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

2. Two purposes: self-awareness and communication to prospective
share/stakeholders

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?

7. Use data

8. What

9. State the problem you
are trying to address

10. Explain your big idea

11. MAKE A CASE
for why we need it

12. Who

13. What makes you unique? Who
People power ideas else do you need?

14. How

15. Social, but still business! Not just costs, but revenues
too!

16. Estimating revenues

17. Estimating revenues
•possibly the hardest part of a BP!

18. Estimating revenues
•possibly the hardest part of a BP!
•what drives it? Metrics are appreciated

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

22. Estimating costs

23. Estimating costs
•much easier, still not easy

24. Estimating costs
•much easier, still not easy
•highlight your costs (efficiency) advantages

25. Equilibrium

26. Equilibrium
•economic: revenues > costs

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

30. $
revenue
cost
time

31. $
revenue
cost
r–c =
financial surplus
time

32. $
revenue
cost
r–c =
financial surplus
time
you need this much!

33. Some financial complications

34. Some financial complications
•investments imply costs now, yield returns later

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

38. Package

39. Metrics

40. Market segmentation

41. Timeline