ARE YOU READY FOR A ARE YOU READY FOR A SOCIAL ENTERPISE? SOCIAL ENTERPISE? May 1, 2009 May 1, 2009 9 AM - - 12 PM 12 PM 9 AM 1
Agenda ___________________________________________________________________ ARE YOU READY FOR A SOCIAL ENTERPRISE? • Welcome & Introductions • Social Enterprise Review • Your Core Competencies • Engaging Your Constituents • Questions & Closing Remarks 2
Section I ______________________________________________________________________ SOCIAL ENTERPRISE REVIEW SOCIAL ENTERPRISE REVIEW 3
A Brief Review _______________________________________________________________________ Earned Income Earned Income Earned income can come from revenues generated from the sale of products and/or services, or a strategic alliance between a for- profit company and a not-for-profit. 4
The Opportunity ____________________________________________________________________________________ Convergence of SE and SR Social Responsibility Sustainability Social Enterprise Corporations Not-for- and profits Businesses “The potential for cross-fertilization between social enterprise and mainstream business is huge – it’s utterly revolutionary.” ~ Sara Olsen, Social Venture Technology Group 5
Private Investors (equity funds) have billions to invest in ventures that create market-based solutions to social problems. If the social sector doesn’t create these businesses, the “for profits” will! 6
It is perfectly legal to earn a profit… ____________________________________________________________________________________ • …as a nonprofit corporation • …as a for-profit subsidiary of a nonprofit • …as a for-profit that donates its net earnings AS LONG AS THE PROFITS GO BACK TO THE NONPROFIT ENTITY TO SUPPORT THE MISSION 7
Top 5 Missions ____________________________________________________________________________________ • 1 st : Workforce Development • 2 nd : Housing • 3 rd : Community & Econ. Development • 4 th Education • 5 th Health Source: Social Enterprise Alliance 2009 Study 8
Top 5 Social Enterprise Venture Types _____________________________________________________________________ 1 st : Education and Training 2 nd : Retail/Thrift Shop 3 rd : Consulting Services 4 th : Food Services/Catering 5 th : Art Venture 9
The Ideal Earned Income Venture __________________________________________________________________________________ • Related to the mission • Responding to a genuine need in the market • Builds on strengths & assets – core competencies • Energizes staff, Board, senior managers, and other stakeholders • Makes enough money to be worth it 10
11 OR COMMENTS? OR COMMENTS? QUESTIONS QUESTIONS
Section II __________________________________________________________________________________ Discovering Your Core Competencies 12
Getting Started __________________________________________________________________________________ 1. Evaluate existing earned income strategies and determine if opportunity exists to grow revenue. 2. Identify assets, core competencies, capabilities and constituencies. 3. Decide criteria/create your “case” and communications plan 13
With Whom? __________________________________________________________________________________ • Professional Peers • Board discussion • Staff discussion • Business Advisory Committee 14
Do you have to start a new business? The answer is NO … __________________________________________________________________________________ � First look at existing services, programs, and customers… � Some can generate $ without changing them substantially or creating a business. � This is easier to do and has a greater probability of success! 15
Starting a New Business IS an option… _________________________________________________________________________________ • After you have looked at your existing services and products • After you’ve already had success in running income generating activities…OR… • If it fits with your core competencies • If you have the time and the resources to fully research and obtain the necessary expertise, equipment, etc. 16
Opportunities for new businesses/services/products New Service or Product Existing Service or Product New Service diversification or Product market Existing Service development or Product service/product (new service/product... development new markets) Risk market penetration (new customers for existing services) (new services, (more business products for existing with current customers) customer groups) Current or Past New Users / Buyers Users / Buyers Risk increases as you move away from your core competencies and traditional customer groups . 17
Core Competencies ____________________________________________________________________________________ • What you know and what you are known for….what you do best. • Difficult for others to imitate, due to your unique experiences, track record, or other key opportunities. • May be more obvious and valued by others than by you. • Can be leveraged to provide services to new customers/clients or add features to existing services. 18
Core Competencies ________________________________________________________________________ What are your core competencies � From your perspective? What are your core competencies � From the community stakeholder or outsider perspective? 19
Worksheet #1 Core Competencies What business(es) are you in? Where is your expertise? What you know and what you are known for….what do you do best…what services are successful, unique to your organization? What do you think your stakeholders would mention? What do you think your core competencies are? How can you find out if what they think is what you think? How will you check your reality? Who can you talk with to confirm or find out others you may not have thought were core competencies? 20
What are YOUR Human Assets (Worksheet #2 ) _____________________________________________________________________________________ • What does each staff person bring to the organization: � Skills � Expertise � Experience or background? • Include the entire staff…Many have many an interesting past that is useful in pursuing earned income ideas, even if they are not using it in their current job! 21
What are YOUR Physical Assets (Worksheet #3) __________________________________________________________________________________ • What infrastructure do you have: � Buildings: layout, location � Equipment, furniture � IT and financial infrastructure 22
Current Services & Products (Worksheet #4) _______________________________________________________________________ 1. Inventory all current services and products 2. Describe the current “customer” or “user” for each 23
Worksheet #4 Product/Service/Business Matrix Relate Current Product or Service To… Current Target Markets/Customers/Users 24
25 WHAT ARE YOU LEARNING? Questions? Uh oh! Ah ha!
Section III __________________________________________________________________________________ Engaging Your Constituents 26
Staff, Board, Community Partners, Clients ______________________________________________________________________ 1. Create staff planning team. 2. Create Business Advisory Committee. Be “Tom Sawyer”… Talk to all to obtain input and support. 27
MYTHS & SUPERSTITIONS _________________________________________________________________________________ • People who want to work in the nonprofit world should not care about being paid well • Charities should not take risks and should not make mistakes • Charities are not supposed to build for the future-money raised should be spent immediately • No one should seek to earn a profit in charity • Charities should maintain low "overhead". Spending on such things as training, marketing, staff support, research and development is inappropriate. Source- Uncharitable : How Restraints on Nonprofits Undermine Their Potential 28
Communicating is Key _______________________________________________________________________ • Create your “case” for developing an earned income strategy— – Why it makes sense – What others have done – What problem it solves – What you are doing to ensure that it will forward your organization’s mission 29
Building Your Case - Examples _________________________________________________________________________________ • “ Replace” revenue from federal/state programs or fill the increasing gaps. • Reduce dependence on “soft money”. • Fund a growing or new demand for services. • Develop new services or products. • Have control over our future. 30
31 1. Driving Forces (your Case) Worksheet #5 Four Parts 4. Community Impact 2. Mission 3. Money
Define Mission Related Goals _______________________________________________________________________ • What do you hope you will achieve, 2-3 goals, that furthers your mission through this earned income focus? • Be specific…. • How will you communicate/describe this to stakeholders? What words should or should not be, used? 32
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