Today, more than ever, many nonprofits are experiencing reductions or threats of reductions in their traditional funding sources. Many nonprofits are investing in the process to develop a business plan for a social enterprise that will result in unrestricted renewable revenue based upon their nonprofit's current assets - what they do, what they know and what they have. This fast-paced webinar is taught by a nonprofit consultant and trainer who has led nearly 100 nonprofits through the process to write their business plan for earned income. You'll explore the seven key steps required to launch a successful social enterprise.

1. Got Unrestricted Revenue?
The Social Enterprise Process
Jean Block
February 27, 2013
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2. INTEGRATED PLANNING
Advising nonprofits in: www.synthesispartnership.com
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• Planning (617) 969-1881
• Organizational Development info@synthesispartnership.com
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3. Affordable collaborative data
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4. Today’s Speaker
Jean Block
President and Owner
Social Enterprise Ventures, LLC
Assisting with chat questions: Hosting:
Jamie Maloney, Nonprofit Webinars Sam Frank, Synthesis Partnership
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5. Charity?
or
Tax Exempt Business?
Getting Started on Social Enterprise
Presented by Jean Block
Social Enterprise Ventures, LLC
Jean Block Consulting, Inc.
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6. Why Consider Social
Enterprise?
The funding marketplace is changing:
 Corporate giving directed toward investing for the long term rather
than buying tables for one night.
 Government funding diminishing and being redirected.
 Donors tired of giving to organizations that operate with a poverty
mentality.
What does this change mean for you?
 It means a shift to earned income instead of relying on a 'hand
out."
Nonprofit is a tax designation,
not a business plan!
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7. What is Social Enterprise?
 It is unrestricted renewable income that creates the
path toward sustainability and enhances your mission.
 It is generated through sales, payment for services or
other business opportunities.
 It should not replace fundraising – it is a new tool in
your organizational tool kit.
More Money = More Mission!
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8. Important Point
 Social Enterprise is NOT about turning
your nonprofit into a business…
 It’s about applying sound business
principles to your tax-exempt
business.
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9. Traditional Funding
 Grants, special events, donations, sponsorships,
underwriting, etc.
 You work hard to get it, use it up and have to go back
for more…the funnel effect!
 Strings attached: grantors require reports to ensure
you have met their funding requirements, donors at a
special event want to have a good time, enjoy the
food, etc.
 Traditional funding is usually restricted in some way.
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10. Myths about Social Enterprise
 Nonprofits can’t make a profit. You do now – you just
aren’t paying taxes on it!
 It’s a quick fix – We can do this tomorrow.
 If we earn money, we will lose our nonprofit status –
Nope. Not likely.
 What if we have to pay federal tax? Well, what if?
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11. Is Your Organization Ready?
 You are if you are ready to diversify your income or
are anticipating funding reductions.
 You are if board and staff leaders are willing to invest
in change from charity-think to sustainability!
 You are if board and staff create a dedicated team
who are willing to invest the time and dollar resources
into planning and launching a social enterprise.
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12. Typical Outcomes
 Fundamental and systemic changes in the way you
manage your tax-exempt business.
 A business plan for an earned income social
enterprise venture and/or…
 Enhancement of current programs and services by
providing value added benefits that create new
income sources from new payer markets and
customers.
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13. How to Become a Successful
Social Entrepreneur
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14. The Seven Steps Required to
Launch a Successful Social
Enterprise are:
 Step 1 – Organizational Focus
 Step 2 – Assets and Opportunities (Leveraging what
you do, what you have, what you know)
 Step 3 – Market Research – The Customer(s)
 Step 4 – Market Research – The Competition
 Step 5 – Costing and Financing
 Step 6 – Writing the Sales Plan
 Step 7 – Writing the Business Plan
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15. Start With the Basics
Step I - Organizational Focus
 Review Mission, Vision and Core Values.
 Identify Internal and External Forces.
 Set Mission and Dollar Goals.
◦ These are your benchmarks and go/no go
assessments.
 Develop a Stakeholder Communication plan.
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16. Build an Inventory of Assets
Step 2 – Identify Assets and Brainstorm Ideas
for Earned Income
 Core Competencies – What you do extremely well (e.g. your
products and services).
 Physical Assets – What you have that is underutilized.
 Technical and Knowledge Assets – What you know (e.g.
training).
 Relationship Assets - Who you know that can help with social
enterprise (e.g. people with influence, potential funders for training,
etc.).
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17. Remember This:
What you know and do everyday IS rocket
science to someone who doesn’t know it
or do it!
You have valuable, underutilized assets.
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18. Brainstorm Opportunities
Leverage Your Assets into Earned Income
 Service Opportunity-Delivers a service to a
current or new market.
◦ A human service agency bundles current and new
programs for seniors, selling to their adult children and
caregivers.
 Knowledge Opportunity- Delivers your
knowledge to a current or new market.
◦ An agency delivers financial literacy training to small
businesses.
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19. Brainstorming…
 Product Opportunity - Produces or delivers a
tangible product.
◦ A food bank expands its product line to include non-food
items.
 Employment Opportunity - Provides direct
employment to current or future customers or clients.
◦ An agency serving persons with disabilities expands its
greenhouse program into the organic market.
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20. Brainstorming…
 Unrelated Venture Opportunity - Takes
advantage of underutilized assets or develops an
opportunity unrelated to your asset inventory.
◦ An agency brings its vehicle donation program in house.
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21. Evaluate Opportunities
 Rank and score the opportunities.
 Use objective criteria.
 Select those with highest initial potential to reach
mission and dollar goals set in Step 1.
 Begin Market Research & Feasibility.
 There is no short-cutting this process from here on!
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22. Market Research & Feasibility
Step 3 - Market Research Part 1 : Know Your
Customer(s)
 Introduction to Market Research
 Market Push vs. Market Pull – What’s This???
 Market Trends – Current, future, what will impact us?
 Target Market Planning – What’s the best market for our idea?
◦ target markets – Who?
◦ market size – How many? Enough?
◦ buyers vs. users – Are they the same? Different?
◦ buyer and user motivation – Same? Different?
◦ buyer and user profiles – Who are they?
◦ features and benefits – What’s the difference?
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23. Question:
Wouldn’t knowing all this help you plan
and work better and smarter even if
you didn’t start a new venture?
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24. …a quote about research…
“You were right regarding the idea vs. the results of
the research. The market we thought was
interested was not or already had the need taken
care of. It's teaching us the value of research and
continuing to dig deeper on our ideas. Most of all,
it's showing us to follow where the research
leads.”
Zack Wilson, PR/Development
High Plains Food Bank, Amarillo Texas
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25. Competitive Analysis
Step 4 - Market Research Part 2: Know Your
Competition
 Who is Your Direct Competition?
 Who is Your Indirect Competition?
 What are Their Strengths and Weaknesses?
 Market Differentiation – How will you compete?
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26. Sales Planning
Step 5 – Develop Your Sales Plan
Roll Everything You Have Learned in Customer and
Competition Research
 Target Your Customer.
 Promote Your Competitive Advantage.
 Identify Your Market Position.
 Promote Your Distribution Methods.
 Set Your Price.
 Sell Your Social Enterprise. (PR)
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27. Costing Analysis
Step 6 – Identify all Costs
 Define Costs - direct, indirect, variable, fixed, start up and
recurring.
 Identify Your Break Even Point - Profit Margin.
 Definition of UBIT – IRS Publication 598
◦ It is a trade or business,
◦ It is regularly carried on, and
◦ It is not substantially related to furthering the exempt purpose
of your organization.
◦ Get professional advice at this stage in the planning process.
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28. Write a Business Plan
Step 7 – Write Your Business Plan
 How does the venture support your mission?
 What are mission and dollar goals for the venture?
 Describe the target customers and end users.
 What customer needs are addressed?
 What will motivate customers to buy your venture?
 Define your competition and your competitive advantage.
 Pricing strategy.
 Promotional strategy.
 Start up costs.
 Ongoing venture costs.
 Annual financial projections.
 Financing required.
 Plan to repay financing.
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29. Warning!
 Starting a business with current staff may
not work…
 Without strong staff and board leadership,
this may not work…
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30. Examples of Social Enterprise
Leveraging Existing Physical Assets
 Rental program for the agency’s party supplies.
 An agency serving persons with disabilities
becomes a certified organic greenhouse
business.
 Remodel ineffective space, add general support
services and rent space to small businesses and
other nonprofits.
 Revamp thrift store to attract a higher-end market
with special programs and services.
 Commercial kitchen provides hospital meals.
 Open camp to corporate and private users.
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31. Examples of Social Enterprise
Leveraging Technical/Knowledge Assets
 Opens training classes to other agencies and for
profits.
 Lead abatement training for contractors.
 Food bank expands its product line to include non-
food items.
 Counseling agency develops continuing education
credit programs for psychologists and counselors.
 Offer training programs for small businesses.
 Catering services using commercial kitchen.
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32. Examples of Social Enterprise
Unrelated/New Ventures
 An agency takes over management of its car
donation program, previously operated through
an out-of-state for profit company.
 An agency holds an on line auction in
partnership with a for profit business.
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33. …and a quote…
“During these challenging times [we] had to face the hard truth
that our regular funders are unable to fund at past levels -
sometimes not at any level.
If it were not for our Give Hope a Ride vehicle donation
program, [we] could not continue the excellent programs and
services for our guest families.
Eileen Casey Cook, CEO
Casa Esperanza, Inc. & Casa Esperanza Foundation, Inc.
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34. Thank You!
Want to Learn More?
www.socialenterpriseventures.com
505.899.1520
jean@jblockinc.com
Visit the Web Site to Review the Learn It & Earn It
Opportunity to Become a Certified SEV
Trainer/Senior Consultant.
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35. Find listings for our current season
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