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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 August 7, 2018

14 Powerful Leadership Traits That All Great Leaders Have

14 Powerful Leadership Traits That All Great Leaders Have

Being a leader of a company or organization is certainly a difficult and often frustrating position – but it can also be tremendously rewarding.

Whether you’re just starting out as a leader, or have been leading for a while, you’ll be sure to benefit from knowing the essential traits that all great leaders possess.

Effective and successful leaders transcend the title of ‘manager’ or ‘boss’. They’ve found a way to achieve the perfect combination of charisma, enthusiasm and self-assurance (with a healthy dose of luck and timing probably added to the mix).

It may seem like some people are gifted with leadership skills, but the truth is most leadership traits can be learned, adopted, and strengthened with time and practice.

As we delve into the list of effective leadership traits, you will learn the behaviors and attitudes of a good leader.

The 14 most important leadership traits

Please read through the list of leadership qualities carefully. Take note of which of the traits you excel at – and which ones you need to work at.

Traits for better self-development

1. Vision and mission

Having a clear picture of what needs to be achieved is a crucial quality of good leadership.

This vision is often communicated in a mission statement, such as this one from Starbucks:

    How to develop vision? Spend time pinpointing what you need to achieve, and then plan the steps to get there. Here’s a complete guide on creating your own vision.

    2. Self-motivated

    It’s no coincidence that successful leaders have an abundance of self-motivation.

    Without a decent level of self-motivation, you’ll struggle to become a strong and respected leader. However, if you don’t have a lot of self-motivation right now, don’t despair.

    One of the secrets is to have definite goals to keep you motivated at all times. Some people also choose to reward themselves every time they achieve a goal, and this is certainly a good way to keep yourself enthused and motivated. Learn how to set an ambitious yet achievable goal here.

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    3. Optimism and positivity

    Positive energy is contagious. Great leaders are overflowing with this type of energy.

    Not only does a positive mindset make leaders easy to work with, but it also gives them a constant source of inspiration and ideas.

    Tap into this energy by aligning yourself with positive people and positive goals. Find out more about the habits of positive people here.

    4. Emotional stability

    In leadership positions, frustration and stress are daily occurrences. This is why leaders need to have strong and stable emotions. They can’t allow themselves to be easily knocked off track.

    If you’re prone to losing your emotional stability when stressed or frustrated, try some of these techniques: breath deeply and slowly for 30 seconds, go for a walk, drink some water (instead of tea or coffee), turn your focus onto something you can resolve. Here’re some effective ways to control your emotions.

    5. Self-confidence

    Watch a presentation by any CEO and you’ll see that even if they’re not natural presenters – they make up for this by having powerful self-confidence.

    It’s not just CEOs who have self-confidence, any successful leader will have this trait in abundance. One reason for this, is that only a confident person can persuade others and gain their respect.

    Worried that you have low self-confidence? Try faking it. Psychologists often recommend that if you ‘act’ at being confident, you’ll start to look, sound and feel like you ARE confident. And in time… you will be.

    If you look for more ways to boost your self-confidence, this confidence coach has got you some nice advice:

    How to Be Confident: 62 Proven Ways to Build Self-Confidence

    6. Decisiveness

    Leaders are frequently called upon to make decisions (some leaders may have to make dozens of decisions every day). In fact, you could say that making decisions is one of the key things a leader must do.

    Spend some time observing highly-successful leaders and you’ll see that they are quick to make decisions. They also enjoy making decisions, rather than stressing out like many non-leaders do when they’re asked to decide on something.

    Put yourself in the leadership bracket by developing your decision-making skills. Start with small decisions – and then work your way up to bigger and more difficult decisions. Once other people notice your decision-making prowess, they’ll automatically see you as leadership material.

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    I know it’s really quite difficult to make the right decisions sometimes, but don’t worry, here’s a guide for you:

    How To Make Good Decisions All The Time

    7. Passion and enthusiasm

    Expressive. Active. Energetic. These are words best describe a passionate leader.

    Great leaders are lively, driven and are possessed with zeal and purpose. It’s this passion that helps them achieve big results. If you want to emulate their success, then you need to develop passion and enthusiasm for the work at hand, and the end goals.

    Take a look at this Passion Pyramid to find out how importance a leader’s passion is to the team:

      One way to do this is to find what motivates you, and keep your focus firmly on that. For example, i f you’re motivated by helping others, then make sure your role and company are both suited to realizing this. If you’re motivated by money, then put your focus on achieving bonuses and pay rises.

      Take a look at Leo Babauta’s guide on how to find your passion.

      8. Accountability and responsibility

      Exceptional leaders know that at all times they’ll need to take responsibility for tasks and their results. This includes things likes individual and team performance, as well as being accountable for when things go wrong.

      When negative things occur (and you can guarantee they will from time-to-time), a great leader will immediately step in and take responsibility. Initially, they’ll try to resolve the problem in as quick and smooth a way as possible. But if this is not feasible, they’ll be sure to say that the buck stops with them – and they take full responsibility for what has happened.

      To develop your leadership skills, you must never shy away from responsibility or accountability. If you prefer to sweep mistakes under the carpet, then you’re demonstrating non-leadership traits. Try owning up to issues and finding solutions to them. By doing this, you’ll immediately gain people’s respect.

      Find out some tips on how to be a more responsible person here.

      9. Focus

      Distractions are everywhere. And it takes major focus to stay committed to tasks and goals. The best leaders understand this, and therefore, they’re always looking at ways to boost their team’s focus.

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      One way leaders do this, is to keep their team intensely focused on the bigger picture. This might entail allocating specific time for tasks and eliminating any non-essential work.

      If you’re easily knocked off track, you’ll need to spend some time boosting your focus. Try planning your day, week, month and year to help ensure that you don’t fall behind with achieving your goals. Check out the 7 strategies of staying super focus recommended by a productivity coach.

      10. Ever-learning

      Leaders know that to be successful they need to continually update their skills and knowledge. They deliberately learn all they can about their profession and industry, so they’ll able to make confident and assured decisions.

      Why is ever learning so important? I’ll leave it to you to find out the reason here:

      If I Am Living a Good Life, Why Should I Bother Learning New Stuff?

      Imagine a CEO of a solar power company. His company may have amazing solar panels, but when it comes to discussing business with potential buyers, if the CEO or his sales team show a lack of understanding about the solar industry and future trends, etc., they’ll be unlikely to win any business.

      It’s exactly the same for you. If you’re a team leader at an electronics store, you should make sure you fully understand all the products that you offer. But go beyond just that, and read about upcoming products and trends that might change what customers are interesting in buying in the future.

      Traits for effective communication

      11. Empathy

      The best leaders understand the feeling of their team members, customers and associates. They know when to praise, and when to discuss problems (usually in private).

      Without empathy, leaders will be seen as cold, harsh and lacking understanding. They’re also likely to be regarded as untrustworthy.

      One way to ‘put yourself in someone else’s shoes’ is to have regular informal discussions with your colleagues. When you do this, you’ll quickly learn their fears and desires. And when you understand why they have these – you’ll be in a position to express empathy. You can also learn to be more sensitive to others’ needs by taking up these communication skills.

      12. Persuasive and influential

      Communications are at the heart of all transactions. Whether it’s pitching for a sale or resolving a customer complaint, how you communicate will determine the outcome.

      Charismatic leaders such as Richard Branson (Virgin) and Mark Zuckerberg (Facebook) are confident and persuasive communicators. They know how to win over audiences and leave a lasting impressing in people’s minds.

      There’re some common barriers that you’ll have to overcome in order to communicate effectively:

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      How to learn effective communication? You could join the world-renowned U.S. nonprofit Toastmasters International. They’ve been training people in the art of public speaking since 1924, and members have included Napoleon Hill, author of Think and Grow Rich, and Star Trek actor Leonard Nimoy.

      If you don’t have time to join a club, then practice your communications skills at home. You can do this in front of a mirror, or even better, video yourself presenting, and then ask some friends and family members for feedback. You’ll be amazed at what they pick up on.

      Traits for ensuring an engaging team

      13. Team building

      If you put a bunch of random people together, you may have a loose definition of a team. In reality, a real team has purpose, drive – and a leader lighting the way.

      If you’ve worked in different teams and with different managers, you’ll no doubt have come to this conclusion:

      Managers who treat their team members like children are unpopular with the team. Conversely, managers who treat their team members like adults, are respected and well-liked by the team.

      The days of disciplinarian managers are passed. Nowadays, successful team leaders know how to inspire and motivate their team, while keeping a harmonious atmosphere between all team members.

      14. Fostering creativity

      Solutions to problems are rarely black and white. Often it takes a leader who can ‘think outside the box’ to come up with answers. In other words, a leader must be creative, and also help to foster creativity and innovation throughout their team.

      Creativity is not only associated with pursuits such as arts, literature and music, running a team can be just as creative. There will be times every day when you need to come up with ideas and give guidelines for your team to come up with theirs to solve problems.

      Leadership is a journey of continuous learning

      Leadership is an amazing experience that will take you on roads you’ve never traveled before.

      Begin now to build your skills and experience, pick out the traits that you currently lack – and then work on developing those.

      It will take tons of practice and time before becoming an effective leader but eventually you will join the ranks of great leaders.

      Featured photo credit: unsplash via unsplash.com

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