How do I Manage a Social Enterprise?
- 1). Write a yearly budget that permits the enterprise to sustain itself. Financial independence should be the main goal when governments and other donors cut back philanthropic donations. By writing a budget detailing financial goals, social enterprises can insulate themselves from economic downturns. For social enterprises, sustainability means drawing income from the enterprise's programs and services to ensure financial independence.
- 2). Give the social enterprise's social mission and financial independence equal consideration. The dual nature of the bottom line concerns both a realistic cash flow that meets basic expenses and the enterprise's social impact. The essence of a social enterprise lies in the fact that the two bottom lines must be considered as one.
- 3). Organize cash flow to reject the nonprofit "dependency" model. In the past, nonprofits approached the same donors, government agencies and corporations for funding. In bad economic times, donors often cut nonprofit funding that might not be restored when the economy improves. As a response to dwindling funding opportunities, the central organizing principle of the organization must be geared to economic independence.
- 4). Organize a committee that analyzes the social enterprise's cash flow potential. To raise revenue, social enterprises can fill large market gaps avoided by for-profit enterprises and offer goods and services at lower prices. For example, education, environmental and religious programs can provide sources of revenue.
- 5). Use the social enterprise's name to your advantage. For groups like the United Way and the YMCA, immediate name recognition brings respectability and permanence that can be used to boost donations and gain entry into local civic events. For new social enterprises without name recognition, consider an advertising campaign to inform the public about the social enterprise's mission.
Source...