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8 Ways to Ensure Your Social Enterprise Can Make Ends Meet

8 Ways to Ensure Your Social Enterprise Can Make Ends Meet

When starting a Social Enterprise, you will have to juggle many competing priorities. One that should always be at the top of the agenda is ensuring that at the very least, you are creating enough income from the enterprise to cover the costs of running it…or making both ends meet.

Here are eight things to consider to keep your social enterprise on track:

1. Ensure you have an entrepreneurial mindset.

As the person leading your social enterprise, you’ll want to ensure that you adopt the traits of the most successful entrepreneurs from all walks of the business world; these characteristics include:

  • Being fearless
  • Being prepared to take risks
  • Being action-orientated
  • Not being phased by temporary failures
  • Being persistent, optimistic and resourceful

Your mindset will impact everything that you do, and it will largely determine the success that you’re able to create for your social enterprise. This includes being able to attract the necessary income to your venture.

2. Know your social enterprise’s story.

Stories create an easy way for people to buy into both you and your social enterprise. What is the story behind why you got into this business? For many social entrepreneurs, this often happens when they discover an ugly truth about society – something they find so shocking, disturbing, or unacceptable that they have to do something about it.

For example, Andy Bradley, who grew up watching his parents lovingly run a home care facility, set up Frameworks 4 Change after later working in the National Health Service and discovering that not all nurses were as compassionate as his mother had been. With an ambition to change the culture of nursing entirely, he set about devising a training course teaching a series of habits nurses can adopt to make sure they are always compassionate, regardless of how busy they are.

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Sharing your story allows those who are interested in your social enterprise to connect with you and your mission, which is a crucial ingredient in keeping your enterprise going strong.

3. Don’t prioritize your social aim over business viability.

In his Feb 2014 article, Dan Zasatwany stated that the principle of “income must come before impact” was not necessarily being implemented amongst the majority of social entrepreneurs, citing that there was “a lack of widespread understanding in the sector about what it means to be an ‘enterprise.’”

One of the main things to understand about a social enterprise is that, first and foremost, it’s a business. Although it may exist to fulfill a social aim, it will only be able to do that in proportion to the profits that it generates.

Having a passion to make a difference is not enough to make a social enterprise successful. In order make ends meet, you must first ensure that, particularly in the early days, your focus is on creating a viable, standalone business model that can survive long enough to make your social aim a reality.

4. Do the business basics and create a business plan.

Remember, first and foremost your social enterprise is a business. As such, you need to ensure that you’ve carried out the same steps that someone setting up a traditional business would do. Although you don’t want to suffer analysis paralysis and spend too much time in the planning phase, some basic groundwork is necessary to ensure that you are going into a venture that has a realistic chance of creating a profit. Some key areas to include in your business plan are:

  • Research: What’s already happening in the industry that you want to go into? What will be unique about what you are going to do or how you’re going to do it? Who is actually spending money on the products or services that you are going to be selling?
  • Financial Forecast: Based on your research, how much will you charge for your products and services, and how much can you reasonably expect to sell over a specific time frame? Be comfortable with the idea that you are trying to create a profit. Don’t let your passion for your social aim see you practically giving things away, including your time.
  • The Break Even Point: If you intend to make your living with this social enterprise, how much do you need to sell in order to cover both your business costs and your basic living expenses? Knowing your daily, weekly and monthly break-even point will give you a great focus in the early days of your social enterprise, and is a crucial part in making sure you can pay the bills on time. This article provides some useful tips on how to calculate your break even point.

5. Know and understand your target audience.

Being clear on your niche audience – that specific group of people who are going to be paying for your products and services – allows you to market to them more effectively, and to ensure that you’re meeting their needs. This, in turn, will allow you to make a bigger impact on your social aim.

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Be aware, of course, that with a social enterprise, often the people who are going to be paying for your products and services are not the same people who are going to be using your products and services. Your message needs to be effective with the people who provide the cash to make your enterprise possible.

Marketing, branding and innovation expert Rafe Offer emphasizes that you need to understand your customer by really getting to know what it’s like to be them, and he suggests role-playing with them in their environment to achieve this. He also encourages a marketing approach that is focused on making them feel good.

Getting this area of your social enterprise right will mean repeat business from customers that can become raving fans, which ultimately will be an important part of creating the income that will not only make ends meet, but will create more social impact for your business.

6. Have a scalable system for success.

Following the collapse of his own social enterprise, Matthew Cain identified that one of the features of successful start-ups was that they had a replicable system that was first tested and proven on a small scale. Once a successful system of trading has been established, it’s then scaled up to increase turnover and profits. Cain found that waiting to launch an enterprise with big numbers was one of the top five reasons that social enterprises fail to make both ends meet. You can read about the other four reasons here.

Scaling up – also referred to as ‘social franchising’ – is a model that is becoming popular amongst social businesses that borrows from the experience of the commercial franchising sector. A social enterprise that has done this successfully is Care and Share Associates (CASA)who have duplicated their system of employee-owned social care homes and services to several sites around the UK.

Social reform organization The Shaftesbury Partnership compiled a useful report on social franchising in 2011 that you can access here.

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7. Measure your impact.

As part of what he calls his BIB (Business Impact Brand) method for starting a social enterprise, Marquis Cabrera talks about the importance of being able to measure the impact that you intend to, or have already made.

For example, he cites that Sword and Plough, a social enterprise that re-purposes military surplus waste into fashionable bags and accessories, has a social mission to “empower veteran employment, reduce waste and strengthen shared military-civil understanding.” At the time of his article, Sword and Plough reported that so far they had

  • recycled 15,000 lbs of military waste
  • created $400,000 of sales through the sale of 2600 products (with 10% of profits going back to veteran initiatives)
  • created 36 jobs for military veterans.

How could you state the impact of your social enterprise today? Measuring your impact will not only make it clearer for other people to connect and contribute to what you are doing, but will force you to look at the numbers in your social enterprise. Tracking your numbers is vital for making sure you are not spending more than you are creating in income.

8. Don’t go it alone.

Being an entrepreneur in any business can be a lonely affair, particularly if you are working from home. However, as a social entrepreneur, you may find this to be even more true as the pressing weight of fulfilling your social mission is added to the feelings of isolation that many traditional entrepreneurs experience.

Therefore, it’s important that you focus on building up a network of people who buy into your social aim and share your vision. One of the ways to do this early on is to put together a Board of Governors to give you objective assistance in ensuring that your enterprise is achieving its social aim, fulfilling its mission statement and is on track to meet its financial goals and targets.

Other important relationships to cultivate are

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  • Mentors
  • Advisors
  • Champions
  • High profile contacts within your online and offline networks

Attending business networking groups can be a great place to create these relationships if they don’t exist already. Your Board of Governors will be an important part of keeping you on track financially.

Social entrepreneur, presenter and consultant Phil Tulba is a Trustee and Director of Adrenaline Alley, an award winning social enterprise. He offers these closing words of advice to social enterprises seeking to make ends meet in their venture:

“Always make sure you are as close as you can be to your customers, beneficiaries and stakeholders. Losing sight of where you have come from, your market and your mission could result in disaster, and it’s sometimes not an easy line to walk.”

Featured photo credit: Jarmoluk via pixabay.com

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Last Updated on December 2, 2019

How to Develop Mental Toughness And Stay Strong

How to Develop Mental Toughness And Stay Strong

Are you the kind of person who wants to achieve massive success in your life? Do you have the mental toughness to make that happen?

I think we can all agree that no matter your ambitions, achieving success can be difficult; and over time, the daily grind can take a toll on your physical, mental, and emotional energy.

Achievers and high performers from all walks of life face ups and downs along the path to success—they face failure, burnout, discouragement, fatigue, self-limiting beliefs, stress, and so much more.

How do some people continually strive towards their personal goals year after year while others give up on them? How do those people stay strong and persevere when there is so much stacked against them?

Studies now show that mental strength is a critical key to success. If you haven’t read Angela Duckworth’s book Grit, you should. In it, she shows that “the secret to outstanding achievement is not talent but a special blend of passion and persistence she calls ‘grit.’” In other words, mental toughness plays a significant role when it comes to achieving goals.

Sometimes, our goals wear us down and leave us feeling exhausted. Other times, our goals get difficult, and success seems impossible, so we lose hope, become discouraged, and want to quit.

At its core, mental toughness is simply the ability to stick to something when the going gets tough. People with high levels of mental toughness can push beyond these obstacles and forge a path towards success while those with lower levels of mental toughness may abandon their dreams.

Want to know the good news?

No matter who you are, what you’ve been told, or what you currently believe, you can develop the mental toughness you need to be successful.

All you need to do is learn to develop a positive mindset, focus on your why, and utilize the people around you for support.

1. Develop a Positive Mindset

If you’re going to increase your mental toughness, the first thing you have to do is focus on building a strong, positive mindset.

According to the Cleveland Clinic, the average person has 60,000 thoughts per day. Of those, 95% of those thoughts repeat each day and, on average, 80% of repeated ideas are negative.[1]

That’s roughly 45,600 negative thoughts per day!

Carrying around these negative thoughts is like going on a hike in the mountains with a backpack full of rocks. The hike is hard enough on its own, but having extra junk weighing you down is a recipe for failure.

Sometimes, building mental toughness isn’t as much about building new strength as it is about saving your strength for the right tasks. Wouldn’t it be easier to dump the rocks out of the backpack instead of trying to get strong enough to carry the extra weight?

Absolutely!

But how can we learn to spot those 45,600 negative thoughts and get rid of them? How can we empty our metaphorical backpack?

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Well, it gets a whole lot easier if you know what you’re looking for. Some of the most prominent types of negative thoughts are self-limiting beliefs, all-or-nothing thinking, and dwelling.

Let Go of Self-Limiting Beliefs

It’s pretty hard to be mentally tough when you’re constantly beating yourself up. Self-limiting beliefs are any beliefs that hold you back in some way. Here are some examples:

“I’m not smart enough to…”

“I don’t have enough experience to…”

“I’ve tried that before, and it didn’t go well, so I must just be bad at…”

When we allow these self-limiting beliefs to flood our minds, negative self-talk runs rampant, and we crowd out our ability to think positively. We’re effectively working against ourselves.

If you want to keep your mind strong on your path to success, you have to overcome the self-limiting beliefs that are holding you back by realizing one key truth: self-limiting beliefs are thoughts, not facts.

When you recognize a self-limiting belief cropping up in your mind, quickly silence it by telling yourself that it’s not true and then back that up with some positive affirmations:

  • “I am smart enough; I may just need to do some more research first.”
  • “I may not have as much experience as someone else, but that’s not going to stop me from trying. I have enough experience to get started. I’ll figure the rest out on the way.”
  • “Just because I failed at this last time doesn’t mean I’m going to fail this time. My past does not dictate my future.”

Get Rid of the All-or-Nothing Thinking

Another form of negative thinking that could be preventing you from building mental toughness is all-or-nothing thinking.

All-or-nothing thinking is the concept of thinking in extremes. You are either a success or a failure. Your performance was totally good or totally awful. If you’re not perfect, then you’re a failure.

But this isn’t true!

If you’re trying to lose 30 pounds and only lost 28, isn’t that still better than not losing any weight at all? I’d say so!

If you allow all-or-nothing thinking to rule your mind, you’ll be on cloud nine when you succeed, but you’ll beat yourself up when you “fail.” Acknowledging the shades of gray in between will allow you to see success more often and it will help you celebrate your smaller wins.

When you recognize an all-or-nothing thought, remember to look for the positive in the situation. What did you gain by trying? What would you have missed out on had you not tried? Could you do better if you were to try again?

Ditch the Dwelling

Self-Limiting Beliefs and All-or-Nothing Thinking can lead to a bad case of dwelling on the negative. If you want to build some mental toughness and keep your mind strong, you have to ditch the dwelling.

Every day, bad things happen to each of us, and while there’s nothing we can do to prevent that, we can control how we react to these situations.

When we dwell on our misfortunes, we waste massive amounts of energy that we could be using to achieve our goals. When this happens, we’re more likely to quit altogether.

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But that doesn’t mean you’re not mentally tough; it just means you’re misusing your energy.

The next time something bad happens, it’s important to allow yourself to feel the disappointment and frustration, but work on reducing the amount of time you dwell on the situation.

Easier said than done, right? Try these:

  1. Call a friend or mentor and talk it through with them. Get some outside perspective on your situation.
  2. Time block your dwelling by allowing yourself to dwell for no more than one hour.
  3. Then, tell yourself to move on, that you’re human, and you’re allowed to make mistakes or experience setbacks.
  4. If all else fails, find a good way to distract yourself until you can calm down and reexamine things with a clear mind.

The faster you can focus on the positives and move past the problem, the quicker you can get back to achieving success in your life.

Be Patient about the Process

No matter which negative thoughts tend to run around your mind, working to replace them with positive thoughts can take time.

Learning to spot self-limiting beliefs, all-or-nothing thinking, or dwelling is one thing, but learning to quiet those thoughts is another thing entirely.

If at first you don’t succeed, don’t fret. Instead, take a deep breath and try again. As you work towards improving your mindfulness and your mental toughness, remember that you’re going to get better with time.

To make things a little easier, it helps to connect with your purpose.

2. Connect with Your Purpose

One of the most critical elements to building mental toughness and keeping a strong and focused mind is having a strong ‘why’ for everything you want to do.

If you set out to achieve a huge goal that you don’t have a ‘why’ for, you’re going to find yourself distracted, discouraged, or disengaged as soon as you experience your first setback.

Think about the last time you were working on a goal or resolution and things weren’t going well, maybe you even wanted to quit. Perhaps you thought you didn’t have enough willpower. Maybe you told yourself that you didn’t have enough discipline.

Here’s the truth: you just didn’t have a strong enough why.

Simon Sinek has been spreading his message “Start with Why” across the globe.[2] In short, he says that:

“Your ‘why’ is the purpose, cause or belief that inspires you.”

One of the biggest drains on your mental energy is pursuing a goal or a task that you don’t have a ‘why’ for. This is when we tend to look for external motivation or question our willpower, but those aren’t the issues.

Often, we set goals because we like the idea of the goal, not the reality of the goal. Without connecting to our why, we can’t intrinsically motivate ourselves to achieve our most challenging goals.

Find Intrinsic Motivation

Intrinsic motivation is our innate desire to do something and it comes when we work towards something that satisfies ourselves above all else—not our parents or our bosses or our teachers.

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Let’s say you think you want to quit smoking because you know it’s bad for you, but you really enjoy smoking. If you don’t truly want to quit smoking, it’s going to be nearly impossible, regardless of your willpower or mental toughness.

But if you want to quit smoking because you just had a baby, and you don’t want your baby growing up around smoke, then that ‘why’ is going to give you intrinsic motivation. Intrinsic motivation is far more powerful than sheer stubborn willpower, and it’s far easier to maintain over the long haul.

If you’re trying to develop mental toughness, connecting a why to everything you want to achieve will reduce the effort and energy it will take to achieve those things. Once you’ve found a strong why for all of your goals, you’ll find that you’ll have significantly more energy to pursue your more difficult challenges.

3. Find Strength in Unity

The final aspect of developing mental toughness is embracing the idea that you’re not in this alone. It’s a fact, anyone who’s ever achieved success in anything didn’t do so alone.

Bill Gates didn’t build Microsoft alone. Oprah didn’t build her network by herself. Steve Jobs didn’t invent the iPhone without a team. Michelle Obama didn’t implement the “Let’s Move” campaign on her own.

Behind all of these successful people were countless other people who were there offering support, mentorship, guidance, and encouragement.

If you want to develop unmatched mental toughness, you need to understand that you don’t have to go it alone. Even the toughest Navy Seals have a team backing them up.

If you want to stay strong in your endeavors, you need to build a team of supporters who will step in and back you up when it counts.

Find a Mentor or Committee of Mentors

The benefits of having a great mentor are far too many to list, but to boil it down to the basics, a mentor is someone who will help show you the path to success.

A good mentor will help you discover your greatest strengths, spot and overcome your blind spots, and work through your weaknesses.

If you’re struggling to deal with your internal negativity or with finding your purpose, talk it through with a mentor. Sometimes we lose the forest for the trees, and a mentor can help us take a step back and see the bigger picture.

Here’s how to find the right mentor for yourself: How to Find a Mentor That Will Help You Succeed

Recruit Some Cheerleaders

If you want to stay strong, it never hurts to have a group of personal cheerleaders. Unlike mentors who are going to jump in and help you address your problems, a group of cheerleaders will help keep your spirits up.

Even if you have a strong ‘why’ and a positive mindset, it’s nearly impossible to maintain a positive attitude 100% of the time. It doesn’t make you weak to need some help from time to time. Having a group of people cheering you on will make all the difference in the world.

As you work towards your goals, tell a few close friends about what you’re doing, and when things get tough, tell them about it. And when they give you the pep talk you need, don’t resist their positivity or counter it with your self-limiting beliefs or your all-or-nothing attitude.

Allow their optimism to refill your energy and use that energy to press on.

Form an Accountability Group

Cheerleaders are great, but sometimes we need someone to give us the kick we need to keep going. You might have a strong ‘why’ for running a marathon or losing 30 pounds, but that doesn’t mean it’s going to be easy; and trying to force yourself to follow through is a sure way to tax your mental energy.

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Why not save some of your mental energy by forming an accountability group?

Find a person or a few people who have similar goals, or at the very least, the need for an accountability partner. Then, form an agreement within the group to push each other every day.

Even if your goals aren’t the same, accountability partners are great for giving us the push we need when we need it most.

Regardless of which relationships you choose, sometimes we have to be able to work through things on our own. Mentors, cheerleaders, and accountability partners are a great way for us to combat our naturally negative mindsets, but occasionally we have to be able to pick ourselves back up.

4. Learn to Pick Yourself Back Up After Setbacks

Building a strong mindset and developing mental toughness isn’t easy! Anyone who’s ever achieved massive success knows that obstacles, setbacks, and failure are inevitable, and you’re no different.

As you work on your goals, you’re going to face many ups and downs, but this doesn’t mean that you don’t have mental toughness, willpower, or discipline.

We all struggle. We all fail. It’s what we decide to do after we fail that truly counts.

When you find yourself in a low spot, ask yourself these questions:

  • “Am I being too hard on myself?”
  • “Are negative thoughts such as Self-Limiting Beliefs or All-or-Nothing Thinking distorting my view?”
  • “What’s the positive side of this setback/obstacle/failure?”
  • “Why was this goal important to me? What was my purpose?”
  • “Is this goal still important to me? Do I still have a ‘why’?”
  • “Who can I ask for help? Who can mentor me or cheer me on? Who can help hold me accountable?”

Asking yourself these questions is a great way to check in on your mindset. When we get lost in negative thinking or lose connection to our purpose, it’s far too easy to become discouraged. When we feel discouraged, we start feeling weak, maybe even a little hopeless.

Also, this article provides some useful tips to help you get back on track: How to Deal with Failure and Pick Yourself Back Up

Tying it All Together

Are you still with me? I know I’ve thrown a lot at you, from developing a positive mindset and combatting your internal voice to connecting with purpose and building a committee of mentors. It’s a lot to take it!

But here’s the bottom line:

A crucial part of developing mental toughness is learning to recognize these tendencies and taking action to correct them early on. Developing mental toughness is not about eliminating weakness, but learning how to deal with it and overcome it.

No one is perfect, but when we focus on the right things, we can develop a mental toughness worthy of life’s biggest challenges.

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Featured photo credit: Zulmaury Saavedra via unsplash.com

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