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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 10, 2020

15 Simple Things You Can Do To Turn Your Life Around

15 Simple Things You Can Do To Turn Your Life Around

Life can be difficult. It can seem like nothing goes your way and the world is against you. The world can be a very cruel and lonely place. But there are things that you can do to begin turning your life around.

Whether you’re in a job you hate, struggling with a loss, or just not on the path you expected, only you hold the key to turning your life around. Here are 15 simple things you can do to turn your life around.

1. Read Daily

Reading lets you escape to a different place within your mind. It can be relaxing and calming. And it helps stimulate brain activity and keeps you sharp.

Reading daily can help you spend time away from the problems of the day and allow you to escape into a world of endless possibilities. Changing your perspective can help you turn around your life, and reading is a great place to start.

Here’re some recommendations: 20 All-Time Best Motivational Books to Inspire You

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2. Put Your Goals in Writing

When thoughts are banging around in our heads, they can easily slip away. Walk from one room to another and you forget what you were doing!

Make sure your goals are concrete and written down. This will help you stay accountable to yourself and is the first step in completing your goal. By writing it on a piece of paper, you must put in the thought of how you should word it, what exactly you want to accomplish, and will make you consider if it’s truly worth it.

3. Prune Your Relationships

Too often, relationships can be destructive. This is often looked at through the scope of romantic relationships, but also consider life-long friends, family, and acquaintances. Are the people you spend time with bringing you down? Are they helping you achieve your goals or hindering? It can be difficult, but pruning your relationships can be the quickest catalyst in turning your life around.

4. Make New Friends

Don’t underestimate how a new person or group of friends in your life can change your outlook. Be open to meeting new people, both at work and in your personal life.

5. Get Healthy

When you feel great, good things seem to come your way. Working out helps you feel better about yourself and can help change your outlook on life. Eating right can help you have the energy to do more. Getting healthy can improve your entire outlook on life and help turn your life around.

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6. Start Saving

For many, financial struggle can weigh heavy and be the cause of many problems. Without a change of job or career, changing your financial situation will take time and effort. Start saving with each paycheck to help build toward your future. Even if it’s a small amount each check, consistency in saving can help you change your path in the future.

7. Start a Business

Working for others can be tough. You may be underemployed, under-utilized, and under-appreciated. Starting a business can help you take control of your financial future.

Understand that you don’t have to quit your current job to start a business. Find something you love and have skills at and do it in your free time. If you’re in creative services, freelance. If you’re great at carpentry, build tables to sell. If you are a talented painter or crafty, start an Etsy store.

You may find that your side passion business can turn into more. Or, if you have the opportunity and skills, take the plunge and go all in. Working for yourself is challenging, but a great opportunity to change your life.

Here’re some tips for you: How to Start a Small Business with Little to No Money

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8. Find Opportunities to Help Others

Helping others can change your outlook and help turn your life around. Changing the way you think about the world can play a part. But helping others can also open up doors you never had available. Being a good person can help you get out of a funk and can be the catalyst for change.

9. Learn a New Skill

When you have more skills, additional opportunities will be presented. If you’re tired of your blue collar job, take classes to learn computer skills. If you’re struggling to move up in your company, find a skill that makes you more valuable. And if you want financial freedom, learn a skill that can help you change your life. Knowledge is power.

10. Stop Watching TV

Watching TV can keep you distracted and take up a lot of time. Cutting out the time you spend watching TV and replacing it with more productive activities can help you accomplish more and stay focused.

11. Listen to Inspirational Content

You can learn much about yourself from others. Find inspirational and educational content that matches your needs and give it a listen. You may find that the advice from others in similar situations can give you the boost you need to change your life.

12. Stop Complaining

Negative thoughts and talk can turn people against you and make your outlook grim. Stop complaining so much and make the best out of your situation.

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13. Find or Rekindle Your Passion

Doing what you love can change your entire outlook on life. When you’re doing things you hate, you can be more stressed and make life much harder than it needs to be. Find things you’re passionate about and rekindle the love for what you enjoyed in the past. Doing what you love can turn your life around and make each day more rewarding.

14. Take a Vacation (or Staycation)

Sometimes, hitting the reset button is all it takes to improve your situation. Taking a vacation, or staycation, is a great way to get away from the stress of the daily grind and recharge your battery. A vacation can give you the perspective you need to change your life.

15. Re-evaluate Your Attitude

How you view the world will often reflect in how you treat yourself. Re-evaluate your attitude and ensure that you’re doing all you can to make the most out of every situation. A change in how you view your situation can often be the push that helps you change your life for the better.

More Tips to Help You Change Your Life

Featured photo credit: Conner Ching via unsplash.com

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