Social entrepreneurship takes business principles and applies them to creating positive social change. Therefore, a business plan is one of the essential component to any social enterprise which allows it to operate in a businesslike manner.
Nonprofit Tools from the Private Sector
Nonprofit managers are increasingly embracing tools like this from the private sector because they offer a variety of benefits. A more donors and grant providers are also looking at social capital investments through a performance based lens, it makes sense that they want to see a business plan which will demonstrate the financial viability and expected results of a social venture.
However, it is also true that a standard private sector business plan is not easily translated for use in the social enterprise context. That is because the singular focus in the business world on the bottom line and generating profits does not fit with the social enterprise agenda. Fortunately, there are a variety of resources available today for drafting social entrepreneurship business plans. These plans start with the development of a mission, values and vision statement to drive the strategy of the venture. The vision statement is the social entrepreneurs vision of how the world should look when the desired outcome is achieved. The mission statement is the purpose of the social enterprise’s existence, and the values statement provides boundaries for actions which the organization will undertake.
Meshing Together Your Social Entrepreneurship Business Plan
If the strategies of your organization do not mesh with other aspects of your venture, these strategies are likely to fail. Similarly, if your organization fails to effectively implement its strategies it will also fail. There are many resources available online for social entrepreneurship business planning which can be useful for business students focusing on social entrepreneurship and for social entrepreneurship working on launching a new social business. Looking at the guidelines for some prestigious university social business plan competitions can give you a basic template on which you can build a solid social business plan.
Online Guides for Business Planning
There are also some online guides dedicated to helping people write social business plans for specific global markets such as China, Mexico and India. These guides outline strategic principles that should be incorporated in every social business plan and provide questionnaires and checklists to help social entrepreneurs in developing plans to suit their unique ideas.
The major difference between a social entrepreneurship business plan and a traditional business plan is that the social entrepreneur wants to use the plan to change society for the better. Rather than just add in some community service policies to a traditional business plan, social entrepreneurship goes further by putting community service at the very heart of the business.
Finding the Purpose of Your Business
When writing a social business plan, you should be sure to discuss the purpose of your business in detail. List all of your specific goals for your social enterprise, and how their achievement will benefit the community. You’ll also want to talk about what makes your company relevant in the community, and how it fills a need in an innovative way that is superior to the other options currently available. You will also want to discuss the level of funding you will require in the business plan in detail.