Financial viability is a key concern for many social enterprises, and identifying sustainable sources of social entrepreneurship funding is critical to success. Some social enterprises set a goal of being self-funding by at least breaking even at the end of each year.
However, since most new businesses lose money in the first few years, it’s essential to plan ahead to ensure adequate funding even in for-profit models. Securing funding requires a detailed business plan as the basis for grant and loan requests, but also to provide guidance to stay on track during the startup phase.
Financial demand and social goals should both be incorporated into your business model from the start, and your financial success should be dependent on your achievement of social goals. Once you establish a successful track record it should be easier to secure funding via partnerships other community organizations and businesses as well.
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