Social enterprises have a mixed record of performance – we believe it’s because their very descriptor gives them the ‘wiggle room’ to underperform.
Step 1: Drop the term ‘social’ completely, and start referring to the ‘enterprise’ as the business that it is.
The very term ‘business’ is easily understood, and brings with it a disciplined labour force, and a set of tools and analytics that’s focused on achieving results.
Step 2: Get your business to break even.
The first such tool – and arguably the most important – is the break even analysis.
It’s a useful tool to assess market viability, pricing dynamics, internal requirements, marketing strategy, and HR strategy – all without spending a nickel.
Run your proposed social business through this framework: