Social Enterprise Learning Toolkit (Business Operations Module)

Business Operations Module #5

Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business

Operations ■ Customer Relations ■ Marketing ■ Risk Analysis

Operating a Social Enterprise is operating a business.

Social Enterprises require “business”specific strategies, measurements and discipline.

Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business

Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 2

Product or Service◦ Clearly defined the „what‟ being sold

Customer or Market Segment◦ Clearly identified the „who‟ is buying

Customer Value Proposition◦ Clearly defined the „why‟ they buy

Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business

Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 3

Operational Plans◦ Clear understanding of processes

Supply Channels ◦ For example: materials, phones, counselors,

volunteers

Production Costs and Distribution Systems◦ Understand the „how‟

Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business

Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 4

Sales Revenue ◦ Gross Income

Profits ◦ Income less Expenses

Capital Assets◦ For example: Property

Learning and Improving◦ Continuous assessment & adjustment

Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business

Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 5

Quality of Products

Efficiency of Employees

Production and Delivery Systems

Appropriate Technology

Knowing the Industry and Business Sector you‟re working in

Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business

Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 6

Business Planning◦ Feasibility

Prototype Development

◦ Business Plan

Preparations to Launch◦ Financing, Site, Staff, Marketing

Launch

Monitoring, Improving or Growing

Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business

Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 7

What is your blended value proposition?◦ Business & Social

How is social value integrated into your operations?

What financial ratios are effected by your social impact costs?

Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business

Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 8

Starting and operating a social enterprise is easy … we can do it off the side of our desk …

No need to worry about all that planning „stuff‟.

Customers will buy our products because we have such a great social cause!

Whew, now we can quit writing grants and fundraising

This will fix our dysfunctional organization…

Bigger is always better, let‟s scale now!

Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business

Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 9

Non-Profit Business

Social Program Goals Donations / Grants Decision Making:

Inclusive Low Risk Tolerance Program Evaluation Staff Skills Funder focus Client focus

Revenue/Sales Goals Investors Decision Making:

Opportunistic Higher Risk Tolerance Financial Evaluations Staff Skills (link to

employment/needs) Customer Focus

Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business

Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 10

What business sector are you in?

What are you selling?◦ Product or Service

To whom are you selling?◦ Customer

Why will they purchase from you? ◦ Customer Value Proposition

Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business

Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 11

How will you produce your product? ◦ Supply Channels of Material

How will you distribute your product? ◦ Distribution System

How much money came in? ◦ Sales Revenue & Gross Income

Which expenses did you include & subtract?◦ Profits & Net Income

Governance ■ Leadership ■ Blended Value Design ■ Products & Markets ■ Business

Operations ■ Customer Relations ■ Marketing ■ Risk Analysis 12

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Social enterprises are businesses operated by non-profits with the dual

purpose of generating income by selling a product or service in the

marketplace and creating a social, environmental or cultural value.

Enterprising Non-Profits (enp) is a unique, collaborative program that

promotes and supports social enterprise development and growth as a means

to build strong non-profits and healthier communities. The program is

supported by the following funding organizations:

For more information on enp and different modules in the Social Enterprise

Learning Toolkit please check out www.enterprisingnonprofits.ca