The anatomy of a social enterprise is a little different than for a typical tech startup. In this talk, Melinda reveals a new "Business Model Canvas" adapted specifically for startups with a social or environmental mission. Talk given by Melinda Briana Epler, CEO & Founder of Change Catalyst, at the H3 Conference in Puerto Rico, November 2015.

1. The Business Model Canvas for Social Entrepreneurs
by: Melinda Briana Epler
All Rights Reserved. © Change Catalyst, reproduce only with permission.

2. EMAIL: melinda@changecatalyst.co
TWITTER: @mbrianaepler
Founder & CEO, Change Catalyst
Change Catalyst empowers inclusive and
sustainable innovation – through education,
mentorship and funding.

3. 3
We explore comprehensive solutions to tech diversity and inclusion.
techinclusion.co

4. WorldChangers Platform
Our online platform empowers women to solve the
world's toughest social and environmental problems
through social entrepreneurship and impact investment.

5. What is a Social Enterprise?
Solves real social problems through
innovation. And measures success this way.
Mission-driven. Its not a side project, it’s
what you do and how you do it.
Makes money. Social entrepreneurs find a
way to make money and make a difference.

6. Who is a Social Entrepreneur?
Muhammed Yunus, Grameen Bank
Nobel Prize Winner, 2006.
1. Grew up in rural Pakistan.
2. Wanted to eradicate poverty.
3. Started making small loans to poor
business people, with lower interest rates.
4. Grew it into an international bank, over $11
billion in loans – with a 96% recovery.
5. The bank is owned by the borrowers,
mostly women.

7. Eileen Fisher, Eileen Fisher Inc.
1. Grew up in a small town in Illinois.
2. Wanted to have comfortable clothes.
3. Realized later she could change the world
too.
4. Founded in 1984 with $350, now $350M
in annual revenue
5. Changing the fashion industry
– Sustainable fabrics
– Supply chain audits
– “Real” models
– Clothing recycling program
– Girls leadership program
– Grants to women entrepreneurs
Who is a Social Entrepreneur?

8. Who is a Social Entrepreneur?
Neil Blumenthal, Andrew Hunt,
David Gilboa & Jeffrey Raider
Warby Parker
1. Went to college together.
2. Wanted to make glasses more affordable.
3. Figured out how to manufacture
themselves to keep prices down.
4. Give one pair away to the poor.
5. Founded the company in the school’s
incubator in 2010.
6. Just finished Series B.
7. Company valued at $1.2B.

9. Who is a Social Entrepreneur?
Rose Broome, HandUp
1. Walked past a homeless woman and
wanted to fix urban poverty.
2. Four months later found a tech partner at a
hackathon and they launched a platform.
3. Crowdfunding for basic needs, helping lift
people out of poverty.
4. Went through Tumml accelerator, raised
$850k in first angel round, working on
another.
5. Working toward a long-term sustainable
business model.

10. Building a Social Entrepreneur Ecosystem
Rules of Thumb
1. Make it Puerto Rican. Solve local problems for
local people.
2. Make it Inclusive and Sustainable.
3. Solve locally, then scale globally. You’re not
alone. Go Big and Change the World!

11. What is the Business Model Canvas?
The Business Model Canvas
Revenue Streams
Channels
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Key Resources
Cost Structure
Customer Relationships
Designed by: Date: Version:Designed for:
designed by: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
is your business more
Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)
Value Driven (focused on value creation, premium value proposition)
sample characteristics
Fixed Costs (salaries, rents, utilities)
Variable costs
Economies of scale
Economies of scope
Through which Channels do our Customer Segments
want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
channel phases
1. Awareness
How do we raise awareness about our company’s products and services?
2. Evaluation
How do we help customers evaluate our organization’s Value Proposition?
3. Purchase
How do we allow customers to purchase specific products and services?
4. Delivery
How do we deliver a Value Proposition to customers?
5. After sales
How do we provide post-purchase customer support?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
For whom are we creating value?
Who are our most important customers?
Mass Market
Niche Market
Segmented
Diversified
Multi-sided Platform
What type of relationship does each of our
Customer Segments expect us to establish
and maintain with them?
Which ones have we established?
How are they integrated with the rest of our
business model?
How costly are they?
examples
Personal assistance
Dedicated Personal Assistance
Self-Service
Automated Services
Communities
Co-creation
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
catergories
Production
Problem Solving
Platform/Network
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
types of resources
Physical
Intellectual (brand patents, copyrights, data)
Human
Financial
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquairing from partners?
Which Key Activities do partners perform?
motivations for partnerships
Optimization and economy
Reduction of risk and uncertainty
Acquisition of particular resources and activities
What value do we deliver to the customer?
Which one of our customer’s problems are we
helping to solve?
What bundles of products and services are we
offering to each Customer Segment?
Which customer needs are we satisfying?
characteristics
Newness
Performance
Customization
“Getting the Job Done”
Design
Brand/Status
Price
Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability
types
Asset sale
Usage fee
Subscription Fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising
fixed pricing
List Price
Product feature dependent
Customer segment
dependent
Volume dependent
dynamic pricing
Negotiation (bargaining)
Yield Management
Real-time-Market
strategyzer.com
• Developed by Alexander
Osterwalder in 2008
• Popularized by the book
Business Model Generation
• Widely used by
entrepreneurs to get their
ideas on paper so they can
test them
• Download it at
businessmodelgeneration.com

12. It has been adapted for different use cases.

13. It has been adapted for social entrepreneurs… sort of.
PURPOSE
PROBLEM SOLUTION
KEY METRICS
UNIQUE VALUE
PROPOSITION
UNFAIR ADVANTAGE
CHANNELS
CUSTOMER SEGMENTS
COST STRUCTURE FINANCIAL SUSTAINABILITY
IMPACT
V1.04 Available at www.socialleancanvas.com
Existing Alternatives High Level Concept Early Adopters
SocialLeanCanvasisadaptedfromTheLeanCanvas(www.leancanvas.com)whichisinturnadaptedfromTheBusinessModelCanvas(www.businessmodelgeneration.com)andislicensedundertheCreativeCommonsAttribution‐ShareAlike3.0Un-portedLicense.

14. The most consistent question I get from social entrepreneurs:

15. The Business Model Canvas shows you a possible path.

16. Vision What change do you wish to see in the world?
Problems
What’s keeping your vision from
happening?
Mission
What is your unique solution?
What do you do, and for whom?
Key Impact Stakeholders
Who holds the key to unlock your
levers? Who needs to change in
order to solve these problem?
Levers
What is the smallest lever you can
move to solve this problem?
<< think “trim tab”
Value Proposition
How are you delivering value to your customers?
Why will people invest in you?
Customers
Who will pay you to do this?
Create personas so your team
understands them intimately.
Unique Advantage
How are you solving these problems
in a unique way that is better than
others?
Cost Structure
How much will it cost
to deliver your
solution?
Revenue Streams
How will you make
money? (Make this
diverse.)
Collaborators
Who will you partner with to make
this work?
Impact Metrics
How will you measure success and
hold yourselves accountable for your
mission?
Channels
How will you reach your customers
in a scalable way?
Team
Who are the first 3-5 people you
need to help you?
The Social Entrepreneur’s Canvas

17. Vision What change do you wish to see in the world?

18. Vision What change do you wish to see in the world?
A world where innovation is inclusive and sustainable.

19. Vision What change do you wish to see in the world? Pick one!

20. Problems What’s keeping your vision from happening?

21. Problems What’s keeping your vision from happening?
• Center of innovation (tech) leaves people out
• Not enough women leading businesses
• When women start businesses, they don’t receive
funding to scale them
• Not enough support for social entrepreneurs
• ….

22. Lever What is the smallest lever you can move to solve this problem?

23. Lever What is the smallest lever you can move to solve this problem?
“Trim Tab”

24. Lever What is the smallest lever you can move to solve this problem?
“Trim Tab”

25. Lever What is the smallest lever you can move to solve this problem?
“Trim Tab” Accelerator for women social entrepreneurs.

26. Key Impact Stakeholders
Who holds the key to unlock your levers? Who needs to change in order to solve these problems?

27. Mission What is your unique solution? What do you do, and for whom?

28. Customers Who will pay you to do this? Create personas so your team understands them intimately.

29. Value Proposition
How are you delivering value to your customers? Why will people invest in you?

30. Unique Advantage
How are you solving these problems in a unique way that is better than others?
http://www.inc.com/steve-blank/a-new-way-to-look-at-competition.html

31. Cost Structure How much will it cost to deliver your solution? Create a rough budget.

32. Revenue Streams How will you make money? (Make this diverse.)

33. Collaborators Who will you partner with to make this work?

34. Impact Metrics
How will you measure success and hold yourselves accountable for your mission?

35. Channels How will you reach your customers in a scalable way?

36. Team Who are the first 3-5 people you need to help you? (Make it diverse.)

37. Always Start With Your Vision.

38. Vision What change do you wish to see in the world?
Problems
What’s keeping your vision from
happening?
Mission
What is your unique solution?
What do you do, and for whom?
Key Impact Stakeholders
Who holds the key to unlock your
levers? Who needs to change in
order to solve these problem?
Levers
What is the smallest lever you can
move to solve this problem?
<< think “trim tab”
Value Proposition
How are you delivering value to your customers?
Why will people invest in you?
Customers
Who will pay you to do this?
Create personas so your team
understands them intimately.
Unique Advantage
How are you solving these problems
in a unique way that is better than
others?
Cost Structure
How much will it cost
to deliver your
solution?
Revenue Streams
How will you make
money? (Make this
diverse.)
Collaborators
Who will you partner with to make
this work?
Impact Metrics
How will you measure success and
hold yourselves accountable for your
mission?
Channels
How will you reach your customers
in a scalable way?
Team
Who are the first 3-5 people you
need to help you?
The Social Entrepreneur’s Canvas

39. How to use the Canvas.
Iteration
Loop
Design
TestLearn

40. Next Steps
Verbally test it.
Iterate.
Test it on paper.
Iterate.
Test an MVP. What’s
the simplest way to
test some of your
assumptions, show
traction? Iterate.

41. Iteration is constant.
Stick with your mission but don’t be afraid to pivot your value proposition.
Iteration
Loop
Design
TestLearn

42. Thank You
Melinda Briana Epler, CEO & Founder
melinda@changecatalyst.co
Changecatalyst.co