Social entrepreneurship generally aims to deliver solutions that can amplify social impact, across individuals, communities, and regions. Scaling social innovation is not always straightforward, and includes a different set of considerations than starting a social enterprise.
4. Š Norm Tasevski & Karim Harji
The âScale Opportunityâ
The point in time when you have a critical choice:
grow substantially larger, stay purposely small, or quit
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5. Š Norm Tasevski & Karim Harji
The Entrepreneurial Life Cycle
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IDEA DEVELOPMENT PROOF OF CONCEPT START-UP SCALE REPLICATION EXIT
â˘âŻ Few/no critical decisions made
about business model
â˘âŻ Pre-revenue (no product, no
customers)
â˘âŻ Timing â typically a few months
â˘âŻ Preliminary business model
identified, but may change
quickly/fundamentally
â˘âŻ Pre-revenue (product to be
validated, customers to be
validated)
â˘âŻ Timing â typically <1 year
â˘âŻ First business model decided
upon (but could still change)
â˘âŻ First revenues (first product
launched, first customers IDâd)
â˘âŻ Timing â 1-2 years (or more)
â˘âŻ Business model solidifies (&
new business opportunities
emerge)
â˘âŻ Stable revenues (product
established, mature
understanding of customers)
â˘âŻ Timing â ongoing
â˘âŻ Business model in flux (minor/
major changes made
regularly)
â˘âŻ Revenues in flux (inconsistent)
â˘âŻ Timing - ??? (varies)
The Scale
Opportunity
6. Š Norm Tasevski & Karim Harji
How Do You Know Youâve Reached the
Scale Opportunity Point?
â˘âŻ Short answer:
â⯠You wonât know until you get thereâŚ
â˘âŻ Long answer:
â⯠Youâve overcome bumps in the road (imperfect product,
imperfect decision making, unstable cash flows)
â⯠You have a track record behind you (satisfied customers, refined
product offering, brand recognition in the market)
â⯠Your strategy conversations change (from âhow do we stabilize
the business?â to âhow do we grow the business?â)
â⯠In some cases, an âoutside forceâ emerges (a big funder/
investor looking to invest substantially, another company wanting to
partner/merge, etc.)
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8. Š Norm Tasevski & Karim Harji
There are Risks to ScalingâŚ
â˘âŻ Scaling too quickly without the âfundamentalsâ in place
â⯠There is a desire to scale much sooner than the business is
ready
â⯠Fundamentals:
1.⯠Systems (decision making, cash management, product
development, production, etc.)
2.⯠Financial resources (retained earnings, outside capital)
3.⯠Human resources (the ârightâ people deployed
effectively)
â⯠The risk: implosion (i.e. get too big too quickly that the systems
canât keep up)
â˘âŻ Scaling without a proper read of the market
â⯠You have a superficial/imperfect understanding of the market
â⯠The risk: financial ruin (i.e. the customers you were anticipating
donât materialize)
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9. Š Norm Tasevski & Karim Harji
Planning Around These Risks
â˘âŻ Plan Ahead
â⯠Conduct regular strategic planning
â⯠Be deliberate, not opportunistic (i.e. know when to say ânoâ to business opportunities)
â˘âŻ Stay Tuned into the Market
â⯠Do not assume you ever fully know who your customers are (constantly check in)
â⯠Question whether you are targeting the right customers
â˘âŻ Build the âRightâ Systems
â⯠Construct a rigorous decision making system
â⯠Establish core business standards (e.g. documentation, policies and procedures for making
and following through on decisions)
â⯠Hire the right people to manage the scale effort (experienced entrepreneurs)
â⯠Construct a rigorous information system, and collect data (CRM, online info tracking tools,
etc.)
â˘âŻ Stabilize your cash runway
â⯠Begin investing profits into a reserve
â⯠Seek outside capital for specific purposes (e.g. use of funds targeted to growth objectives)
â⯠Create a rigorous budgeting and financial tracking system
â˘âŻ Welcome Change!
â⯠Complacency = threat
â⯠Be fully committed to your strategy, but flexible in your approach
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11. Š Norm Tasevski & Karim Harji
Presentation guidelines
â˘âŻ Due Dates
â⯠Investment Pitch: Midnight on Sunday, July 21st
â˘âŻ Format
â⯠PowerPoint deck
â˘âŻ Time Allotment
â⯠12 min presentation (strict) â will give you 5 and 2 minute
warnings
â⯠6 min Q&A
â˘âŻ Grading
â⯠To be done by Karim and Norm
â⯠Judges will inform me, but not assign your grades
â˘âŻ Feedback from Judges
â⯠Norm will email his and judgesâ feedback shortly after the
class to integrate into angel investor pitch
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12. Š Norm Tasevski & Karim Harji
Timing
â˘âŻ Arrive by 6:30pm!!
â˘âŻ Group order will be assigned on the Monday prior
to the presentation
â˘âŻ At the end of the pitches, the judges will deliberate
(for 10 minutes)
â˘âŻ Judges will then provide feedback to the entire
class (and I will provide individual group feedback)
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13. Š Norm Tasevski & Karim Harji
Advice for your presentations
â˘âŻ Focus on the key components of the business
model, and highlight the key financial #s
â⯠Can you clearly explain how your business works? How it
makes money? How it generates social/environmental
change?
â˘âŻ Comfortably stick to the time allotment
â⯠In your practice, aim to deliver your presentation in 10-11
minutes
â˘âŻ Anticipate the investor questions
â⯠If you were investing your own money into the business,
what would you care to know about the business model?
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14. Š Norm Tasevski & Karim Harji
Contents for the PresentationâŚ
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â˘âŻ Overview and mission
â˘âŻ Management and
Advisors
â˘âŻ Problem
â⯠social issue being
addressed
â˘âŻ Size of the problem
â⯠how big is the social issue
â˘âŻ Solution
â⯠Hereâs how it worksâŚ
â˘âŻ Value proposition
â⯠Inc. social benefit
â˘âŻ Business model
â˘âŻ Competitive advantage
â˘âŻ Collaboration/
partnerships
â˘âŻ Marketing and Sales
â˘âŻ Financial projections
â˘âŻ Financial requirements