A manual and tool-Kit to help applications for assistance and funding as well as guide to help crystallize thoughts and processes to help become more effective and innovative in creating social enterprise solutions

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www.thepatriots.network
T H E PAT R I O T S
Toolkit / 2016-2017

2. Adapted from Seedco Tool Kit
A Toolkit for Developing a Social Purpose Business Plan
Introduction
How to Use this Toolkit
The Patriots Network
Part I: Getting Started
Key Elements of a Social Purpose Business
Testing for Mission-fit
Taking Inventory of the Organization
Tying it all Together
Addressing Organizational Change
Part II: The Business Plan
Market Opportunity
Part III: Resource Guide
Pitching Your Business
Working with Consultants
Part IV: Worksheets, Templates and Examples

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Why a Social Purpose Business
Planning Toolkit?
A social purpose business is a
business activity started by a
nonprofit organization that
applies market-based solutions
for the purposes of furthering
the mission of the organization,
generating income, and
addressing social needs. Over
the past years, the social
enterprise field has grown
significantly. They are seeking
innovative methods of
diversifying their revenues and
building more sustainable
organizations. As a result, Social
enterprise are seeking
assistance in developing and
launching these ventures.While
starting a social purpose
business shares many
characteristics with developing
a traditional small business
venture, there are marked
differences. Most importantly,
as an individual, you follow a
mission to provide a needed
service to the community. On
the flip side, as an organization
rather than an individual, you
may have access to more
resources, be able to build a
planning team consisting of
diverse backgrounds and
expertise, and have a proven
reputation in the community.
This Social Purpose Business
Planning Toolkit takes all these
into consideration throughout
the planning process. In
addition, the Business Plan you
develop with this toolkit will
highlight the social
components and social
outcomes of the business. As a
communications tool, these
sections are important as they
show the way that the
organization and community
will benefit. In addition, these
sections are important to
socially conscious funders who
are seeking a social return on
their investments.
Who Should Use this
Toolkit?
The Social Purpose Business
Planning Toolkit is designed for
social enterprises that are
considering starting a revenue-
generating activity or a
business venture. The toolkit
begins with the assessment of
an idea in the context of your
organization, so to begin, you
will need to have a few ideas
percolating. In addition,
organizations that are currently
operating a business might use
the Toolkit as a guide for
developing a plan for
expansion or for revising their
business model.
Social Purpose Business
Development: How to Use
this Toolkit

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Business Plan
Developing a business plan is an exciting, but challenging process.
Developing your business and then writing the business plan can take
anywhere from several months to over a year. Staff time,
organizational resources, outside consultants or experts in the field are
required for the process. In the end, the business plan serves as both a
communications tool and a management tool to evaluate your
performance and revise your assumptions. It will justify the risks and
explain the rewards associated with the business. A good business plan
will:
• Illustrate demand for your product
• Demonstrate stakeholders' interests and needs
• Confirm that the business concept is viable
• Post healthy and realistic financial projections
• Demonstrate staff and management expertise
• Explain your ability to meet the proposed social outcomes
The Case Study
Throughout the Toolkit, we use
business models that fit into the
PATRIOTS Network model. for
social enterprises carried out by
organisations, individuals and
groups.

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We will be using the NVN model as a
guide which are delivered in three
phases;
Phase I: Learning
This phase provides organizations with assessment and capacity building
tools on Social Purpose Businesses.
Phase II: Planning
Organizations individuals and groups that have completed Phase I are
eligible to apply for pre-development through the Entrepreneurial
Assistance Fund, which begins Phase II of the program. Over the course of
the year-long grant period, The PATRIOTS Network will work with
organizations in group settings and one-on-one to develop a business
plan.
Phase III: Implementation
Phase III offers grantees access to several forms of financial assistance to
support their efforts in pursuing a social purpose business, ranging from
grants to below-market loans and near- equity instruments. In order for
organizations to move from Phase II to Phase III, eligible organizations
must have a business plan and meet The PATRIOTS due diligence
requirements.
The PATRIOTS Network was formally launched in October 2016 at
Nustreams conference centre in Ibadan, Nigeria. In addition,The PATRIOTS
Network plans to expand nationally and is exploring opportunities in
several communities.

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Part 1: Getting Started
I have an Idea!
OVERVIEW
You probably come to the business planning process with an
idea born out of your need to generate new sources of
revenue or address a new need among the community that
you are. But how do you know if the idea is sound? This
section helps you evaluate the idea and poses questions to
answer as you look at the organization’s capacity to take on a
major new endeavor. It will cover the following topics:
• Five Key Elements of a Social Purpose Business
• Testing for Mission-fit
• Taking Inventory
• Looking at the External Context
• Tying it all Together
• Building a Business: follow different Business Models

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1.Mission. Your mission is
central to all the activities that
you will pursue in forming the
business. social purpose
business is a venture that
applies market-based
solutions for the purposes of
furthering the mission of the
organization, generating
income and addressing social
needs.
2. Business Idea. Your idea
will evolve into a full-fledged
business that includes what you
are selling, the customers to
whom you are selling and your
“market advantage” (i.e. why
customers will buy your
product/service).
3. The Organization. Your
organization consists of an
overlying culture and the
individuals and groups that
have a direct stake in the
success of the business. These
stakeholders include the
management, staff, volunteers,
target population or clients,
board members and funders.
4. Relationships.
Relationships describe the way
your business interacts with
people or other businesses who
are not direct stakeholders, but
who have an influence on the
success of the business.
Relationships may include
vendors, suppliers and strategic
partners.
5. Environment. The
environment consists of the
external forces that affect the
business. These are
circumstances outside of your
control that will influence the
planning or operations of the
business.
A successful business builds
strength in all five areas but also
understands the relationship
between these areas. For
example, you need the right
people to run your business,
negotiate effective relationships
and maintain focus on the
mission and social outcomes. In
addition, your business idea
must provide an opportunity to
further the mission of the
organization and also must
make sense within the
environmental context. Though
this seems very straightforward,
continually assessing your
business around these five
areas will help during both
planning and operating stages.
The inter-relationship of the
elements is illustrated on the
next page.
Five Key Elements of Your Social
Purpose Business
Starting a social purpose business is challenging and will require a project champion, staff resources,
a significant amount of time and financing. As you create your business, you will take into account five
key elements: mission, the business idea, your organization, relationships and the environment.

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Testing for Mission-fit
Is there a Fit Between Your Business Idea and Your Organization’s
Mission?
A key step in the development of a social purpose business is determining how it aligns with your
organization’s mission and program activities. It is also important to think about the needs and interests of
the clients you expect to serve through your social purpose business. **The mission of your organization
and your clients are key factors in developing and assessing your business idea.
One way to ensure that your business idea makes sense to your stakeholders and clients is to include them in
the development process. Ask them for input before starting the social purpose business. The following
Strategic Questions provide a way for you to articulate your initial social and financial goals.
What is the mission of your organization?
What is your social purpose business idea? What product or service do you plan to offer and who are your
target customers?
What are the demographics and the needs of the clients that you expect to benefit from this idea?
How will the venture benefit your clients? What needs, interests and skills sets do they bring to the venture?
- What programs do you have that currently serve the needs of your clients?
- Have your clients expressed a special interest for new services? What kinds of new services/programs are they
interested in?
- What are your client's key skill sets in terms of what is needed for the business venture? How would you rate
their skill level (low, medium, or high)?
What assets will you use to create the business venture, e.g. building, property, equipment, intellectual property,
proprietary processes?
What other ways might you use these assets, e.g. sell the building or equipment, use the equipment for a new
program?
What are the anticipated benefits or outcomes for your clients and the organization that will result from starting
a social purpose business?
What are the financial goals of the business (break-even, generate profits to be used for additional training or
spin off revenues for other programs)?
**Organization” refers to the nonprofit that is developing the business and “client” refers to the target population that is served by the
nonprofit.

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Go through the Strategic Questions
Worksheet, located in Part IV of the
Toolkit, in order to evaluate the idea.
Action
After completing the Strategic Questions and reviewing the responses
received from other stakeholders, you should be better able to assess whether
the business idea truly does "extend" the mission of the organization.
• Is the business venture
consistent with the overall
mission of the organization or
is it a major shift from the work
you do?
• Are the goals and outcomes
of the business venture in line
with the organization's
mission? Do they make sense?
• Does the business serve the
needs, interests and abilities
of your clients?
• Will the business meet the
needs of other stakeholders in
meaningful ways?

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Use the Organizational Assessment Survey,
located in Part IV of the Toolkit, to take stock
of the organization, map your resources, and
evaluate the missing pieces
Taking Inventory of
Your Organization
Now that you have examined the relationship between your business idea and
mission, you are ready to assess the business idea in the context of your
organization. Social purpose businesses succeed when there is a sound opportunity
(the right "Business Idea") and an entrepreneurial management team (the right
"People") to carry out the task of launching a business. Using the Organizational
Assessment Survey, you will evaluate what your organization already possesses to
help you develop the "Business Idea", and what "People" are in place to lead the
effort. By examining your organization's core competencies and the expertise you
bring to the process you will be able to better determine if this business makes
sense for your organization. The Organizational Assessment includes:
Articulation of the organization's values and strengths.
Assessment of the financial, staff, and physical (equipment, property, etc.) resources
that are needed and available for the business planning process and launch.
Identification of advocates, stakeholders and partners that will provide assistance for
the planning and launch of the business.
Recognition of the potential challenges and difficulties with planning and launching
the business.
Definition of roles and responsibilities among current and potential staff for the
business.

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Organizational Commitment Checklist
Review your Organizational Assessment Survey to evaluate whether your organization is
able and willing to make a commitment to developing a business. It is okay if there are
missing pieces and unanswered questions during the initial planning phase. However, the
organization should recognize that the following are needed:
Dedicated resources to support the business planning process.
A strategic plan that includes the development of a social purpose business as a near-term
strategy and/or a board resolution that supports the development of a social purpose
business.
A clear vision of the goals of the business.
A set of core values that can drive the development of the social
purpose business.
A general understanding of the risk factors involved in starting a social purpose business.
Mitigation strategies to address resistance to change among staff, clients and
stakeholders.
Entrepreneurship Team ("People") Checklist
Review your Organizational Assessment Survey to evaluate whether your organization has
the people in place to support the business planning process:
Project champion to lead the business planning process.
Management team that understands the risks and is realistic about
possible results of the social purpose business.
Board of Directors that supports the development of the social purpose business.
Board of Directors and staff who understand that the desired outcome for a social purpose
business is a mix of social and financial returns.
The Organizational Assessment Survey is meant to help you understand what you have and
what you might need. Making the decision to launch a social purpose business is a
significant one and requires a sound business idea and organizational readiness. Based on
what you've learned thus far, are you ready to begin the business planning process?

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Beginning the Business Planning Process: An Initial
Look at the External Context
Now that you have evaluated your business idea in the context of your
organization, it is time to take a look at the market opportunity (i.e. the
potential to sell your product or service) and the external environment.
When you write your business plan, you will conduct the research into your
potential market. However, at this time, it is important to take a preliminary
look at what's happening outside of your organization that can potentially
affect business development. The External Environment Assessment will
ask you to look at the following:
Who are your potential customers? Describe them demographically.
What similar products do these customers currently buy? What do they
look for when buying similar products/services?
Do you know who else is operating in the same market and targeting the
same customers? Who are your competitors?
How will you compete? How will your business be different?
What is happening with the economy and your industry in particular?
Are there major changes in what customers need and want, how they
access the product or the price? How might this affect your business?

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Action
Through the External
Environment Assessment you
should have considered your
potential to sell your product or
service in the context of your
prospective customers and
existing competition. Overall,
how will the external
environment affect the
development of your business?
How can you mitigate the
associated challenges? One
solution may be to revise your
business idea. Perhaps you
need to scale back the idea or
even change it if these
conditions prove to be too
much of a challenge. You can go
back to the Strategic Questions
Worksheet to think through a
new idea. Keep in mind that
sharpening your business idea
can be, and oftentimes is, an
iterative process.
Complete the External Environment Assessment
located in Part IV of the Toolkit. You may not be able
to answer all of the questions at length, but you
should have a general sense of what kind of
opportunity exists.

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Understanding where your strengths lie and where you need assistance will enable
you to make smart decisions about the business planning process. In the next
section you will begin to develop your social purpose business plan and learn
techniques to communicate your ideas to others.
The worksheets and questions in this section will allow you to examine your idea and
organization. After doing this work, you should be able to answer the following
questions:
• Doesthebusinessventurefurtherthemissionofyour organization?
• Isthebusinessventureanundertakingyourorganizationwantsto pursue?
• Doesyourorganizationhavethecapacitytodevelopasocial purpose business?
• Do the organization and Board of Directors understand the risks involved and are
they willing to take such risks?
• Istheorganizationbeingrealisticaboutpossibleresults?
• Isthetimingrighttodevelopasocialpurposebusiness?
• Doestheorganizationhavetherightpeoplewiththerightskillsand is it willing to give
them the freedom, responsibility and authority necessary for entrepreneurial
success?
• Doestheorganizationhaveenoughstayingpowerintermsoftime, energy and money?
• Istheorganizationwillingtomakemistakes?
Conclusion: Tying It all
Together
Use the Action Planning Template located in
Part IV of the Toolkit to plan the primary
activities associated with developing a
business plan for your idea.

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Reviewing the Action Plan
To complete the action planning process, answer the
following questions: •
Areanykeyactivities(orstaff)missingfromtheplan?
•
Aretherepotentialbottlenecksordelaysinanypartoftheplanth
at
might cause problems moving forward during
implementation? • Whichactivitieshaveflexibledeadlines?
Whichdonot?
Conclusion
Developing a social purpose business is intensive and
requires a sound business idea, organizational readiness
and a strategy that guides business development. The work
you have completed in this section has provided you with
an important opportunity to think strategically about your
organization and the way in which a business venture can
strengthen its work and further its mission. In developing
the specific components of the business plan, revisit this
section and use it as a guide for shaping the story you want
to tell about your social purpose business.
In this section, you have assessed your business idea and
how it relates to your organizational mission. You have also
explored the ways in which the external environment can
impact your business idea.
As a result, you should be able to:
• Articulatetheoutcomesforyoursocialpurposebusiness
•
Describeyourbusinessideaanditsrelationshiptoyourmission
and programmatic activities
Now it is time to get to the real meat of the business
planning process- drafting your business plan. The second
part of this Toolkit details the components of the Business
Plan and provides a how-to manual to formulate a strong
and compelling document.

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Part 2: The Market Opportunity
So you think you have a great idea...
The Market Opportunity Section is intended to convince your reader that there is
both a need and demand for your product or service. The Market Opportunity
Section should demonstrate an understanding of your customers in terms of
demographics and the factors that will influence their decision to purchase your
product or service.
OVERVIEW
The viability of your business is based on a variety of factors - the market
opportunity, the business model, the social and financial outcomes and the
management team. In this Section, you will explain in detail the rationale for
the business venture by describing the opportunity that exists for your
product or service. Why is the business needed and by whom? The key items
that you want to convey are demand for your product or service and the
overall characteristics of the market itself. It includes:
External and Industry Context of the business.
Market Description, including size, growth rate and level of demand for
your product offering.
Customers, including target segments, demographics, purchasing power and
decision factors.
Competition at the local, regional and national levels.
Summary of the market opportunity.
This part of the business plan presents an overall picture of where your
business will fit within its industry and market. You should begin with a macro-
level look and then narrow the focus down all the way to your target
customer. Finally, you will show where your competitors fit within both the
market and your target customer base.

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Part 2: Exhibits
Supporting your business plan.
In your business plan, exhibits are the supporting materials that back
up the story you have told throughout the documents. Include
relevant information that helps make your case.
Examples of items that could be in the Exhibits Section include:
1. Detailed financial projections, monthly cash flows and other
supporting financial information
2. Financial statements of the parent nonprofit
3. Resumes and biographies of key managers, staff or Board
members Descriptions of the parent nonprofit activities
4. Press clippings or other news items about the business or relevant
programs
5. Marketing materials for the business
6. Letters of support

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Part III:
Social
Purpose
Business
Planning
Strategic
Questions
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NuStreams Conference and Culture Centre,
Km110, Abeokuta road, off Alalubosa Estate,
Ibadan, Nigeria.
Phone: 08023182881
www.thepatriots.network