ARE YOU READY FOR A ARE YOU READY FOR A SOCIAL ENTERPISE? SOCIAL - - PowerPoint PPT Presentation

1

ARE YOU READY FOR A ARE YOU READY FOR A SOCIAL ENTERPISE? SOCIAL ENTERPISE?

May 1, 2009 May 1, 2009 9 AM 9 AM -

• 12 PM

12 PM

2

Agenda

___________________________________________________________________

ARE YOU READY FOR A SOCIAL ENTERPRISE?

• Welcome & Introductions
• Social Enterprise Review
• Your Core Competencies
• Engaging Your Constituents
• Questions & Closing Remarks

3

Section I

______________________________________________________________________

SOCIAL ENTERPRISE REVIEW SOCIAL ENTERPRISE REVIEW

4

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.

5

Not-for- profits Corporations and Businesses

Sustainability Social Responsibility

The Opportunity

____________________________________________________________________________________

Convergence of SE and SR

“The potential for cross-fertilization between social enterprise and mainstream business is huge – it’s utterly revolutionary.” ~ Sara Olsen, Social Venture Technology Group

Social Enterprise

6

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!

7

• …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

It is perfectly legal to earn a profit…

____________________________________________________________________________________

8

• 1st: Workforce Development
• 2nd: Housing
• 3rd: Community & Econ. Development
• 4th Education
• 5th Health

Source: Social Enterprise Alliance 2009 Study

Top 5 Missions

____________________________________________________________________________________

9

Top 5 Social Enterprise Venture Types

_____________________________________________________________________

1st: Education and Training 2nd: Retail/Thrift Shop 3rd: Consulting Services 4th: Food Services/Catering 5th: Art Venture

10

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

11

QUESTIONS QUESTIONS OR COMMENTS? OR COMMENTS?

12

Section II

__________________________________________________________________________________

Discovering Your Core Competencies

13

• 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

Getting Started

__________________________________________________________________________________

14

• Professional Peers
• Board discussion
• Staff discussion
• Business Advisory Committee

With Whom?

__________________________________________________________________________________

15

• 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!

Do you have to start a new business? The answer is NO…

__________________________________________________________________________________

16

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.

17 market development

(new customers for existing services)

market penetration

(more business with current customers)

service/product development

(new services, products for existing customer groups)

New Service

• r Product

Existing Service

• r Product

Risk increases as you move away from your core competencies and traditional customer groups .

Opportunities for new businesses/services/products

New Service

• r Product

Existing Service

• r Product

New Users / Buyers Current or Past Users / Buyers diversification

(new service/product... new markets)

Risk

18

• 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

• pportunities.
• 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.

Core Competencies

____________________________________________________________________________________

19

What are your core competencies

From your perspective?

What are your core competencies

From the community stakeholder or

• utsider perspective?

Core Competencies

________________________________________________________________________

20

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

• thers you may not have thought were core competencies?

Worksheet #1 Core Competencies

21

• What does each staff person bring to the
• rganization:

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!

What are YOUR Human Assets

(Worksheet #2)

_____________________________________________________________________________________

22

• What infrastructure do you have:

Buildings: layout, location Equipment, furniture IT and financial infrastructure

What are YOUR Physical Assets

(Worksheet #3)

__________________________________________________________________________________

23

Current Services & Products

(Worksheet #4)

_______________________________________________________________________

1. Inventory all current services and products 2. Describe the current “customer” or “user” for each

24

Relate Current Product or Service To… Current Target Markets/Customers/Users Worksheet #4 Product/Service/Business Matrix

25

WHAT ARE YOU LEARNING?

Ah ha! Uh oh! Questions?

26

Section III

__________________________________________________________________________________

Engaging Your Constituents

27

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.

28

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

29

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

30

Building Your Case - Examples

_________________________________________________________________________________

• “Replace” revenue from federal/state programs
• r 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.

31

• 1. Driving Forces (your Case)
• 2. Mission
• 3. Money
• 4. Community Impact

Worksheet #5 Four Parts

32

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?

33

Define Money Related Goals

_______________________________________________________________________________

• What do you hope you will achieve, what are

the top 2-3 goals that makes it “worth it” for you?

• Be specific…..Measurable!!
• How will you communicate/describe this to

stakeholders? What words should or should not be, used?

34

How will YOUR community be better off? What should they see as “success”?

___________________________________________________________________________________

• What would the community stakeholders

want the goals to be, 2-3 goals, that furthers your missions and helps the community?

• What words would they use?
• Success is….

35

……Enables You to Develop your Decision Criteria

(Worksheet #6)

_________________________________________________________________________________

Mission Screening Criteria for Earned Income Ideas 1. 2. 3. 4. 5. Financial Screening Criteria for Earned Income Ideas 1. 2. 3. 4. 5.

36

• List key stakeholders.
• What will get “buy in” for each group?

Consider their biases, hot buttons, “worries” What should you stress in your communication?

• How and when will we communicate with

them throughout this process?

Worksheet #7: Communication & Involvement of Stakeholders

37

The Business Advisory Committee

_______________________________________________________________________________

• Identify who can help you as “experts” on a

business advisory committee.

• Board members, other leaders from your

community...especially those in similar businesses.

• People with market research, marketing,

entrepreneurial experience, etc.

• Include a “devil’s advocate” or two.
• Who would be good on this????

38

The Role of The Business Advisory Committee

(Handout)

_______________________________________________________________________________

• It’s a a limited commitment.
• They only meet at key “gates” or decision

points in the process.

• They advise as to whether the idea seems

feasible, needs more research, should have a different focus or market, or should be dropped.

• The Business Planning Team attends these

meetings.

39

BEGIN YOUR LIST!

Worksheet #8 Recruitment Plan for BAC

40

Keys to Success: Readiness Recap

____________________________________________________________________

• Use your “Beginner’s Mind”
• Know your Core Competencies
• Review & refine your products and services
• Build your Case
• Identify and engage all stakeholders

41

QUESTIONS ? CLOSING COMMENTS?

See you June 5, 2009 9 AM – 12 PM for Market Research!