Weitere ähnliche Inhalte Ähnlich wie ENTR4800 Class 3 - Business Modelling for Social Enterprise Ähnlich wie ENTR4800 Class 3 - Business Modelling for Social Enterprise (20) Mehr von Social Entrepreneurship Mehr von Social Entrepreneurship (20) Kürzlich hochgeladen (20) ENTR4800 Class 3 - Business Modelling for Social Enterprise1. ENTR 4800: Social Entrepreneurship
Class 3: Business Modelling for Social
Enterprise
Monday, September 26, 2011
Instructors:
Norm Tasevski (norm@socialentrepreneurship.ca)
Karim Harji (karim@socialentrepreneurship.ca)
1
4. © Norm Tasevski & Karim Harji
Agenda
• Centre for Social Innovation
• What are the components of a business model for
social enterprise?
• Guest Speaker – Bill Young
• What did we learn – Today?
• Next week
4
6. © Norm Tasevski & Karim Harji
A Caveat…
When we business model for social enterprise, we
focus on the “business”, not the “social”…
But don’t worry, we will come back to the “social”
later…
6
7. © Norm Tasevski & Karim Harji
A Second Caveat…
“Business
“Business Form/Legal
Model” Structure”
7
8. © Norm Tasevski & Karim Harji
A Third Caveat…
“Business “Business
Model” Plan”
Business
Model
1st!!!
(Business
Plan
2nd)
8
10. © Norm Tasevski & Karim Harji
Because…
It is a cure for “We Need a Plan-itis”
10
11. © Norm Tasevski & Karim Harji
And…
It is a Quick way to assess Profitability/Sustainability
– Why spend months building a plan if you don’t have a real
sense of profitability/sustainability?
– If your model doesn’t make money, even with the most
ideal conditions…
…STOP! (…and rethink your business model)
11
12. © Norm Tasevski & Karim Harji
One More…
It breaks down highly complex business ideas into
easily digestible (and visual) chunks
– Gets to the heart of what you need to know to:
Make a Go No-
Go Decision
Set Strategy
Make Potential
Investors/funders
(and business
partners) Happy :)
12
13. Business Plans
Business Models
Are big and complex
Are small and visual
(often 50-100+ pages)
(1 page with about 10 supporting
pages)
Cover many topics
Focus on a few topics
(business description, financials,
marketing strategy, HR strategy,
(Will you make $$? How do the
Operations Strategy management team, pieces fit together?)
etc, etc, etc)
Take weeks/months to Take a few days (possibly
create
hours) to create
Are necessary for Feed the business plan!!
investors, funders,
business partners, etc
13
14. © Norm Tasevski & Karim Harji
Our Goal for Today
We’ll be building business models for YOUR business
idea…
14
15. © Norm Tasevski & Karim Harji
user networks!
franchising!
freemium! ! web ads!
etc…etc…etc…!
licensing!
retail! micro-finance!
subscription! loyalty!
open-source!
nonprofit (donation)!
solution shops!
15!
16. © Norm Tasevski & Karim Harji
Some Definitions
• “A business model describes the rationale of how an organization
creates, delivers and captures value – economic, social, or other
forms of value”
Wikipedia
• “A description of the means and methods a firm employs to earn the
revenue projected in its plans. It views the business as a system and
answers the question, “How are we going to make money to survive
and grow?”
BusinessDictionary.com
• “A business model describes the specific way the business expects to
make money. While a business plan is on paper (lots of paper!) a
business model should be small enough to stay in the heads of the
owner and staff. If a business model is on paper, it should be one
page, and it would be more clearly shown as a diagram than as
words.”
AudienceDialogue.net
16
18. © Norm Tasevski & Karim Harji
Customer Segments
What you need to care about is…
– Customer “Pain”
– Difference between a “customer” and a “client”
18
20. © Norm Tasevski & Karim Harji
Who are your customers?
What does their Empathy map look like?
20
21. © Norm Tasevski & Karim Harji
Value Proposition (the “Offer”)
What you need to care about is…
– The “value” you are creating for customers (in terms
of products/services), and the “pain” you are
alleviating
– An exchange of value 21
22. © Norm Tasevski & Karim Harji
Quick…
What is the last thing you bought?
22
25. © Norm Tasevski & Karim Harji
Channels
What you need to care about is…
– How the customer receives the offer/value prop
– The physical “movement” of the offer into the hands
of the customer
25
27. © Norm Tasevski & Karim Harji
Relationships
What you need to care about is…
– Personal and impersonal interaction with the
customer
– The “movement” of information (e.g. marketing,
communication) 27
28. © Norm Tasevski & Karim Harji
What relationships will you make with your customers?
28
29. © Norm Tasevski & Karim Harji
Revenue Streams
What you need to care about is…
– Cash!!! (specifically, how cash flows into the
enterprise) – “Money In”
– Pricing models
29
31. © Norm Tasevski & Karim Harji
Key Resources
What you need to care about is…
– Assets…
– …and how these assets create value
– Includes human, physical, intellectual, and financial
resources 31
33. © Norm Tasevski & Karim Harji
Key Activities
What you need to care about is…
– Actions (specifically, the actions you plan to take to
generate value)
– Both “direct” and “indirect”
33
35. © Norm Tasevski & Karim Harji
Key Partners
What you need to care about is…
– People/organizations that are integral to enabling
you to do business
– How you partner, and what you partner on
35
37. © Norm Tasevski & Karim Harji
A
Common Commitment
Vision! to Invest in
the
Partnership!
Same Core
Values!
Discreet
Missions!
37
39. © Norm Tasevski & Karim Harji
Cost Structure
What you need to care about is…
– Fixed costs, variable costs, economies of
scale…“money out”
– At this stage, focus on your cost assumptions! (don’t
worry about actual $$) 39
40. © Norm Tasevski & Karim Harji
What does your cost structure look like (in simple
terms)?
40
43. © Norm Tasevski & Karim Harji
Lending and Personal
collecting $$
s
$$ Microloan
Government
BOP
rs
Entrepreneu
Branches
-Branches
-Brand
-Capital
-People
Interest rates
ts
-Capital Cos
43
44. © Norm Tasevski & Karim Harji
Tip…
• Be a Business Model “Alchemist” – You need to go
through the business model process many times in
order to figure out which model best fits
44
47. © Norm Tasevski & Karim Harji
“Sticky Ideation”…
What we know! What we Don’t
Know!
Bridging the Gap!
!
(turning what we
don’t know into what
we know)!
47
49. © Norm Tasevski & Karim Harji
Next Class
• Deliverables:
– The “revenue” side of your business model (and your
motivations, mission, vision and values)
• Readings
49