business model
All kinds of social entrepreneurships become very popular these days. Especially young people and people who have just graduated and want to help and add something to their community. Of course there are a lot of ways of helping the community by a social entrepreneurship, and because of this variety there are also a lot of ways to collect enough funding.
A social business can choose to be a for-profit or a non-profit organization. For-profit businesses must find funding by investors and will be repaid in equity or dividends. This way it will be not just beneficial but also profitable.
For a nonprofit business their funding comes from either donations of individual people or from bigger companies. Instead of a return in equity or dividends they expect a social return.
For making and understanding a business model of a social entrepreneurship they are two key benefits:
1. It will help you to understand, discuss, articulate and design all the ins and outs of the company in a ordered way.
2. It will help you to develop and test your company for the actual impact your business will have for the community.
If a young company starts with a good, clear business model, they are able to foresee a great amount of their upcoming challenges and already start to come up with the solutions. Also having a proper business model will make your social business sustainable financially and for their social aspect.
As you can see on the model below, there are 10 different segments. Each segment says a lot about a business and having this model filled in properly and complete will help you to never lose track.
For each segment in the business model you can also write down what it does for the commercials aspects within the company and what kind of impact that has for the company itself.
A social business can choose to be a for-profit or a non-profit organization. For-profit businesses must find funding by investors and will be repaid in equity or dividends. This way it will be not just beneficial but also profitable.
For a nonprofit business their funding comes from either donations of individual people or from bigger companies. Instead of a return in equity or dividends they expect a social return.
For making and understanding a business model of a social entrepreneurship they are two key benefits:
1. It will help you to understand, discuss, articulate and design all the ins and outs of the company in a ordered way.
2. It will help you to develop and test your company for the actual impact your business will have for the community.
If a young company starts with a good, clear business model, they are able to foresee a great amount of their upcoming challenges and already start to come up with the solutions. Also having a proper business model will make your social business sustainable financially and for their social aspect.
As you can see on the model below, there are 10 different segments. Each segment says a lot about a business and having this model filled in properly and complete will help you to never lose track.
For each segment in the business model you can also write down what it does for the commercials aspects within the company and what kind of impact that has for the company itself.