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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 20, 2019

26 Useful Things to Learn Now That Will Change Your Life

26 Useful Things to Learn Now That Will Change Your Life

If you pay attention to your everyday life careful enough, you’ll know that you can learn from everything and everyone you come across. Our life is basically full of useful lessons that we should learn.

Here are 26 useful things to learn that Abhishek A. Singh shared on Quora. Let’s see how these life theories would lead you to live a different life.

1. Primacy and recency: People mostly remember the first and last things that occurred, barely the middle.

When scheduling an interview, ask the employer the time slots they do interviews and try to be the first or the last.

2. If you work in a bar or in customer service of any kind, put a mirror behind you at the counter.

In this way, angry customers who approach you will have to see themselves in the mirror behind you and the chance of them behaving irrationally will be lowered significantly.

3. Once you make a sales pitch, don’t say anything else.

This works in sales, but it can also be applied in other ways.

My previous boss was training me and just gave me pointers. I was working at a gym trying to sell memberships. He told me that once I got all the small talk out of the way and presented the prices, the first person to talk would lose.

It didn’t seem like a big deal but it actually worked. Often there were long periods of awkward silence as the person tried to come up with some excuses, but usually they bought.

4. If you ask someone a question and they only partially answer, just wait.

If you stay silent and keep eye contact, they will usually continue to talk.

5. Chew gum when you’re approaching a situation that would make you nervous, like public speaking or bungee jumping.

When we eat, our brain tell ourselves, “I would not be eating if I were danger. So I’m not in danger.” This has helped me to stay calm.

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6. People will always remember how you made them feel, not what you said.

Also, most people like talking about themselves; so ask lots of questions about them.

7. When you’re learning something new, teach it to a friend. Let them ask you questions about it.

If you’re able to teach something well, you will be sure that you’ve understood it very well.

8. If you get yourself to be really happy and excited to see other people, they will react the same to you.

It doesn’t always happen the first time, but it will definitely happen the next time.

9. The physical effects of stress — breathing rate and heart rate — are almost identical to the physical effects of courage.

When you’re feeling stressed in any situations, immediately reframe it : Your body is getting ready to be courageous, you are NOT stressed.

10. Pay attention to people’s feet.

If you approach two people in the middle of a conversation, and they only turn their torsos and not their feet, they don’t want you to join in the conversation.

Similarly, if you are in a conversation with a coworker who you think is paying attention to you and their torso is turned towards you but their feet are facing in another direction, they want the conversation to end.

11. Confidence is more important than knowledge.

Don’t be intimidated by anyone, everyone is playing a role and wearing a mask.

12. If you pretend to be something for long enough, you will eventually become it.

Fake it till you make it. Period.

13. Not to be creepy, but if you want to stare at someone unashamedly, look directly past them and wait for them to try and meet your eyes.

When they fail to do that, they’ll look around (usually nervously for a second) they won’t look at you again for some time. This is your chance to straight up stare at this person for at least 45 seconds.

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And as suggested by Brian Stutzman:

If you’re staring at someone and get caught, DON’T turn your head or your body to look away, because that just confirms that you were staring.

Just move your EYEBALLS off the person. Unlike turning your head, it’s instantaneous. And the person will think you were just looking at something behind them and that they were mistaken for thinking you were staring. Do it confidently, and ignore any reaction from the person, and you can sell it every single time.

After a second, you can even look back at them with a “Why are you staring at me?” look on your face to really cement the deal!

14. Build a network.

Become the information source, and let the information be yours. Even grabbing a beer with a former colleague once a year will keep you in the loop at the old office.

Former coworkers might have gotten a new position in that office you always wanted to work in, great! Go to them for a beer, and ask about the office. It’s all about connections and information.

15. If you are angry at the person in front of you driving like a grandmother…

Pretend it is your grandmother, it will significantly reduce your road rage.

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    16. Stand up straight.

    No slouching, hands out of pockets, and head held up high. It’s not just a cliche — you literally feel better and people around you feel more confident in you.

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    17. Avoid saying “I think,” and “I believe” unless absolutely necessary.

    These are phrases that do not evoke confidence, and will literally do you no good.

    18. When feeling anxious, clean up your home or work space.

    You will feel happier and more accomplished than before.

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      19. Always buy the first pitcher or round of drinks.

      You’d be surprised how long you could drink on the phrase “I bought the first one.”

      20. Going into an interview… be interested in your interviewers.

      If you focus on learning about them, you’ll seem to be more interesting and dynamic. (Again, people love to talk about themselves.)

      21. Pay attention parents! Always give your kid a choice that makes them think they are in control.

      For instance, when I want my son to put his shoes on I will say ,”do you want to put your star wars shoes on or your shark shoes on?”

      Pro-tip: In some cases, this works on adults.

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        22. Your action affects your attitude more than your attitude affects your action.

        As my former teacher said “You can jump and dance FOR joy, but you can also jump and dance yourself joyful.”

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        23. When a group of people laugh, people will instinctively look at the person they feel closest to in that group.

        Notice who you look at and who look at you when you laugh with a group of people!

        24. If you want to build rapport or gain someone’s trust quickly, match their body posture and position.

        If someone is sitting with her legs crossed, cross your legs. If they’re leaning away from you, lean away from them. If they’re leaning towards you, lean towards them.

        Mirroring and matching body position is a subconscious way to tell if someone trusts you or is comfortable with you. If you’re sitting with your arms crossed and you notice someone else is sitting with her arms crossed, that is a good indicator that you have/are successfully built/building rapport with that person.

        25. The Benjamin Franklin Effect (suggested by Matt Miller)

        I find the basis of the Benjamin Franklin effect is very useful and extends far beyond pencil borrowing. This knowledge is useful in the world of flirting too.

        Asking a girl in your class if you can borrow a pencil or her notes or to explain the homework will make her more likely to like you than if you let her borrow your stuff or are the one to help her. Even just asking a girl to buy you drinks (facetiously) leaves a much bigger impression than offering to or actually buying a girl a drink.

        The best part is it kills 3 birds with one stone: you get the advantages of the favor itself, the person subconsciously likes you more, and it makes them more open to future favors and conversation.

        26. Handle panic and anxiety behaviors by tapping fingers (Suggested by Jade Barbee)

        When you’re feeling stressed, worried or angry, tap each finger tip while thinking (or speaking quietly) a few specific words about what is bothering you. Repeat the same words while tapping each of your 10 fingers, including thumbs.

        For example, tap while saying, “I’m so angry with her…” Doing so will likely take the charge out of the feeling and return you to a more resourceful (better feeling) state of being. It’s called EFT (Emotional Freedom Technique) or “tapping,” and it is useful in many life situations – emotional sadness, physical pain, food cravings, traumatic memories…

        Featured photo credit: Nicole Wolf via unsplash.com

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