Social business or social enterprise needs careful planning. This slide series was developed and presented for the Social Business Launch Pad seminars by William P. Kittredge, PhD. The Social Business Launch Pad is a joint education seminar series co-sponsored by the Yunus Center at AIT and the Thai Social Enterprise Office http://www.tseo.or.th/

1. Business Planning
for Social Business
Prepared & Presented by:
William P. Kittredge, PhD
Social Business LaunchSocial Business Launch
PadPad

2. Why Have a Business Plan?
Value lies in the process of researching and thinking
about your business in a systematic way
The act and learning process of making a business
plan may make you a better entrepreneur
Allows you to avoid big mistakes by developing a
game plan

3. Why Have a Business
Plan?
One survey study shows
that companies who
completed business plans
were almost twice as
likely to effectively
expand their businesses
or acquire capital
compared to those who
didn’t.2

5. General Company
Description

7. Products and
Services
What factors will give your
product or services
competitive advantage or
disadvantage?
What are the pricing, fee, or
leasing structures of your
products or services?

9. Marketing Plan

10. Marketing Plan
Market Research
Why?  Make sure your business is on track
How?  Public information & gathering your own data
Economics:
What is the total size of your market?
What are its growth potential and opportunities?
What barriers to entry do face?
Product
For each product or service
 What are the most important features and why?
 What will the product do for the customer?

11. Marketing Plan
Customers:
Who are your target customers (businesses or
consumers)?
What are their characteristics (demographics)?
Competition
What products and companies will compete with you?
How will your Competitive Analysis look?

12. Marketing Plan

13. Marketing Plan
• Niche
• How does your company fit into the world?
• Strategy
• Promotion: How will you get the word out to
customers?
• Promotional Budget: How much will it cost to get
the items needed for promotion?
• Location: Is your location important to costumers?
Is it convenient?
• Distribution Channels: How will you sell your
products/services?

14. Marketing Plan: Sales
Forecast Spreadsheet
 Attaches numbers to
your plan
 Based on historical
sales, marketing
strategies, market
research, industry data
 Two forecasts: “best
guess” and “worst case”

16. Operational Plan

18. Management and
Organization
• Who will manage the business on a day to day basis?
• What experience does that person bring to the business?
• What special and distinctive competencies?
• What is the plan if this person is lost in incapacitated?

19. Management and
Organization
• Identify and list professional and advisory
support
– Board of directors
– Management advisory board
– Attorney
– Accountant
– Insurance agent
– Banker
– Consultant(s)
– Mentors and key advisors

21. Personal Financial
Statement
Shows assets and
liabilities held
outside the
business and
personal net worth.

23. Startup Expenses and
Capitalization
• Estimate expenses. Will you have sufficient capital?
• Your business may cost more than you anticipate
• Add “padding” to the budget
• Add separate “contingencies” to account for the unexpected
• Explain your research, sources, amounts, and terms of
proposed loans.
• Explain how much each investor contributes and what
percent of ownership each will have.

24. Expenses and Capitalization
Spreadsheet

25. Budgeting
C:UsersWilson1DropboxSplash SEBusiness planExamples for Presen

27. Financial Plan
• 12-month profit and loss projection What
it will take to make a profit and be
successful?
• 3- year profit and loss projection
Optional projection if company wants to
forecast longer term
• Projected cash flow Plan how much you
need before startup for preliminary
expenses, operating expenses, and reserves

28. Financial Plan
Profit and Loss Projections

29. Financial Plan
• Opening day balance sheet what
assets the company holds, what its
liabilities are
• Break-even analysis  predicts sales
volume at a given price required to
recover total costs

30. Financial Plan

31. Financial Plan
Break-Even Point Q = Fixed Cost / (Unit Price - Variable Unit Cost)

33. Appendices
• Include details, studies, graphs and charts in
your business plan, for example:
• Brochures and advertising materials
• Industry and market research studies
• Blueprints and plans
• Maps and photos of location
• List of equipment owned and to be purchased
• Copies of leases and contracts
• Letters of support
• List of assets available for a loan

35. Refining the Plan
For Raising Capital
Bankers: Amount of loan, how the funds will be used,
what will it accomplish, requested payment terms
Investors: Funds needed for short term and long term,
how the funds will be used, estimated return on
investment, exit strategy for investors, financial reporting

36. Refining the Plan
For Types of Business

37. Refining the Plan
For Types of Business

38. Refining the Plan
For Types of Business

39. Refining the Plan
For Types of Business

41. Executive Summary
• Write this section last with 2 pages or fewer
• Explain the fundamentals of the business:
• What is your product?
• Who are your customers?
• Who are the owners?
• What do you think the future holds?
• Enthusiastic, professional, complete, and
concise.

42. ReportingReporting
ResultsResults

43. Monitoring & Impact
Measurement : Social ROI
ROI refers to a single ratio - SROI is more like TBL reporting.
Value based, in part, perception and experience of stakeholders
Employs indicators of change
Where possible, uses monetary values for these indicators.
It is an emerging management discipline: a skill set for the
measurement and communication of non-financial value.

44. Monitoring & Impact
Measurement : Social ROI
Example: Water purification systems social business
Impacts:
Educational
Financial
Public Health
Indicators:
Attendance and Test Scores; also testimony of teachers
Displacement of prior costs, including health care
Improvement in public health; measured as lower cost to
government and charity provided healthcare systems

45. Social ROI:
Monetisation principle
Practical benefits of Monetary proxies :
it induces transparency since it precipitates the clarification of which
values have been included and which have not been included;
it permits sensitivity analysis to show which assumptions are more
important in that the result is more affected by changes in some
assumptions than others;
it helps identify the critical sources of value and so streamlines
performance management.

46. Social ROI:
Monetisation principle
Practical benefits of Monetary proxies :
it induces transparency since it precipitates the clarification of which
values have been included and which have not been included;
it permits sensitivity analysis to show which assumptions are more
important in that the result is more affected by changes in some
assumptions than others;
it helps identify the critical sources of value and so streamlines
performance management.

47. Social ROI:
Monetisation principle
Don't get crazy with the numbers
Some things cannot be quantified or monetised
How many kilos do you love your Mother?
How many meters do you love Thailand?
Who would be silly enough to ask this type of question?

48. Social BusinessSocial Business
Action PlanAction Plan

49. Action Plan
1. Clearly define your objective: it must be measurable and achievable.
2. Decide who is to be involved in your action-planning group.
If your objective is a small, personal goal, it may be only you.
However, if it is a company objective you may want to include
people who will be involved in carrying out the action plan.
3. Hold a brainstorming session with the participants to establish all
possible courses of action that must be taken in order to achieve the
desired objective.

50. Action Plan
4. Develop an action plan according to the template handed out in class
or something that works for you that contains the same information.
5. Review the plan thoroughly to check that it is complete.
6. Implement your action plan.
7. Track the progress achieved and tick off completed tasks.
BE HONEST
8. Review and amend the action plan on an on-going basis.
9. Communicate with all of the people involved throughout the process.

51. Action Plan
8. Review and amend the action plan on an on-going basis.
BE RUTHLESS
9. Communicate with all of the people involved throughout the process.

52. Funding SocialFunding Social
BusinessBusiness

53. Social Business is Still Business
The addition, or substitution, of a 'social good' to, or for, 'profit'
• Changes the purposes (outcomes) of the activity
•Intention to create a 'social good' rather than 'profit' for
investors
• Does not change the mechanics of enterprise
•Cannot survive if cannot pay the bills
•Must still recruit, train, support and manage people
•Must acquire financing

54. Social Business Financing
Crowd-sourcing very popular
Good source for finding potential capital funders:
Google: Charity Navigator
DAF Direct
Indiegogo
Kickstarter
StartSomeGood.com

55. Social Business Financing
Direct purchase support:
Google: Shopfunder
Ebay Store
Micro-loans:
Google: Kiva.org
donationpay.org

56. Social Business Financing
Local and National Business Groups
– social business funding may be part of their CSR or could be
Banks doing CSR
International Corporations in Thailand, e.g. Toyota
Do Not Be Shy!!

57. Social Business Financing
Where to learn how:
Google: RocketHub Success School
AIT Yunus Center
StartSomeGood Crowdfunding 101

58. Final ThoughtsFinal Thoughts

59. Social Business Networking
Networking globally with social entrepreneurs:
Facebook:
Social Business and Economics
https://www.facebook.com/SocialBusiness.org?fref=ts
Social Business Student Forum:
https://www.facebook.com/SBSForum?fref=ts