Slides from session 4 of my course in the "Design for Social Business" at Istituto Europeo di Design Milano in spring 2011. The course is experimental, started as a collaboration between IED and Grameen Creative Lab
1. //PLANS//
Business planning for the social enterprise
Alberto Cottica
D4SB Master Course
From opportunity assessment to business planning in social business
Lesson 4
4. • WHAT do you want to do, and WHY do
we need it?
5. • WHAT do you want to do, and WHY do
we need it?
• WHO are you and your allies, and WHY
are you uniquely equipped to carry it
out?
6. • WHAT do you want to do, and WHY do
we need it?
• WHO are you and your allies, and WHY
are you uniquely equipped to carry it
out?
• HOW are you going to make the
business part of this sustainable?
WHICH resources will you need?
WHICH revenues will you generate?
19. Estimating revenues
•possibly the hardest part of a BP!
•what drives it? Metrics are appreciated
•use market research data: do your own surveys and
interviews when possible
20. Estimating revenues
•possibly the hardest part of a BP!
•what drives it? Metrics are appreciated
•use market research data: do your own surveys and
interviews when possible
•a guess is better than nothing
21. Estimating revenues
•possibly the hardest part of a BP!
•what drives it? Metrics are appreciated
•use market research data: do your own surveys and
interviews when possible
•a guess is better than nothing
•the value is in the exercise, not in the estimate
27. Equilibrium
•economic: revenues > costs
•financial: assets balance liabilities over any given time
horizon, i.e. you can pay your debts!
28. Equilibrium
•economic: revenues > costs
•financial: assets balance liabilities over any given time
horizon, i.e. you can pay your debts!
•“cash flow is king”
29. $
revenue (cumulated)
costs (cumulated)
initial investment break even time
35. Some financial complications
•investments imply costs now, yield returns later
•normally they are depreciated — shared among the
time period for which they yield returns
36. Some financial complications
•investments imply costs now, yield returns later
•normally they are depreciated — shared among the
time period for which they yield returns
•growth normally implies financial hardships