Tips For Writing a Social Entrepreneurship Business Plan
The process of creating a social entrepreneurship business plan for a new social enterprise is somewhat different from what it is for existing enterprises. Established social enterprises have a track record and historic information to draw from, and this information contributes to the development of a solid business plan based on more than speculation. On the other hand, for a startup it’s best to develop your plan for the first year of operations only. The process of preparing a business plan should begin with extensive market research. This can require weeks or months, depending on the techniques chosen and the availability of information. When it comes to market research, don’t take shortcuts. Inadequate market research prior to launching the program is a common reason for the failure of many social enterprise programs.
Elements of a Social Entrepreneurship Business Plan
There are many elements which contribute to a successful social entrepreneurship business plan. These include a detailed discussion of your purpose, including specific goals that you have for your enterprise as a social entrepreneur. You should also mention why your company is relevant, and discuss how much funding you’ll need. This is important because lenders or venture capitalists want to get an idea of how much money they should give you for your enterprise. It’s helpful to research business by reading magazines like Entrepreneur, Forbes and Fortune, especially if you lack a business background. You should also purchase books on social entrepreneurship from your local bookstore and do your homework. Because pre-program research and business plan development take time, you need to allocate a budget for the expenses to be incurred during this period.
Why a Social Entrepreneurship Business Plan is Important
While some may be tempted to skip the social entrepreneurship business plan altogether, it’s an important step that allows you to test the viability of your idea without risking too much money. It also helps you to focus your ideas and give more structure to your social enterprise. A good business plan is a necessary tool for raising finance as well, especially for obtaining grants. Loans or raising venture capital. The business plan provides a benchmark against which you can measure your performance as you go forward as well. The plan should be comprehensive, detailed, clear and concise. Anyone who reads the plan should be able to know exactly what the business does and how it will operate. The plan should clearly spell out the level of sales and profit for the first year, and explain why the business is likely to be successful.