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,Creating a Social Enterprise Business Plan Stacey Childress February 21, 2007,2,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Definitions定义,Entrepreneurship as an activity or behavior as opposed to a person or an ideology Entrepreneurship The pursuit of opportunity regardless of the resources you currently control. Social entrepreneurship The pursuit of an opportunity to create pattern-breaking social change regardless of the resources you currently control.,3,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,SE Business Plan Elements商业计划基础,The problem and the opportunity问题和机会 Mission任务 Theory of change Your solution (strategy & business model)战略和运营模式 The team Growth strategy 发展战略 Measuring results调研成果 Competition竞争对手 Risks风险 Financial Plan财务,4,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,The problem and opportunity,What specific problem does your idea solve? Why is it important? What is the scale of the problem? What are the contributing factors to the problem?影响因素 Why is it solvable?可行性 What would the world look like if you solved it?社会影响,problem,opportunity,5,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Mission,Your statement of what you will achieve over the long term 4 “M”s of Mission Statements Memorable Manageable Measurable Motivational,Source: 4 Ms developed by Professor Jim Austin, HBS,6,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Mission Examples,One day, all children in this country will have the opportunity to achieve an excellent education Eradicate poverty housing in partnership with God and people from all walks of life We strive to bring forth a fresh and stylish fabric to the market in a socially conscious way and to dress timeless elegance with a touch of humanity and warmth Educating leaders who make a difference in the world,7,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Theory of Change,Based on your understanding of the problem, what is your theory about which actions will lead to the results you want to achieve? In other words, what is your logic chain? Are there leaps of faith in the theory? How do you defend them? Is your theory focused on local or systemic change? Or both?,A belief about “causality” that connects mission to action,8,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Theory of change Examples,Teach for America If the brightest college graduates agree to teach in high poverty schools for two years, then a) the students they teach will receive a high-quality education and b) the corps members will become lifelong leaders committed to social change Habitat for Humanity If we provide families with simple, decent, affordable housing, then the cycle of generational poverty will be broken. Yashmere, now Shokay If we source our yak fiber directly from Tibetan herders and reinvest our profits into their communities in areas such as health and education, then we will ensure the opportunity of choice to future Tibetan generations.,9,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Strategy and business model,How will you put your theory into action?,Who is the “customer” or beneficiary? How will you serve them? What specifically will your organization do? What does the initial management and governance structure look like to implement the strategy? What partnerships will you need? Is there an earned revenue stream? Corporate form what decision criteria did you use to choose to be a nonprofit or for-profit? (especially important if going to be for-profit),10,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Team,What is it about this team that makes it likely that you can execute this plan? Personal connection to mission? Background, experience, expertise? Network Advisors What expertise dont you have and how will you get it? How will the team composition change over time?,11,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Growth strategy,Do you plan to grow? If so, how replication of your organization or your model? (will you launch more sites or make your model available for others to implement?) Thoughts about growth: What value are you trying to create? At what level of quality do you need to perform on which critical variables in order to continue to create value as you grow? Given this, how do you balance the “need for speed” with the quality hurdle to maximize social value creation?,12,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Measuring results,How will you assess your organizations effectiveness in achieving its mission?,Indicators should link back to your theory of change & strategy, just enough indicators and no more. On what time horizon does it makes sense to measure at each stage? Set interim milestones and longer-term goals.,13,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Competition,What other solutions exist and what are the implications for your team? What other service providers or models are there? Whats distinctive about yours? How much money flows to your issue annually and how is it distributed? How will you capture some of those dollars or attract others?,14,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Risks,What could go wrong? contextually strategically programmatically financially How will you mitigate these risks? Dont overdo it, but dont avoid raising and addressing key risks to your plan.,15,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Financial plan,What is your strategy for financing your plan? Start-up How much start-up capital do you need? How will you spend it? What sources are available to provide seed capital? 启动资源? Pay attention to cash.,16,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Financial plan (2),Sustainability Revenue mix Identify fixed and variable costs of operating your model. Cost structure unit cost? Whats the right “unit”? How does growth affect your unit cost? Pay attention to cash. Cash flow projections & income statement (3 - 5 year pro-forma),17,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Some thoughts on the Executive Summary,They will read it first, but you should write it last. ES should motivate the reader to take some action for your purposes, to read the rest of your plan. ES should communicate the essence and excitement of your plan: Not an annotated table of contents Not an abstract Is your b-plan in miniature One page is great, two pages is fine, three pages is too long. Reader should come away thinking, “So thats what these folks are up to!”,Source for this slide: David Gumpert, How to Create a Really Successful Business Plan, October 2000,18,Created by Stacey Childress in March 2002, Harvard Business School. Revised November 2006,Tips for Getting Started on an ES,Attempt to crystallize the most important idea of each section of your plan into 2 or 3 punchy sentences (
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