You are on page 1of 29

Ideas, Enterprise

Concepts, and Business


Plans

Dream > Believe > Pursue

Outline
Creativity and ideas
Business models
Missions
Business plans

Dream > Believe > Pursue

The idea machine

Dream > Believe > Pursue

Creative ventures

Invention: completely new service or


product
Extension: new application of an existing
product or set of resources
Synthesis: combines innovation and
adaptation
4

Dream > Believe > Pursue

Idea generation
mechanisms
Brainstorming
Focus groups
Surveys

Dream > Believe > Pursue

Why Social Enterprises Fail


Ideas Opportunities
Bad ideas
Good ideas that are not
opportunities

Opportunity

No opportunity

Idea

A venture with
potential is
conceived

A venture
without potential
is conceived

No idea

Missed
opportunity

Correct rejection
of an idea

Dream > Believe > Pursue

Maslows Hierarchy

Dream > Believe > Pursue

The Hierarchy of Social


Enterprise Opportunities

Dream > Believe > Pursue

Opportunity sources
Technological change
Public policy shifts
Changes in public opinion
Changes in taste
Social and demographic change

Dream > Believe > Pursue

Outline
Creativity and ideas
Business models
Missions
Business plans

10

Dream > Believe > Pursue

Business models
A business model is a blueprint for
how an organization intends to create
value
Business model components

The mission
Strategic resourceswhat we need
Partnership networkwho we will work
with
Service interfacehow we connect to
clients, donors, etc.
11

Dream > Believe > Pursue

A Business Model

12

Dream > Believe > Pursue

Business model threats


Is it an opportunity (demand
side threats)?

Is it economically feasible
(supply-side threats)?

13

Dream > Believe > Pursue

Outline
Creativity and ideas
Business models
Missions
Business plans

14

Dream > Believe > Pursue

A sample mission
The XYZ organizations mission is to
provide youths from low-income
neighborhoods with the academic skills
and learning opportunities they need to
succeed, and to provide college
students with the opportunity to
understand and help meet those needs
in order to promote their own
development as leaders.

15

Dream > Believe > Pursue

4 Mission Questions
What will the enterprise do, and
what will it not do?
What does value mean for this
enterprise, and how is it measured?
What is this enterprises unique
innovation or adaptation?
What constitutes success for this
enterprise?

16

Dream > Believe > Pursue

A better mission statement


The XYZ organization provides low-income
youths with the academic skills they need to
succeed in life, and gives college students the
opportunity develop their leadership abilities.
The first program of its kind in New York City,
XYZ matches at-risk kids with students from
local universities who mentor them in basic
academics, and provide real-life role models of
academic success. Our goal, while reaching as
many young people as possible, is to create a
model for learning and teaching that others will
emulate in New York and across America.
17

Dream > Believe > Pursue

Outline
Creativity and ideas
Business models
Missions
Business plans

18

Dream > Believe > Pursue

Business plans
A social enterprises manual for
key constituents
Actual and potential funders
Government officials
The community
The social entrepreneur
Actual and potential staff and
volunteers
Board members
19

Dream > Believe > Pursue

Business plan components


1.
2.
3.
4.
5.
6.
7.
8.
9.

Business plan summary


Description of the enterprise
The team
The market and industry
Marketing and fundraising
The financial plan
Goals and objectives, with a timeline
Risk assessment
Supporting documents

See Class web page for sample B-plans

20

Dream > Believe > Pursue

Summary

What is the venture?


Why is it new and important?
Who will benefit from it, and how?
How (in general terms) will the idea be
executed?
Who is the social entrepreneur, and what
unique skill, service, or background does he or
she (or they) bring to the venture?
What kind of support for the enterprise is
needed, and how much of it?
What will constitute success?
21

Dream > Believe > Pursue

Enterprise description
The idea, and why it is an authentic
opportunity
The mission statement
Definition of value, and how it is to be
measured (2-25 class)
Key innovations or adaptations
Competitive advantage
The social enterprises legal structure
Current status of enterprise
22

Dream > Believe > Pursue

The enterprise team (4-7 class)


Management
Board
Advisors
Early donors

23

Dream > Believe > Pursue

Analysis of the market and


industry (2-18 class)
Industry description
Target market
Expected position and share in
target market

24

Dream > Believe > Pursue

Enterprise marketing and


fundraising (2-18 class)
Fundraising targets and
strategies
Grant-writing plans
Pricing plan
For-profit activities
Marketing

25

Dream > Believe > Pursue

The financial plan


Financial needs for 3-5 years
Financial projections
(Income statements)
Cash-flow projections
(Balance sheets)

26

Dream > Believe > Pursue

Enterprise goals and


objectives

Definition of success
Intermediate goals and success measures
Evidence that goals can be achieved
Timeline

Start of the enterprise


Incorporation date, if any
Hiring, space, and equipment acquisition
Start of service delivery
Beginning of cash flow from fees, grants, and
donations
Enterprise growth milestones
Goal attainment
27

Dream > Believe > Pursue

Enterprise risk assessment


Financial risk
Legal risk
Talent risk
Environmental risk
Political and governmental
Economic
Demographic

28

Dream > Believe > Pursue

Most common B-plan pitfalls


Failing to communicate realistic
goals
Failing to anticipate problems,
lack of evident commitment or
dedication to the venture
Lack of experience
Failure to demonstrate market
niche
29

Dream > Believe > Pursue