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Bringing strength to social enterprise final

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This workshop presented in conjunction with Mark Daniels, Social Traders (VIC), Joanne McNeill, Parramatta City Council (NSW) and Matt Noffs, Street University and Gideon Shoes (NSW) on Tuesday, 24 …

This workshop presented in conjunction with Mark Daniels, Social Traders (VIC), Joanne McNeill, Parramatta City Council (NSW) and Matt Noffs, Street University and Gideon Shoes (NSW) on Tuesday, 24 April 2012 explored social enterprise as a sustainable community building tool and shared information on how they operate sustainably.

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  • Customers are people or organisations who will buy your products or services. An enterprise cannot survive without customers, because it is through sales of goods and services that an enterprise generates most of its income. One of the most important things about business planning is to have an intimate understanding of your customer. In the following worksheet, identify your potential customers. Consider specific customer segments that you might want to target. Later, in the pre-feasibility study and business planning sections, you will use market research to test the hypotheses you have developed about your customers.
  • All businesses face competition. Even if you do not have any direct competitors within your industry, you might want to think more broadly about businesses or organisations that are competing for your customers’ time, attention and money, such as those offering substitute goods and services. You may be the only cafe in town, but you still have to compete with cinemas, bars, cafes in neighbouring towns and other businesses for the discretionary income of your customers. They are not competitors if they are not competing for the same customers and the same dollars. Where to find your competitors: Start with the Yellow Pages or Yellowpages.com to identify local competitors. Conduct a web search on the product/service that you offer – you might discover regional or international competitors. If your customers are governments or institutions, you might also think about what else they spend money on. If your idea is for a retail business, visit some other locations or just take a walk down the street. Speak to your potential customers. They will be able to tell you a lot about what they buy now and who from
  • Think of your total income as all the money that will be generated through sale of products and services, and from donations and grants. Your estimate of income from trading activity combines the total goods or hours of service you expect to sell and the price you think people are prepared to pay. Keep in mind that most people over-estimate the number of units they can sell at this stage, so being conservative is important. Ensuring that you are realistic could avoid difficulties down the track. Again, it is a good idea to check with similar businesses. Start by estimating the number of hours of service, or quantity of goods, you think you will be able to sell each week. Then multiply this by the number of weeks per year in which you think you will be able to sell that amount
  • Transcript

    • 1. Bringing Strength to Social Enterprise Tuesday, 24 April 2012
    • 2. TodayThis workshop will explore social enterprise as a sustainablecommunity building tool and share information on how theyoperate. Participants will have the opportunity to discuss ideaswith a panel of social enterprise practitioners and hear fromcolleagues who have established successful social enterprises.
    • 3. Today’s Speakers• Joanne McNeill, Parramatta City Council (NSW) – Bringing strength thru concepts• Mark Daniels, Social Traders (VIC) – Building awareness• Matt Gideon, Street University & Gideon Shoes (NSW) – What makes a Social Enterprise tick
    • 4. Liverpool CouncilStrengthening their Community Rebekah Richards Community Worker
    • 5. Bringing strength – today’s agenda• Bringing strength thru concepts – Joanne McNeill• Building awareness of social enterprises – Mark Daniels• What makes them tick – Matt Noffs• The Entrepreneur’s Pledge – Jodie Mitchell• Panel discussion
    • 6. Bringing strength thru concepts Joanne McNeillCommunity Capacity Building Officer Social Enterprise Parramatta City Council
    • 7. . . . what is ?social enterprises are businesses that trade for a social, environmental or cultural purpose . . .• generate a substantial portion of their income through trading• reinvest the majority of their profit / surplus (non-distributing)• include an asset lockSocial enterprise is about practice
    • 8. . . . the difference . . .. . between a social enterprise, a social entrepreneur and social innovation . . .
    • 9. broad spectrum . . .Diverse on three levels:• Form• Purpose• Markets
    • 10. legal forms . . .• Cooperatives, Associations and Mutuals• Fair Trade Organisations• Intermediate Labour Market Companies• Charitable Business Ventures• Social Firms• Community Enterprise• Community Development Finance Institutions• Australian Disability Enterprises• Hybrid• Important consideration – any relationship with parent nonprofit?
    • 11. purpose . . .Common motivations• employment - provide employment, training and support for marginalised groups; two types• service delivery - create or retain services in response to social or economic needs• income generation - generate profits to support other community or not for profit activities
    • 12. . . . social impact . . .• legitimacy• greater scrutiny• clear link between model & change want to see - Theory of Change• evolving field• no one approach• what does success look like
    • 13. markets . . .ExampleSalvo’s legal - http://salvos.org.au/salvoslegal/• full-time, self-sustaining legal practice specialising in property and transactional commercial law• difference is that fees paid by clients fund the operation of another firm, Salvos Legal Humanitarian - which operates to provide free legal advice and assistance to those most in need without any fee• first class commercial legal services are provided at a market competitive fee• aims to use its compassionate dedication, creativity, ingenuity and skill to fight against social injustices• means each procurement dollar delivers an additional benefit, beyond the service purchased
    • 14. . . . not business as usual . . .• blended inputs, blended returns• different types of markets – eg. BoP, not end user• different viability scenarios – balance of returns; reserves• social vs business costs
    • 15. so ….a strategy – nexus pointnot a program … what will you sell, who will pay for it?not a business … who are the beneficiaries, how will you know?. . . an AND approach… not about replacing
    • 16. Building awareness Mark DanielsLearning and Development Manager, Social Traders
    • 17. www.socialtraders.com.au © Social Traders Limited 2012
    • 18. What can we cover in 25 mins? How to test social enterprise ideas. The role of market
    • 19. A TALE OF TWO SOCIAL ENTERPRISES Social Enterprise A Social Enterprise BNeed There is long term A DES provider is finding it unemployment and social difficult to place people with issues in a neighbourhood mental health issues in area. employment
    • 20. MISSIONSocial Enterprise A Social Enterprise BWant to create a business that Want to create a tailoredwill create opportunities for the business that will createcommunity to get training and pathways to mainstreamemployment opportunities. employment for people with a mental illness
    • 21. IDEA GENERATIONSocial Enterprise A Social Enterprise BLead person identifies that a Lead person asks people fromcafé would be a great idea business backgrounds thebecause people in the question. What business willcommunity as it would be a allow us to achieve the missionmeeting place and provide and allow us to run a successfulemployment opportunities. Business long term? They conclude that a café would be the best because of the growing demand for hospitality staff and the sociable nature of the work.
    • 22. FROM THOUGHT TO ACTIONSocial Enterprise A Social Enterprise BA café site in a local library becomes They enlist expertise from a formeravailable and they apply for the lease. franchise operator to help them toIt will be a peppercorn rent and it is in develop a business plan and follow aa retail area of town. model of locating in a westfield mall.They win the tender process and begin They scope out opportunities in athe business growing centre in the SE of Melbourne.They write their business plan after They do foot traffic counts, they tastethey secure the lease. the coffee in every café in theThen they go hunting for money to supermarket, they taste and rate theoperate the business. food, record the price and the client group. They identify who there market will be and they seek out the funding to realise their idea.
    • 23. WHO DO YOU THINK SUCCEEDED AND WHY?
    • 24. OPPORTUNITIES FOR THE DEVELOPMENT OF BUSINESS Plugging the leaks Accessible contracts Gaps in the market Commercialising what you do Value Add Acquisition Replicate
    • 25. ONCE YOU HAVE SOME IDEAS YOU NEED TO SCREEN THEM ANDGET AN UNDERSTANDING OF THE MARKET
    • 26. CUSTOMER ANALYSIS Customer Group (you may have more than one)Who are theyHow many?Where are they?Is this group growing or shrinking?How much money do they have tospend?What are the things that affect theirpurchasing decision?Who do they buy from at themoment?How much do they currently pay?Why would they switch to you?
    • 27. INCOME - COMPETITORS• Competitors are anyone or anything that potentially takes revenue away from you• This includes people providing the same product/service as you as well as substitutes• What do I need to know about the competitors
    • 28. COMPETITOR ANALYSIS Competitor (there will be more than one – do this for each)NameWhat are the key products/services theyprovide to the customer?Where are they? (geographically ,web?)How much do they charge?Why do people buy from them?Do they focus on a target market? If so,describe it.Estimate what percentage of the totalmarket you think they have at the momentIs their market share growing, shrinking orsteady?How do they attract and win customers?What are their weaknesses and what canyou do better than them
    • 29. DOES MARKET ANALYSIS EVER END?
    • 30. INCOMEYour estimated volume of customers multiplied by their average payment will giveyou your estimated income.# customers ____________xwhat each of them will pay $_____________ =$___________ income (weekly/monthly/yearly) Page 30
    • 31. THE PLANNER
    • 32. THE SOCIAL ENTERPRISE BUILDER www.socialtraders.com.au
    • 33. www.socialenterprisefinder.com.au
    • 34. Thank YouMark.daniels@socialtraders.com.auwww.socialtraders.com.au
    • 35. What makes them tick – Matt Noffs Gideon Shoes & Street University
    • 36. The social entrepreneur’s pledge• I am a social entrepreneur.• I am following a dream, pursuing an opportunity, taking charge of my own destiny.• I am bringing something of value to society, making a job for myself and for others, and creating wealth that benefits my family, my community, my country, my world.• I am one of a movement of millions of (social) entrepreneurs and innovators who made Australia great, and who will continue to keep our economy going … and growing and innovative.• I am what I am because many people have helped me along on this journey.
    • 37. The Entrepreneur’s PledgeTherefore:
    • 38. The social entrepreneur’s pledge• I will tell my story, sharing my successes and failures, so that others taking the entrepreneurial path can learn.• I will strive to mentor an aspiring entrepreneur.• I will make my voice heard by those who make policy decisions that affect me and my business.• I will appreciate and celebrate my accomplishments, and the accomplishments of all my fellow social entrepreneurs.• I will give back to the society that helped me to be successful.• I will Build a Stronger Australia.
    • 39. BREAK for lunch
    • 40. Panel discussion• Joanne McNeill, Parramatta City Council (NSW) – Bringing strength thru concepts• Mark Daniels, Social Traders (VIC) – Building awareness• Matt Gideon, Street University & Gideon Shoes (NSW) – What makes a Social Enterprise tick
    • 41. Upcoming Development in SydneySocial Enterprises Sydney• Workshops• Mentoring• Peer2Peer Networks – Food & Food Service (Paddock to Plate) – Environmental -> reduce, re-use, recycle• Coaching• Pro Bono Legal Panel
    • 42. Thank you