Dream > Believe > Pursue
Ideas, Enterprise Ideas, Enterprise Concepts, and Business Concepts, and Business
PlansPlans
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OutlineOutline
• Creativity and ideasCreativity and ideas• Business modelsBusiness models• MissionsMissions• Business plansBusiness plans
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The idea machineThe idea machine
Stocks of knowledge Intelligence and alertness
Education
Networks
Life experience
Work experience
Access to information Utilization of information
Creative process of ideas and opportunities
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Creative venturesCreative ventures
innovation adaptation
invention extensionsynthesis
• Invention: cInvention: completely new service or ompletely new service or productproduct
• ExtensionExtension: new application of an existing : new application of an existing product or set of resourcesproduct or set of resources
• Synthesis:Synthesis: combines innovation and combines innovation and adaptationadaptation
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Idea generation Idea generation mechanismsmechanisms
• BrainstormingBrainstorming• Focus groupsFocus groups• SurveysSurveys
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Why Social Enterprises FailWhy Social Enterprises FailIdeas ≠ OpportunitiesIdeas ≠ Opportunities
• Bad ideasBad ideas• Good ideas that are not Good ideas that are not
opportunitiesopportunities
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
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Maslow’s HierarchyMaslow’s Hierarchy
physiological
safety and security
belongingess
self-esteem
cognitive
aesthetic
self-actualization
self-transcendence
Proper nutrition
School and neighborhood safety
Community programs
Empowerment programs
Academic programs
The arts
College scholarships
Programs to create mentors
Maslow’s hierarchy Example programs that meet different needs
physiological
safety and security
belongingess
self-esteem
cognitive
aesthetic
self-actualization
self-transcendence
Proper nutrition
School and neighborhood safety
Community programs
Empowerment programs
Academic programs
The arts
College scholarships
Programs to create mentors
Maslow’s hierarchy Example programs that meet different needs
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The Hierarchy of Social The Hierarchy of Social Enterprise OpportunitiesEnterprise Opportunities
physiological
safety and security
belongingess
self-esteem
cognitive
aesthetic
self-actualization
self-transcendence
Proper nutrition
School and neighborhood safety
Community programs
Empowerment programs
Academic programs
The arts
College scholarships
Programs to create mentors
Maslow’s hierarchy Example programs that meet different needs
physiological
safety and security
belongingess
self-esteem
cognitive
aesthetic
self-actualization
self-transcendence
Proper nutrition
School and neighborhood safety
Community programs
Empowerment programs
Academic programs
The arts
College scholarships
Programs to create mentors
Maslow’s hierarchy Example programs that meet different needs
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Opportunity sourcesOpportunity sources
• Technological changeTechnological change• Public policy shiftsPublic policy shifts• Changes in public opinionChanges in public opinion• Changes in tasteChanges in taste• Social and demographic changeSocial and demographic change
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OutlineOutline
• Creativity and ideasCreativity and ideas• Business modelsBusiness models• MissionsMissions• Business plansBusiness plans
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Business modelsBusiness models
• A business model is a blueprint for A business model is a blueprint for how an organization intends to create how an organization intends to create valuevalue
• Business model componentsBusiness model components– The missionThe mission– Strategic resources—what we needStrategic resources—what we need– Partnership network—who we will work Partnership network—who we will work
withwith– Service interface—how we connect to Service interface—how we connect to
clients, donors, etc.clients, donors, etc.
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A Business ModelA Business Model
Vulnerablepopulation
Job/lifetraining
Commercialenterprises
• Founder’s expertise and energy• Highland Park residents and businesses• Richmond residents and businesses• Local government
Clientrehabilitation
Communitydevelopment
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Business model threatsBusiness model threats
• Is it an opportunity (demand side Is it an opportunity (demand side threats)?threats)?
• Is it economically feasible Is it economically feasible (supply-side threats)?(supply-side threats)?
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OutlineOutline
• Creativity and ideasCreativity and ideas• Business modelsBusiness models• MissionsMissions• Business plansBusiness plans
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A sample missionA sample mission
The XYZ organization’s mission is to The XYZ organization’s mission is to provide youths from low-income provide youths from low-income neighborhoods with the academic skills neighborhoods with the academic skills and learning opportunities they need to and learning opportunities they need to succeed, and to provide college succeed, and to provide college students with the opportunity to students with the opportunity to understand and help meet those needs understand and help meet those needs in order to promote their own in order to promote their own development as leaders.development as leaders.
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4 Mission Questions4 Mission Questions
• What will the enterprise do, and What will the enterprise do, and what will it not do?what will it not do?
• What does “value” mean for this What does “value” mean for this enterprise, and how is it enterprise, and how is it measured?measured?
• What is this enterprise’s unique What is this enterprise’s unique innovation or adaptation?innovation or adaptation?
• What constitutes “success” for What constitutes “success” for this enterprise?this enterprise?
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A better mission statementA better mission statement
The XYZ organization provides low-income The XYZ organization provides low-income youths with the academic skills they need to youths with the academic skills they need to succeed in life, and gives college students the succeed in life, and gives college students the opportunity develop their leadership abilities. opportunity develop their leadership abilities. The first program of its kind in New York City, The first program of its kind in New York City, XYZ matches at-risk kids with students from XYZ matches at-risk kids with students from local universities who mentor them in basic local universities who mentor them in basic academics, and provide real-life role models of academics, and provide real-life role models of academic success. Our goal, while reaching as academic success. Our goal, while reaching as many young people as possible, is to create a many young people as possible, is to create a model for learning and teaching that others model for learning and teaching that others will emulate in New York and across America.will emulate in New York and across America.
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OutlineOutline
• Creativity and ideasCreativity and ideas• Business modelsBusiness models• MissionsMissions• Business plansBusiness plans
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Business plansBusiness plans
• A social enterprise’s “manual” for A social enterprise’s “manual” for key constituentskey constituents– Actual and potential fundersActual and potential funders– Government officialsGovernment officials– The communityThe community– The social entrepreneurThe social entrepreneur– Actual and potential staff and Actual and potential staff and
volunteersvolunteers– Board membersBoard members
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Business plan componentsBusiness plan components
1.1. Business plan summaryBusiness plan summary
2.2. Description of the enterpriseDescription of the enterprise
3.3. The teamThe team
4.4. The market and industryThe market and industry
5.5. Marketing and fundraisingMarketing and fundraising
6.6. The financial planThe financial plan
7.7. Goals and objectives, with a timelineGoals and objectives, with a timeline
8.8. Risk assessmentRisk assessment
9.9. Supporting documentsSupporting documents
See Class web page for sample B-plansSee Class web page for sample B-plans
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SummarySummary
• What is the venture?What is the venture?• Why is it new and important?Why is it new and important?• Who will benefit from it, and how?Who will benefit from it, and how?• How (in general terms) will the idea be How (in general terms) will the idea be
executed?executed?• Who is the social entrepreneur, and what Who is the social entrepreneur, and what
unique skill, service, or background does he unique skill, service, or background does he or she (or they) bring to the venture?or she (or they) bring to the venture?
• What kind of support for the enterprise is What kind of support for the enterprise is needed, and how much of it?needed, and how much of it?
• What will constitute success?What will constitute success?
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Enterprise descriptionEnterprise description
• The idea, and why it is an authentic The idea, and why it is an authentic opportunityopportunity
• The mission statementThe mission statement• Definition of value, and how it is to be Definition of value, and how it is to be
measured (2-25 class)measured (2-25 class)• Key innovations or adaptationsKey innovations or adaptations• Competitive advantageCompetitive advantage• The social enterprise’s legal structureThe social enterprise’s legal structure• Current status of enterpriseCurrent status of enterprise
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The enterprise team (4-7 class)The enterprise team (4-7 class)
• ManagementManagement• BoardBoard• AdvisorsAdvisors• Early donorsEarly donors
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Analysis of the market and Analysis of the market and industry (2-18 class)industry (2-18 class)
• Industry descriptionIndustry description• Target marketTarget market• Expected position and share in Expected position and share in
target markettarget market
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Enterprise marketing and Enterprise marketing and fundraising (2-18 class)fundraising (2-18 class)
• Fundraising targets and Fundraising targets and strategiesstrategies
• Grant-writing plansGrant-writing plans• Pricing planPricing plan• For-profit activitiesFor-profit activities• MarketingMarketing
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The financial planThe financial plan
• Financial needs for 3-5 yearsFinancial needs for 3-5 years• Financial projectionsFinancial projections• (Income statements)(Income statements)• Cash-flow projectionsCash-flow projections• (Balance sheets)(Balance sheets)
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Enterprise goals and Enterprise goals and objectivesobjectives
• Definition of successDefinition of success• Intermediate goals and success measuresIntermediate goals and success measures• Evidence that goals can be achievedEvidence that goals can be achieved• TimelineTimeline
– Start of the enterpriseStart of the enterprise– Incorporation date, if anyIncorporation date, if any– Hiring, space, and equipment acquisitionHiring, space, and equipment acquisition– Start of service deliveryStart of service delivery– Beginning of cash flow from fees, grants, and Beginning of cash flow from fees, grants, and
donationsdonations– Enterprise growth milestonesEnterprise growth milestones– Goal attainmentGoal attainment
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Enterprise risk assessmentEnterprise risk assessment
• Financial riskFinancial risk• Legal riskLegal risk• Talent riskTalent risk• Environmental riskEnvironmental risk
– Political and governmentalPolitical and governmental– EconomicEconomic– DemographicDemographic
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Most common B-plan pitfallsMost common B-plan pitfalls
• Failing to communicate realistic Failing to communicate realistic goalsgoals
• Failing to anticipate problems, Failing to anticipate problems, lack of evident commitment or lack of evident commitment or dedication to the venturededication to the venture
• Lack of experienceLack of experience• Failure to demonstrate market Failure to demonstrate market
nicheniche