ENTR4800 Class 3: Business Modelling for Social Enterprise

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Business Modelling for Social Enterprise …

Business Modelling for Social Enterprise

Guest speaker – Assaf Weisz, Executive Director, Young Social Entrepreneurs of Canada (YSEC)
Theory: What models exist for social enterprises? How do these models inform the structure and operations of the social venture? What are the key issues, tensions and considerations that make these models applicable to specific contexts?
Practice: How can business model development be applied to the development of a social enterprise?

http://www.socialentrepreneurship.ca/entr4800/

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  • 1. ENTR 4800: Social Entrepreneurship Class 3: Business Modelling for Social Enterprise Monday, September 27, 2010 1
  • 2. Agenda •  Centre for Social Innovation •  What did we learn – Last Week? •  What are the components of a business model for social enterprise? •  Talk – Assaf Weisz (ED, Young Social Entrepreneurs of Canada) •  What did we learn – Today? •  Next week 4
  • 3. Last Week – What did we learn? 5
  • 4. Business Modelling for Social Enterprise… 6
  • 5. A Caveat… “Business “Business Model” Plan” 7
  • 6. A Second 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… 8
  • 7. A Third Caveat… We’ll be designing business models for… …and… 9
  • 8. user networks! franchising! freemium! web ads! etc…etc…etc…! licensing! retail! micro-finance! subscription! loyalty! open-source! nonprofit (donation)! solution shops! 10!
  • 9. 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 11
  • 10. 12
  • 11. What you need to care about is… –  Customer “Pain” –  Customer Segmentation 13
  • 12. 14
  • 13. Who are Grameen Bank’s customers? What does their Empathy map look like? 15
  • 14. 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 –  Customer Utility 16
  • 15. Quick… What is the last thing you bought? 17
  • 16. 18
  • 17. What is Grameen Bank’s value proposition? 19
  • 18. What you need to care about is… –  Customer “touch points” 20
  • 19. How does Grameen Bank “touch” its customers? 21
  • 20. What you need to care about is… –  Customer acquisition and retention 22
  • 21. What relationships has Grameen Bank made with its customers? 23
  • 22. What you need to care about is… –  Cash!!! (specifically, how cash flows into the enterprise) –  Pricing models 24
  • 23. How does Grameen Bank bring in cash? 25
  • 24. What you need to care about is… –  Assets… –  …and how these assets create value 26
  • 25. What are Grameen Bank’s key assets? 27
  • 26. What you need to care about is… –  Actions (specifically, the actions you plan to take to generate value) 28
  • 27. What are Grameen Bank’s key activities? 29
  • 28. What you need to care about is… –  How you partner –  What you partner on 30
  • 29. What makes a good partnership? 31
  • 30. Common A Vision! Commitment to Invest in the Partnership! Same Core Values! Discreet Missions! 32
  • 31. Who does Grameen Bank partner with? 33
  • 32. What you need to care about is… –  Fixed costs, variable costs, economies of scale… –  …basically, all the stuff you learned in Finance class 34
  • 33. What does Grameen Bank’s cost structure look like (in simple terms)? 35
  • 34. 36
  • 35. So…how does your Business Model for Grameen Bank compare??? 37
  • 36. &! Le nding g! tin nal! C ollec Perso $$! rn- ! $$! Gove Micro ! ! ment ! s Poor -! -loan pr Entre ! s eneur s! -Branche ! es d! -Bran al! B ranch it -Cap le! - Peop st! ital I ntere -Cap ! ! s Rates cost 38
  • 37. 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 39
  • 38. Break 40
  • 39. Assaf Weisz… 41
  • 40. What did we learn? 42
  • 41. Next Week •  Hedvig Alexander – Have Questions Ready!! •  Deliverable: The “revenue” side of your business model (and your motivations, mission, vision and values) •  Readings 43
  • 42. Notes –  The business model template and process presented herein is based in on Alexander Osterwalder’s Business Model Canvas (www.businessmodelgeneration.com) 44