business plan.

• 3. Hiring is essential to scaling a business — so take it seriously

4. Incentivize for good performances and good attitudes

Opinions expressed by Entrepreneur contributors are their own.

Starting a business requires a delicate balance of risk, passion, intel, research and confidence in yourself. You have to trust your instinct — and rest on the hard work you've done to prepare for business growth . You also have to weigh potential risks against the confidence and belief that you have what it takes to succeed. I know this dance well; I've started over 300 businesses.

I believe business development is my greatest strength. Building businesses is the outlet for my many interests, from humanitarianism to scientific research and design. I've always enjoyed the unique challenges of business leadership , defining a company's "why" and navigating the choppy waters as a company takes off and grows. It's not for everyone, but it's definitely for me. Business ownership is how I do my part to improve the world around me.

With so many businesses under my belt , I've learned much about scaling companies. Here are my top four tips for successful business growth.

Related: 7 Strategies to Scale Your Small Business and Achieve Sustainable Growth

Every business is unique, and learning what works will require trial and error. For every win I've experienced, there's been at least one failure. Every loss is an excellent opportunity to learn — so trust me when I say I've learned a lot.

My businesses continue to grow because my passion for my work has never faltered. Success is rooted in an insatiable desire to make your dreams come true through every hardship and failure you encounter.

I am passionate about producing products that meet the needs of its customers while also contributing to the greater good. That means creating products that support the health of individuals, animals, and the earth, with environmental attention also paid to land, air, and water conservation. And that means creating sustainable solutions that challenge the status quo scientifically and artistically. This is my calling, which drives me to work hard every day.

No successful entrepreneur can stand behind a business they have no passion for. Having the numbers to prove your dream can reap actual monetary value is one thing. But before that, when it's just you against the world, passion is a vital life source for staying afloat.

Each of my many companies shares one mission: to drive positive change and make a difference in people's lives worldwide. Based on the products and services offered and the teams I assembled, I defined each company's vision (how we'll achieve the mission) and values (the factors that drive our decision-making).

Mission, vision and value work are imperative to achieving business success. They allow you to differentiate your businesses from competitors and ensure that the same compass leads your entire team and makes decisions that positively impact the greater team.

It's far easier to know the "why" and figure out the "how" than to understand the "how" and fabricate the "why." When you genuinely care for the mission you're pursuing, you bring creativity when figuring out the "how," encouraging innovation within the process. Your business plan can come later.

Related: Why I Didn't Go on Shark Tank — and How That Decision Actually Helped Me Scale

3. Hiring is essential to scaling a business, so take it seriously.

You can't achieve growth without a team supporting the business, so hiring is essential when scaling. Your employees need to understand your company's philosophy, and you should emphasize the importance of only hiring employees who align with that philosophy. An employee who ignores the company mission is a burden, and filtering those employees out during the hiring process is imperative. I will vouch for a candidate with less experience and more internal alignment with my company's philosophy than the latter. You want to build a team, not a workforce.

I also practice progressive policies for hiring employees with varied backgrounds and am open to second-chance hiring . Look for the right person to fill each role, and don't exclude people with records, disabilities, or unique experiences. An open hiring policy dramatically expands your pool of candidates and gives you a better chance of finding the perfect fit. If you are too set on hiring employees with pristine backgrounds, you are cutting your company short of massive potential. Employees with differing experiences and viewpoints are essential to innovation. Make a character judgment without letting bias hinder your decisions.

Once you have built your team, you must retain that talent. Don't expect that everyone that works for you views their job as their calling. That kind of view is naive and, frankly, egotistical. Incentivize your employees to work their hardest and bring good vibes to the office, then reward them.

I have no problem compensating for good attitudes just as much as I do good performances. Positive attitudes, a can-do outlook, and a sense of urgency work wonders when your team works towards lofty growth goals. And if you comprise your staff of individuals you care for personally and wish to see thrive, then bonuses and incentives should be a joy to hand out. It means you did your job during the interview process.

I even allow employees to bring their kids and animals to work when needed. Not many CEOs take this approach for fear of being viewed as "weak." However, I encourage entrepreneurs to promote inclusivity at the office and to foster a welcoming environment. I'm willing to accommodate my employee's needs because I value their contributions and want them to know that. The traditional workplace setting was designed for a cookie-cutter type of employee, a mold that not everyone can fit. Celebrate diversity among your staff and encourage a work environment that suits everyone.

To successfully scale a business, I've learned that you need to focus on what matters the most: the passion and mission behind the company and the people who make it function. Invest in those things first, then watch as your business grows.

Entrepreneur Leadership Network® Contributor

Founder of DRC Ventures

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NYU and the Aspen Institute Launch Online Resource for NYC Food Entrepreneurs

Open Access NYC portal helps local food entrepreneurs navigate planning, launching, and growing successful businesses

The NYU Food Environment and Policy Research Coalition and Food & Society at the Aspen Institute are launching Open Access NYC , a free portal with local resources to help food entrepreneurs establish and grow their businesses. The digital one-stop-shop provides current and aspiring small business owners with guidance on business planning, securing funding, obtaining permits and licenses, and sustainable growth.

New York City, known for its vibrant and global culinary scene, is home to more than 40,000 food-related businesses —the majority of which are small and independently owned—and the industry supports an estimated half a million jobs . While the food sector is a vital part of the city’s economy, many entrepreneurs experience financial hardship and struggle to navigate the complex regulatory landscape for operating a food business.

Moreover, according to the NYC Mayor’s Office of Food Policy, 79% of the city’s food workers are people of color, including many immigrants—populations that often face barriers to accessing credit and other resources for starting businesses.

“In order to reduce inequalities in nutrition and health, we need to create a more equitable food system,” said Marie Bragg , assistant professor of public health nutrition at the NYU School of Global Public Health and NYU Grossman School of Medicine, director of the NYU Food Environment and Policy Research Coalition, and a 2023 Food & Society Food Leaders Fellow. “Open Access NYC aims to deconstruct historical barriers and advance economic security for New York City’s small business owners in the food sector.”

Open Access NYC is designed to help New Yorkers—including BIPOC entrepreneurs and others from marginalized communities—launch and grow food trucks, restaurants, catering companies, and new food products. The portal directs entrepreneurs to local resources, including loan and grant programs, commercial kitchen spaces, restaurant suppliers, and food-related permits from the NYC Department of Health and Mental Hygiene.

NYU and the Aspen Institute will host a webinar , open to all interested attendees of any background, to launch Open Access NYC on July 9 from 2:30 to 3:30 p.m. ET . Current and aspiring food entrepreneurs can register to learn about the portal’s available resources and are invited to bring questions to a Q+A discussion. 

“As a native New Yorker, I have always had a deep connection to the culturally diverse, independently owned food businesses that surround me,” said Zora Hall, director of community engagement at the NYU Food Environment and Policy Research Coalition. “Throughout the COVID-19 pandemic, I have had to watch a number of my favorite small businesses struggle. I am thrilled to be a part of a timely initiative that has the potential to strengthen existing New York City gems, while ushering in a new generation of small businesses and empowering food entrepreneurs.”

New York is the fourth city to take part in Food & Society’s Open Access initiative, following successful program launches in Washington, DC, Philadelphia, and Baltimore. The Open Access initiative aims to help food entrepreneurs navigate through and over the many challenges to financing and business ownership. With funding from the Robert Wood Johnson Foundation, Food & Society created the open-source web code available at no cost to cities and other organizations to launch portals to help food entrepreneurs in their communities.

“New York City is one of the most diverse cities in the country and is home to some of the most iconic and famous restaurants in the world. We wanted to bring Open Access to New York so that more food entrepreneurs could make their mark on the city," said Corby Kummer, executive director of Food & Society at the Aspen Institute. "It's been a dream working with Marie, one of our Food Leaders Fellows, and her team to launch Open Access NYC. They have exponentially increased the Open Access initiative's potential to support small business owners from marginalized backgrounds, and we couldn't be more thrilled."

About The NYU Food Environment and Policy Research Coalition

The NYU Food Environment and Policy Research Coalition is comprised of faculty, staff members, and students who—through community-based and interdisciplinary research—aim to shape food environments that are health-driven, sustainable, and equitable. The Coalition conducts research that informs policy change on a range of topics to reduce disparities in nutrition and health.

To keep up with the NYU Food Environment and Policy Research Coalition, please visit our website or follow us on LinkedIn and Instagram . 

About the NYU School of Global Public Health

At the NYU School of Global Public Health (NYU GPH), we are preparing the next generation of public health pioneers with the critical thinking skills, acumen, and entrepreneurial approaches necessary to reinvent the public health paradigm. Devoted to employing a nontraditional, interdisciplinary model, NYU GPH aims to improve health worldwide through a unique blend of global public health studies, research, and practice. The School is located in the heart of New York City and extends to NYU's global network on six continents. Innovation is at the core of our ambitious approach, thinking and teaching. For more, visit: publichealth.nyu.edu

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How to Start a Business in Ohio: Your Guide to Being a Buckeye Entrepreneur

By Homebase Team

If you’re dreaming of starting a new business, Ohio might be the perfect place for you to make that dream come true. Ranked by Finfare as the best place to start a business, Ohio is only one of six states with a 0% corporate tax rate (however, you still need to pay payroll taxes ). That’s one reason why the state boasts a 78% first year survival rate and a 53% five year survival rate for new businesses. Business insurance is crucial in protecting a company’s assets and ensuring financial stability.

Ranked seventh among US states in terms of size of economy, Ohio has the third largest manufacturing sector in the nation and nearly $1 billion in state investments in small businesses .

Given its business-friendly policies, diverse workforce, and strong economy, Ohio is a prime location to start a small business. As a business owner, it is essential to ensure compliance with Ohio’s business regulations, including name uniqueness, registered agent designation, and fictitious name registration.

But what goes into starting a business in Ohio? If you’ve got questions, we’ve got answers! Here’s our guide to starting a business in the Buckeye State!

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6 steps for starting a small business in Ohio

If you’ve got a burning desire to start a new business, but you’re not sure where to start, then follow these six steps for starting a small business in Ohio. As a business owner, it is crucial to ensure the uniqueness of your business name, designate a registered agent, and file necessary registrations with the state authorities. Additionally, understanding and complying with business taxes in Ohio is essential for choosing the right legal business structure and staying on top of filing requirements and tax obligations.

Step 1: Solidify your business idea.

If you’re unsure about the kind of small business you want to start, think about the type of activities you find enjoyable, what you excel at, and what you enjoy doing. Consider what your business will do and who you’ll serve. Ideally, your business idea will resonate with your own interests, fulfill a market demand, and have the potential to be profitable.

For example, if you’re an avid home cook but lack the skills to do it professionally, a restaurant might not be the best fit for you. Instead, you could consider establishing a cookware store that caters to other home cooks.

Step 2:  Do your research!

Conducting market research is an essential step when starting any business. Market research will give you valuable insights into the feasibility and profitability of your business.

There are two types of research you can do: primary and secondary. Primary research is collected directly from prospective customers using focus groups, surveys, and/or interviews. Secondary research, on the other hand, gathers key data from external sources such as government census, research reports, and studies conducted by other businesses in your field.

While market research might seem time-consuming and potentially costly, the information it turns up will likely justify the time and expense. Research can validate your business idea in terms of demand and profitability, and it can help you understand your potential customers. 

A rmed with the right insights, you’ll be able to market your business and close sales faster and easier when you understand your customers and how your business can meet their needs.

When starting a business in Ohio, it’s a good idea to focus your market research on your target audience. If you’re targeting a specific city, focus your research on that location. If you’re looking at the state level, compare and contrast research results across the state.

Ultimately, market research will provide a solid foundation for developing your business and help you make smarter business decisions.

Step 3:  Write a business plan.

Once you’ve validated your business idea with market research, the next step is to develop a business plan.

A good business plan outlines your business model, goals, and the steps needed to accomplish them. Despite what many people think, a business plan isn’t only for those seeking funding; refining the business concept, identifying obstacles, and developing a clear understanding of how to attract and convert customers is beneficial to any business at any stage.

A comprehensive business plan will include:

• An executive summary of the business strategy.  
• A company overview that addresses key questions about your business.  
• A market analysis summarizing your market research.  
• A section describing your company mission, goals, and objectives.  
• A description of your products or services.  
• A go-to market strategy detailing your unique selling proposition and promotional tactics.  
• A financial strategy that includes a proposed budget and projected financial statements for five years, as well as any prospective funding needs. 

Step 4:  Finance your business

With a business plan written, it’s time to put it into action. And that likely means finding a way to finance it.

Initial start-up costs can vary from a few thousand to several hundred thousand dollars, with the average cost to launch and operate a small business for the first year being around $40,000.

However, don’t let the costs discourage you! Small businesses have many financing options available to them, some of which are low- or no-cost to obtain. Self-financing or bootstrapping, which involves using personal funds, is certainly one approach. However, this puts all the financial risk on you, which can be challenging if your business needs a lot of capital to get started.

Although competitive, small business grants also offer funding that doesn’t need to be repaid, allowing you to progress further with fewer dollars. However, they can be difficult to obtain. Consider taking small business loans or lines of credit, but keep in mind that you’ll need a thoroughly documented business strategy and personal financial statements when applying.

Be sure to explore Small Business Administration (SBA) loan programs, which provide lower interest rates and extended terms compared to traditional loans.

Step 5:  Conduct an Ohio business entity search.

Your business name is a crucial part of your business, serving as the initial impression of your business. However, before you settle on the name, you’ll need to perform a business entity search for different types of business entities such as LLCs, corporations, and partnerships.  This will determine if a business exists already with an identical name. Visit the Ohio government website to obtain licensing requirements and access checklists for different industry categories. Remember, it’s best to choose a business name that adheres to state regulations to guarantee legal protection and public transparency.

You may also think about using a trade name, which acts as a pseudonym for your business. For instance, you might register your business under the name XYZ Parties, Inc., but your trade name is simply XYZ Parties. To make a positive first impression, you’ll want your business to have a name that’s brief and memorable—and a trade name allows you to do that.

Step 6:  Register your business.

Once you find a name, you’re almost ready to make your dream a reality. Now it’s time to choose a business structure that accurately reflects your preferred tax responsibilities, daily operations, personal risk, and legal obligations.

Here’s a list of common business structures to kickstart your exploration:

Sole Proprietorship: A sole proprietorship combines the identity of the owner and the business. This makes the owner personally liable for business debts, so exercise caution. Partnerships: Ideal for businesses with multiple owners, these require a partnership agreement and offer limited liability for business debts of the LLP.

LLCs: Owned by one or more entities, these limit personal liability for business debts and are relatively straightforward to start. A limited liability company also allows you to elect how to be taxed, potentially minimizing double taxation of income.

C ooperatives: Cooperatives function to benefit their users and span various industries such as healthcare, retail, restaurants, and agriculture.

Corporations: More common in larger companies due to their legal and tax complexities, some small businesses can also benefit from this tax structure.

S Corporations: These operate like a corporation, but the flow-through of income and losses is sent through to shareholders to help you avoid double taxation on corporate income.

Be sure to research each type of business so that you choose the one that best fits for your small business. Consider the taxes you may pay on a federal level (remember, no corporate income tax in Ohio!) and the legal risks you may want to avoid.

Keep in mind that, regardless of the structure, some businesses in Ohio may be required to collect sales tax, with the sales tax rate and oversight of sales and use taxes managed by the Ohio Department of Taxation.

For businesses with employees or specific business structures, you will need to apply for a Federal Tax ID (EIN) through the Internal Revenue Service.

Lastly, always remember to consult a lawyer or accountant to ensure your chosen business structure is optimal for your business.

How to incorporate in Ohio

Owning your own business in Ohio can be a rewarding endeavor, but it requires careful planning and adherence to state regulations. Business registration and licensing requirements can vary across states, and Ohio involves several unique steps. You might need to apply for a trade name and file Articles of Incorporation with the state, depending on your business structure.

Here are the main steps for incorporating a business in Ohio:

• Verify Business License Requirements: Check all registration and licensing requirements with the Ohio Secretary of State to ensure you are complying with all regulations. Consult with relevant local government bodies and industry associations for more specific information and guidance.
• Register Your Business: Register your business with the Ohio Secretary of State, making sure to complete the necessary paperwork and pay any fees associated with your business registration. For detailed checklists and information on different industry categories, visit the Ohio government website.
• Obtain an Employer Identification Number (EIN): Get an EIN from the IRS. This number is crucial for federal tax purposes and is typically required to open a business bank account. Additionally, you’ll need to register your business with the Ohio Department of Taxation to obtain any necessary state tax IDs.
• Acquire Relevant Licenses and Permits: Depending on your business type, you may need to obtain specific licenses and permits from both state and local governments.
• Obtain the Appropriate Insurance: Ohio law requires the purchase of workers’ compensation insurance if you plan to hire employees. Other types of insurance, such as general liability insurance, should also be considered. If you’re unsure about your insurance needs, it’s advisable to consult with a legal expert.

How Homebase can help you start a small business in Ohio

Starting a new small business is no easy feat. If you want to start your business off on the right foot, you need the best small business tools available.

That’s why Homebase provides a comprehensive suite of tools designed to support your business at every phase. As your team grows, enjoy the convenience of effortless scheduling and time tracking. When it’s time to compensate your team, Homebase manages your payroll with just a few clicks, calculating PTO and ensuring you stay compliant and up-to-date with Ohio’s requirements.

Best of all, Homebase integrates with many of the most popular business software, streamlining business operations. Homebase delivers everything a new small business needs and will scale up as your business grows. Give Homebase a try for free!

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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What Must an Entrepreneur Do After Creating a Business Plan?

• October 5, 2022 May 1, 2024

Many successful entrepreneurs started with a solid business plan detailing factors of their business such as marketing, funding, legal considerations, and operations. But then what must an entrepreneur do to turn their vision into reality?

What’s Included in a Business Plan?

A business plan is a formal document that justifies the idea with research, defines the steps to starting the business, and details the growth and management of the business after launch. A strong business plan typically includes:

• Executive Summary and Company Description: Key terms and summary of the business and its goals.
• Market Research and Analysis: The findings of market research and projection of success in the target market.
• Marketing and Sales: A strategy to optimize the business for the market, based on market research analysis: Who is the target audience? What products and strategies should be the focus for sales? The likely includes the go-to-market strategy for pre-launch and launch as well as sales operations and infrastructure.
• Organization and Management: A plan for the organization of departments and management, as well as the number of employees needed. Includes budgeting for salaries and benefits, as applicable.
• Financial Projections and Funding Requests: The projected revenue of the company versus costs, as well as any plans for necessary funding like investments.

What Are the Steps to Take After the Business Plan?

1. Build the Initial Team

Few entrepreneurs can manage every aspect of a new business alone. They should focus on what they can do well and delegate other tasks to a strong team. For example, that might mean hiring a web designer or financial consultant.

2. File Necessary Legal Documents

To legally protect a business and make sure taxes are in order, it’s necessary to file proper forms with the IRS and other applicable governing bodies. Some business owners may choose to form a limited liability company (LLC) , while others may incorporate their business. Choosing the right business structure requires quite a bit of thought and should be completed in the business plan.

3. Protect Intellectual Property

Without proper legal protection, business owners have no formal recourse if someone else uses their designs or branding. Understanding the differences between trademarking, copyrighting , and patenting is critical, as each protects different types of intellectual property . For example, trademarking can protect branding assets, copyrighting can protect creative content such as books, and patents can protect product design. Ideally, this step would be completed prior to any launch.

4. Advertising and Marketing

Part of the business plan is a go-to-market strategy, which includes pre-launch, launch, and, often, post-launch marketing plans. Once the business is legally established and the initial intellectual property has been protected, it’s time to implement the pre-launch marketing. This may include social media marketing, the establishment of a blog, or more traditional print marketing such as fliers. The goal? Get the word out to your prospective customers so they can buy at launch.

5. Official Business Launch

This is an exciting time for any entrepreneur—the moment their hard work takes center stage and their product goes public for purchase. Ideally, the necessary production and marketing stay on the launch schedule established in the business plan. Many business owners start tracking marketing and sales data immediately so they can pivot quickly if something isn’t working properly.

6. Review Business Performance and Progress

Many business owners benefit from frequent reviews of their sales and marketing data. For a younger business, it’s common to conduct monthly or quarterly reviews to adjust quickly. As the business matures, frequency may decrease to annual reviews with smaller quarterly reports. Either way, setting goals and metrics based on the business plan keeps a business on track and focused.

The Next Step: Scaling the Business

With the initial business plan implemented successfully, business owners often ask themselves what comes next. Plans for growth and scaling the business may have been outlined in the initial plan, but have the plans changed? Possibly, which is why consistently measuring performance and aligning goals is critical.

Often, the end of the initial business plan is just the beginning of an entrepreneur’s journey. Understanding how to legally protect the business you’re building is key to keeping momentum and stability as you grow from launch to scaling.

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The long shadow of entrepreneurship: why you should start succession planning now.

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Robert Balentine is Chairman of Balentine and author of First Generation Wealth .

As an entrepreneur who advises other business owners and wealth creators, I understand the many barriers to succession planning. It begins with your own mortality—which no one wants to confront—and is complicated by ego. How can you even think about this business, this thing that you have poured your heart and soul into creating, without you? For some, it’s also about wealth. Perhaps you think about the money you’ll leave on the table.

Over the years, I’ve occasionally come across a business owner who just can’t make the transition. Let’s call them the lifestyle leader—the person who is in it for the cash flow, and who can’t see their way to reinvesting in the business any more than they can see another name on the letterhead. The lifestyle leader is likely to sell the firm and move on, and there’s nothing wrong with that.

On the other hand, there’s the leader with the growth mindset. They're a leader who is always building the team around them to propel their business faster and further. This can be a much more satisfying season of business ownership, but it’s not inexpensive. They stop every once in a while and think, maybe it would be easier to cut expenses and maintain.

Whether you are the growth mindset or the lifestyle leader, you likely know that, in reality, there’s no such thing as the status quo in business. If you are not growing, you are dying. If you are not investing, you will be outdone by competitors and your customers will ultimately leave you. Building a company that can sustain itself in the future requires investment in time and planning, particularly when it comes to the leader who will carry your business into the future.

Best High-Yield Savings Accounts Of 2024

Best 5% interest savings accounts of 2024, creating value for your business.

Succession planning creates value for your company. Here’s how:

• Employees have the peace of mind knowing that there’s a plan for the future, and if you’re choosing a successor from inside the business, you’ll show them that there’s a ladder to success within the company.

• You’ll signal to clients that your company is built to last. Naming a leader to carry the company into the future tells your customers that you are looking beyond your own time horizon.

• There is perceived value in a deep bench of leadership that can be sustained beyond your transition away from the business. If you decide to sell, a strong leadership team will show that your business is worth more than the name on the door.

• You’ll continue to shape the trajectory of your company. Your successor likely wants your insights, ideas and advice. After all, you built the company into what it is today. One caution here: Keep your ego in check and remember that the new leader will have their own insights and ideas—after all, that’s one of the reasons you have chosen them to lead.

Fostering Resilience For Yourself And Your Company

When I decided to formally name my successor a couple of years before he ascended to CEO, it was as though a weight was lifted from my shoulders. Being the CEO is a heavy backpack, and knowing that our current CEO and our current president would be working in the business gave me the chance to step back and work on the business. The distinction is subtle but important, and remaining on board as Chairman has allowed me to view the business from a different perspective.

Continuity beyond the founder is important to creating resiliency within your business, too. “Key man life insurance”—a financial windfall that would accompany your unexpected demise—can only go so far in sustaining your company.

Choosing Your Successor

If you’re in a service business, you know that human capital is the most valuable asset you have. And if you’re headed into succession planning without a strong internal candidate, you will likely realize that you’re looking at a lopsided balance sheet when it comes to leadership.

Unless your business is distressed and in need of a turnaround, an internal candidate could offer you the best short- and long-term outcomes. Internal candidates are typically cheered by your people as a known entity who has climbed the ranks and received the award.

External candidates have a harder time winning the trust and confidence of the internal team, but at times, there are compelling reasons to hire outside. If this is the case, look for someone who is both a strategic and a cultural fit. Particularly when you are transitioning away as founder, the culture shock of someone who is misaligned when it comes to what you and your team have come to value can be too much to overcome.

Giving Yourself Peace Of Mind

It’s my experience that the happiest founders I have known and advised upon their exit are those who have a management team in place that they have selected, and who give them the comfort that the company will continue beyond them.

That’s the truest definition of legacy—looking back on your life with satisfaction, knowing that you have created something bigger than you could have imagined and recognizing that you have created value in the world.

On the other hand, I’ve met many a control freak who is miserable in retirement, with nothing to retire “to” and only the past which they are retiring “from.”

Your Business Is Your Legacy

If you take just one thing away from this article, I hope what you will hear is that not only is succession planning just one more way to pour your heart and soul into your business, but it is actually the best gift you can give yourself and future generations.

It takes a new mindset, something along the lines of, “How can I think about this business if it won’t endure beyond me?”

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

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Meet the Gen Xers and boomers retiring with 6 figures of student debt that threatens their Social Security and savings

• BI spoke to Gen X and boomer student-loan borrowers nearing retirement with six figures in debt.
• The student loans have prevented each of them from saving sufficiently for retirement.
• It's part of a larger retirement crisis and could put Social Security benefits at risk.

Diane Shelton, 58, has been working as a clinical psychologist for over 25 years — but her student loans are still in the six figures .

Shelton's debt load is something of a double-edged sword.

"There's just no doubt the value of the education and the value and the intrinsic richness that I have from the work that I've done," she said. But that's coupled with a heavy loan burden, complicated bureaucracy, and the interest it's accruing.

"I've taken forbearances at times when I really couldn't afford my mortgage. I had to pick and choose," she said. Even now, with a stable and well-paying career, her debt is still impacting her economic trajectory.

The situation is a bit different for Larry, 75, who requested his last name be withheld for privacy. He's staring down a $208,000 balance that he took out in the late 1990s to help his kids go to school. While they took out federal student loans for themselves, Larry wanted to ensure their options weren't limited. So he took out parent PLUS loans — a type of federal loan that allows a parent to cover up to the full cost of attendance for their kid's education. It has the highest interest rate of all federal loans.

Larry consolidated the four PLUS loans in 2007 with an original principal of nearly $160,000, but due to periods of unemployment, his loans went on forbearance, during which interest grew and surged the balance. Now, Larry is working full-time in retail sales, and while he hopes to retire in a few years, he knows he'll be taking his six-figure student-debt load with him.

"We have savings, which is probably about a 10th of what it should be," Larry said. "This is just hanging over our heads mentally. I think it affects me a lot because I probably think about it every day because I can't help but think about it. It's really very frustrating, very embarrassing, and just not fair."

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Shelton and Larry aren't alone: As Gen Xers and boomers age into retirement, they're bringing student loans with them. It's part of a looming retirement crisis that could put even more seniors in a financially precarious position — and potentially without full Social Security benefits to back them up.

"I'm making a decent salary now, but there's all of this price that I've paid in terms of not being able to save for retirement," Shelton said.

The retirement student debt crisis

Both Shelton and Larry are facing a particular aspect of the retirement crisis: hoping to throw in the towel while sitting on mountains of student loan debt . Over a million American ages 55 to 64 are either holding student loans or have spouses holding loans, according to a report from the New School's Schwartz Center for Economic Policy Analysis . Those loan holders said that, on average, they expect to take 11 years to repay their debts — but it can oftentimes end up being much longer due to interest and financial hardship.

Among Americans holding student loan debt, Gen Xers and boomers have the highest median balance, although only a small percentage of those 55-64 — around 13% — and those 65-74 — around 5% — hold educational installment loans.

Just the other day, Shelton was checking what her Social Security check would look like at different retirement ages, since the program incentivizes waiting to collect checks.

"If I work until I'm 70, that's where I've got the most amount. But that's still going to be tight when a quarter of that is a student loan payment," Shelton said. "It stresses me to no end."

Interest is a key reason many older adults find themselves struggling to pay off their student loans for decades. Since Larry could not afford to make payments for a period of time due to financial hardship, the 6.25% interest rate caused his balance to grow larger than what he originally borrowed. It's an issue other PLUS borrowers have previously told BI — while they took out loans to give their children the best shot at a successful future, they didn't know at the time that doing so would leave them with balances they could not afford to pay off.

"We surely would've saved more than what we tried to do," Larry said. "And because of those payments, we pretty much have not saved a lot, other than my wife's retirement fund."

And while many older Americans rely on Social Security to get by in their later years, it's a benefit that's particularly imperiled for student loan borrowers. That's because if the borrower defaults on their payments, the government has the power to seize Social Security benefits and wages until the borrower can fulfill their student-loan obligations again. It's a practice some Democratic lawmakers, including Sen. Elizabeth Warren, have called to end .

"The idea of just not paying it — well, now I understand they can garnish your Social Security, and so it just feels like there's no way out," Shelton said. "And so I'm probably going to work until I can't work anymore."

Are you worried about student loan debt impacting your ability to retire? Contact these reporters at [email protected] and [email protected] .

Watch: Supreme Court strikes down Biden's student-debt relief plan

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