business plan for a social enterprise

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Social Enterprise Business Plan

The ability to affect positive change and tackle social or environmental issues is one of the most satisfying parts of owning a social enterprise.

A strong sense of purpose and the desire to change the world motivates social entrepreneurs to start this business. If you are ready to change the world, then start it with proper planning.

Need help writing a business plan for your social enterprise business? You’re at the right place. Our social enterprise business plan template will help you get started.

Free Business Plan Template

Download our free social enterprise business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Social Enterprise Business Plan?

Writing a social enterprise business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your business. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Describe what kind of social enterprise business you run and the name of it. You may specialize in one of the following social enterprise businesses:

• Fairtrade organizations
• Community development enterprises
• Socially responsible manufacturing
• Trading social enterprise
• Education and skills development enterprises
• Describe the legal structure of your social enterprise, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your social enterprise’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your social enterprise business from them. Point out how you have a competitive edge in the market.
• Regulatory Environment: List regulations and licensing requirements that may affect your social enterprise business, such as legal structure, registration & certification, taxation, employment & labor laws, etc.

Here are a few tips for writing the market analysis section of your social enterprise business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Eco-friendly household products
• Sustainable fashion items
• Job training
• Healthcare services
• Renewable energy products
• Explain the benefits: Explain in detail how your products and services have a positive impact on society or the environment. Be sure to highlight how they help in environmental protection, community empowerment, and sustainable development. To corroborate your claims, use specific examples or figures.
• Showcase the innovative side: Emphasize any unique features, technology integration, or distinctive value proposition your products or services may offer. Describe how they set your products apart from the competition and help you reach your goal of having a positive social impact.
• Additional Services: Mention if your social enterprise business offers any additional services. You may include services like education & training, consulting & advisory services, product service & customization, etc.

In short, this section of your social enterprise plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Pricing Strategy: Describe your pricing strategy—how you plan to price your products or services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, influencer marketing, brochures, email marketing, content marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include targeted marketing & segmentation, partnering with other local businesses, offering referral programs, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on bulk purchases, personalized service, etc.

Overall, this section of your social enterprise business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your social enterprise business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your business’s staffing requirements, including the number of employees or volunteers needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your social enterprise business. Your operational processes may include legal structure & compliance, resource management, operations & production, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your social enterprise business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your social enterprise business, and describe their roles and responsibilities in successfully running the business.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.

This section should describe the key personnel for your social enterprise services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your social enterprise business’s assets, liabilities, and equity.

This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your social enterprise business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample social enterprise business plan will provide an idea for writing a successful social enterprise plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our social enterprise business plan pdf .

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Frequently asked questions, why do you need a social enterprise business plan.

A business plan is an essential tool for anyone looking to start or run a successful social enterprise business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your social enterprise business.

How to get funding for your social enterprise business?

There are several ways to get funding for your social enterprise business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your social enterprise business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your social enterprise business plan and outline your vision as you have in your mind. .

What is the easiest way to write your social enterprise business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any social enterprise business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Social Enterprise Business Plan Template

Written by Dave Lavinsky

Social Enterprise Business Plan

You’ve come to the right place to create your Social Enterprise business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Social Enterprise businesses.

Below is a template to help you create each section of your Social Enterprise business plan.

Executive Summary

Business overview.

EmpowerU is a startup social enterprise located in Ogden, Utah. The business was founded by Matt and Lauren Goodwin, a couple who have personally placed over three hundred job seekers into viable positions of employment over the past ten years by working in a nationally-known employment agency group. Both Matt and Lauren secured thousands of dollars for their employer, who received a payment for every person successfully placed into employment. With outstanding reviews by employers and a large following of those who have been placed by Matt and Lauren, they’ve determined that they can give back to the city of Ogden by opening their social enterprise, EmpowerU.

EmpowerU will provide a full-service employment placement agenda, from the time they first receive a new applicant to the 6-month period after employment when the employer-employee review is completed. Each step of the interview preparation, interviewing process, and employment negotiation is focused on bringing a new employee into a personally upward bound position that will change their life for the better.

Product Offering

The following are the services that EmpowerU will provide for the potential employers:

• Extensive recruitment of job candidates to fulfill employer requests
• Pre-employment training
• Employment assistance in pay package negotiation
• Reasonable on-hire rates with sliding scale of percentages
• Monthly and yearly reviews and assessments of employee to service employer

The following are the services that EmpowerU will provide for the potential employees:

• Personal training leading to interviews and employment
• Testing to determine skills, abilities, temperament-style
• Resume construction
• Personal deportment training
• Interview techniques for a “win”
• Negotiation techniques for employment
• Personal management in an organization
• Time management skills
• After-hire review and further training, if required
• One-year assessment

Customer Focus

EmpowerU will target both potential employers and candidates as potential employees. To do so, they will target medium-to-large businesses within the Ogden area and residents within the Ogden area. EmpowerU will target human resource managers within the Ogden area. EmpowerU will also target community associations and governmental agencies with job training programs.

Management Team

EmpowerU will be co-owned and operated by Matt and Lauren Goodwin. They have recruited their former administrative assistants, Austin Maven, and Jeanie Parker, to help manage the office and operations of EmpowerU.

Matt Goodwin is a graduate of the University of Utah with a Bachelor’s degree in Business Management. Lauren Goodwin is a graduate of Utah State College, where she earned an Associate’s degree in Social Sciences. Matt and Lauren have been working at an Ogden-based employment recruiter agency for the past ten years. During that time, they observed and practiced the functions of candidate placement into employment positions. They successfully placed over three hundred job-seekers into employment. They now want to help job candidates who need a “hand up” in securing employment by using all their acquired skills to make a change for the good of the city and state.

Austin Maven will become the Office Manager and will oversee all day-to-day office functions. He will manage the accounting and payroll for the social enterprise, as well as the detailed requirements needed to satisfy the social enterprise financials.

Jeanie Parker will become the Operations Manager, assisting in the movement of people resources in and out of the business and overseeing the training and assistance programs.

Success Factors

EmpowerU will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of EmpowerU
• Comprehensive menu of services that benefit both the employers and the job candidates.
• Full support and training for potential employees
• Reviews and assessments of employee during monthly and yearly visits
• As a social enterprise, EmpowerU charges extremely reasonable rates for employee placement, making them the lowest-priced employment service in Ogden.

Financial Highlights

EmpowerU is seeking $200,000 in debt financing to launch its social enterprise business. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for EmpowerU.

Company Overview

Who is empoweru.

EmpowerU is a newly established, full-service job training and placement agency in Ogden, Utah. EmpowerU will be the most reliable, cost-effective, and effective choice for employers in Ogden and the surrounding communities who seek employees who are eager to establish a better personal life for themselves. EmpowerU will provide a comprehensive menu of job training, placement and review services for any job candidate and business to utilize. Their full-service approach includes a comprehensive array of services that benefit both the job candidate and hiring company.

  EmpowerU will be able to provide job candidates for a wide spectrum of potential employers. The team of professionals are highly qualified and experienced in employee placements and training and reviews of those employees. EmpowerU removes all headaches and issues of seeking qualified personnel and ensures all issues are taken care of expeditiously, while delivering the best customer service.

EmpowerU History

EmpowerU is owned and operated by Matt and Lauren Goodwin. Together, they have personally placed over three hundred job seekers into viable positions of employment over the past ten years by working in a nationally-known employment agency group. Both Matt and Lauren secured thousands of dollars for their employer, who received a payment for every person successfully placed into employment. With outstanding reviews by employers and a large following of those who have been placed by Matt and Lauren, they’ve determined that they can give back to the city of Ogden by opening their social enterprise, EmpowerU.

Since incorporation, EmpowerU has achieved the following milestones:

• Registered EmpowerU, LLC to transact business in the state of Utah.
• Have a contract in place for a 10,000 square foot office in a prime downtown building location.
• Have reached out to numerous former associates and people they placed to include EmpowerU any time they search for new employees.
• Began recruiting a staff of three and two office personnel to work at EmpowerU.

EmpowerU Services

Industry analysis.

The social enterprise industry is expected to grow over the next five years to over $1 billion. The growth will be driven by an increased recognition of the need to assist in improving the lives of others within the world. The growth will be driven by an increased desire to serve the world by using talents and time to build social enterprise businesses. The growth will be driven by the popularity of including a “social awareness” facet within corporate mission statements. Costs will likely be reduced as social enterprises seek to reduce profits and increase services. Costs will likely be reduced as businesses increase voluntary funding for social enterprises.

Customer Analysis

Demographic profile of target market.

Customer Segmentation

EmpowerU will primarily target the following customer profiles:

• Medium-to-large businesses
• Residents of Ogden
• Human resource managers
• Community associations
• Governmental agencies

Competitive Analysis

Direct and indirect competitors.

EmpowerU will face competition from other companies with similar business profiles. A description of each competitor company is below.

Home Companion Care Services

Home Companion Care Services is a full-service placement agency of caregivers. The primary target market consists of elderly individuals who require in-home care and people with disabilities who need assistance with daily activities. Home Companion Care Services also engages with families seeking compassionate support for their loved ones. While services are not medically related, services may include medication reminders, running errands, purchasing and preparing food, bathing and personal grooming and other essentials for daily living.

Home Companion Care Services was started by Liam Gallagher, who saw a gap in the employment of caregivers when his mother required a caregiver and the availability for one was extremely limited. He also noted that most caregivers were not paid enough to make their lives sustainable. With this in mind, he started Home Companion Care Services as a social enterprise to invest in making the lives of the elderly and disabled better, as well as the lives of the caregivers enriched. With these positives at the forefront, Home Companion Care Services was started six years ago and continues to build momentum at this time. Fees for placement of caregivers is modest and reasonable in comparison to competitors.

Heads-Up Auto Repair

Heads-Up Auto Repair was started in 2020 by Neil Patterson, the owner of an auto repair chain in Utah. When Neil noted that several viable auto repairmen did not have employment due to former prison records, he started the social enterprise, “Heads-Up Auto Repair,” as a way to enrich the lives of these qualified repairmen, while earning a profit that would enrich their lives. The program for job training contains the phrase, “Heads Up,” as in “holding one’s head up high with pride in one’s work and the completion of that work successfully”.

Heads-Up Auto Repair serves customers throughout the state of Utah, where location managers are specially trained to assist repairmen in various aspects of customer service, team-bonding, personal skills and education, English-as-a-second-language training, and other services that increase the likelihood of the individuals continuing to excel in both the repair services they provide, but with an increased confidence in their lives overall, as well.

Animals Gone Wild

Animals Gone Wild is a wildlife viewing business that is a social enterprise located thirty miles from Ogden, Utah. Animals Gone Wild was started in 2010 by Amber Stenson, who determined that wild animals should live in the wild, even if their lives started in an enclosed zoo exhibit or other enclosed experience. Amber began a fundraising campaign to build and maintain the wild existence arenas for several wild animals, encouraging volunteers to serve the animals with her throughout their lives. Animals Gone Wild charges a fee for visitors to ride a trolley through the “villages” where various species of wild animals live. Payments by visitors covers the costs of caring for and feeding the animals, while fundraiser campaigns pay for the structures, buildings and care of the Animals Gone Wild structural needs.

Competitive Advantage

EmpowerU will be able to offer the following advantages over their competition:

• Comprehensive menu of services that benefit both the employers and the job candidates
• As a social enterprise, EmpowerU charges extremely reasonable rates for employee placement, making them the lowest-priced employment service in Ogden

Marketing Plan

Brand & value proposition.

EmpowerU will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a comprehensive array of services benefiting employers, employees, and the greater Ogden population
• Intensive training and preparation for job candidates, far beyond those of competitors
• Unique reviews and assessments of employees during monthly and yearly visits

Promotions Strategy

The promotions strategy for EmpowerU is as follows:

Word of Mouth/Referrals

EmpowerU has built up an extensive list of contacts over the years by providing exceptional service and expertise to their clients and personal associates. Several former employer clients will follow the Goodwins in their new social enterprise to secure employees and will refer EmpowerU to their associates.

Professional Associations and Networking

EmpowerU will extensively target the professional associations and governmental agencies within the city of Odgen to inform and invite potential employers to seek qualified employees through EmpowerU.

Social Media Outreach

Through several social media channels, prospective employees with a wide variety of skills will be invited to reach out to EmpowerU for job training and placement. Invitations via social media will also invite employers of private companies and governmental agencies, particularly human resources managers, to engage with EmpowerU to place employees into advantageous roles.

Website/SEO Marketing

EmpowerU will fully utilize their website. The website will be well organized, informative, and list all the services that EmpowerU provides. The website will also list their contact information and offer an online reservation system for potential employees who would like to talk with or visit the EmpowerU offices. The website will engage SEO marketing tactics so that anytime someone types in the Google or Bing search engine “job recruitment company” or “employment agency near me”, EmpowerU will be listed at the top of the search results.

The pricing of EmpowerU will be moderate and below competitors so employer clients will feel they receive excellent value when engaging new hires as a result of their services.

Operations Plan

The following will be the operations plan for EmpowerU. Operation Functions:

• Matt Goodwin will be the co-owner and President of the company. He will oversee all employer client relations.
• Lauren Goodwin will be the co-owner and Vice President of the company. She will oversee the recruiting of potential job candidates.

Milestones:

EmpowerU will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts
• 6/1/202X – Finalize employment contracts for EmpowerU clients
• 6/15/202X – Begin networking at industry events
• 6/22/202X – Begin moving into EmpowerU office
• 7/1/202X – EmpowerU opens its office for business

Financial Plan

Key revenue & costs.

The revenue drivers for EmpowerU are the fees they will charge to employer clients for their employee placement services.

The cost drivers will be the overhead costs required in order to staff EmpowerU. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

EmpowerU is seeking $200,000 in debt financing to launch its social enterprise. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Employer Clients Per Month: 30
• Average Revenue per Month: $60,000
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Social Enterprise Business Plan FAQs

What is a social enterprise business plan.

A social enterprise business plan is a plan to start and/or grow your social enterprise business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Social Enterprise business plan using our Social Enterprise Business Plan Template here .

What are the Main Types of Social Enterprise Businesses? 

There are a number of different kinds of social enterprise businesses , some examples include: Trading social enterprise, Financial social enterprise, and Non-governmental organizations (NGOs) and charity social enterprise.

How Do You Get Funding for Your Social Enterprise Business Plan?

Social Enterprise businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Social Enterprise Business?

Starting a social enterprise business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Social Enterprise Business Plan - The first step in starting a business is to create a detailed social enterprise business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your social enterprise business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your social enterprise business is in compliance with local laws.

3. Register Your Social Enterprise Business - Once you have chosen a legal structure, the next step is to register your social enterprise business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your social enterprise business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Social Enterprise Equipment & Supplies - In order to start your social enterprise business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your social enterprise business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Social Enterprise Business Plan Template

Written by Dave Lavinsky

Social Enterprise Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their social enterprise businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a social enterprise business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Social Enterprise Business Plan?

A business plan provides a snapshot of your social enterprise business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Social Enteprise

If you’re looking to start a social enterprise business, or grow your existing social enterprise business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your social enterprise business in order to improve your chances of success. Your social enterprise business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Social Enterprise Businesses

With regards to funding, the main sources of funding for a social enterprise business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for social enterprise businesses.

Finish Your Business Plan Today!

How to write a business plan for a social enterprise.

If you want to start a social enterprise business or expand your current one, you need a business plan. Below are links to each section of your social enterprise business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of social enterprise business you are operating and the status. For example, are you a startup, do you have a social enterprise business that you would like to grow, or are you operating social enterprise businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the social enterprise industry. Discuss the type of social enterprise business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of social enterprise business you are operating.

For example, you might operate one of the following types of social enterprise businesses:

• Trading social enterprise : this type of social enterprise refers to cooperatives, collectives, and other organizations that are worker or employee-owned. This type of ownership structure allows a higher degree of economic resiliency compared to a traditional organization.
• Financial social enterprise: this type of social enterprise includes credit unions, cooperative banks, and revolving loan funds, which are all membership-owned. In other words, the money deposited from a member is used to help other members who may need financial assistance.
• Non-governmental organizations (NGOs) and charity social enterprise: this type of social enterprise businesses are usually created to support a specific social, environmental, or political goal. The profits are used to further the social or environmental aims of the organization or to provide salaries for people who provide free services to specific groups of people.

In addition to explaining the type of social enterprise business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, number of positive reviews, reaching X amount of clients served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the social enterprise industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the social enterprise industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your social enterprise business plan:

• How big is the social enterprise industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your social enterprise business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your social enterprise business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments:non-profits, individuals, social causes, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of social enterprise business you operate. Clearly, social causes would respond to different marketing promotions than individuals needing financial assistance, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other social enterprise companies. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes social enterprise companies such as brand awareness companies, community organizations, government programs, etc.

With regards to direct competition, you want to describe the other social enterprises with which you compete. Most likely, your direct competitors will be social enterprise businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What clients or causes do they serve?
• What type of social enterprise company are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide social enterprise services that your competitors don’t offer?
• Will your social enterprise business help more people in need?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a social enterprise business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of social enterprise company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to social enterprise services, will you provide access to funding, marketing, counseling, and/or brand awareness, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your social enterprise company. Document your location and mention how the location will impact your success. For example, is your social enterprise business located near an office complex, a university, an urban setting, or a busy neighborhood, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your social enterprise marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Website and SEO marketing
• Community events
• Commercials
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your social enterprise business, including communicating with clients, marketing, accounting, accounts payable, fundraising, and searching for grant opportunities.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your social enterprise business to a new location.  

Management Team

To demonstrate your social enterprise business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing social enterprises. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a social enterprise business or are connected to a wide network of professional organizations that frequently tend to donate to various causes.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new service at a time or multiple services ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your social enterprise business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a social enterprise business:

• Cost of social enterprise services
• Cost of overhead, marketing, and outreach
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your social enterprise outline of services, types of customer and/or cause you will be targeting, and the areas your social enterprise business will serve.   Summary Putting together a business plan for your social enterprise business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the social enterprise industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful social enterprise business.  

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to hire someone to write a business plan for you from Growthink’s team.   Other Helpful Business Plan Articles & Templates

Social Enterprise Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Non-Profit Sector

Do you want to start a social enterprise and need to write a plan? If YES, here is a sample social enterprise business plan template & feasibility report.

A social enterprise is an organization that leverages on commercial strategies to maximize improvements in financial, social and environmental well-being.

Social enterprises have both business and social goals. As a result, their social goals are embedded in their objective, which differentiates them from other organizations and corporations.

The major objectives of a social enterprise organization are to promote, encourage, and make social change. This goes to show that there are diverse areas where you can focus on with your social enterprise ideas.

You can actually invest in the Community Housing & Homeless Shelters industry and interestingly, this industry is made up of businesses that offer temporary and emergency shelters, permanent supportive housing, transitional housing , construction and repairs and other.

A Sample Social Enterprise Business Plan Template

1. industry overview.

In the united states, the Social Enterprise Alliance defines a “social enterprise” as “Organizations that address a basic unmet need or solve a social or environmental problem through a market-driven approach.” Interestingly an entrepreneur can focus on starting a transitional housing as a social enterprise.

Transitional housing is temporary housing for certain segments of the homeless population, including working homeless people who are earning too little money to afford long-term housing. Transitional housing is set up to transition residents into permanent, transitional housing.

It is not in an emergency homeless shelter, but usually a room or apartment in a residence with support services. The transitional time can be short, for example one or two years, and in that time the person must file for and get permanent housing and usually some gainful employment or income, even if Social Security or assistance.

Sometimes, the transitional housing residence program charges a room and board fee, maybe 30 percent of an individual’s income, which is sometimes partially or fully refunded after the person procures a permanent place to live in. In the USA, federal funding for transitional housing programs was originally allocated in the McKinney–Vento Homeless Assistance Act of 1986.

Transitional housing business is part of the community housing and homeless shelters industry and this industry provides a variety of community housing services, including:

Short-term emergency shelter for victims of domestic violence, sexual assault or child abuse; temporary residential shelter for the homeless , runaway youths and parents and families caught in medical crises; transitional housing and assisted living for low-income individuals and families; and volunteer construction or repair of low-cost housing.

The Community Housing & Homeless Shelters Industry is indeed a large industry and pretty much active in most developed countries of the world.

Statistics has it that in the United States of America alone, there are about 12,323 registered and licensed community housing and homeless shelters companies responsible for directly employing about 132,874 people and the industry rakes in a whooping sum of $12 billion annually.

The industry is projected to grow at – 0.7 percent annually within 2014 and 2019. It is important to state that no company can boast of having a major market share in the industry.

Some of the factors that encourage entrepreneurs to start their own transitional housing company as a social enterprise organization could be that the business is thriving and profitable, and an aspiring entrepreneur can successfully launch the business if they have a pool of cash.

If you are going into the construction of transitional housing as a social enterprise organization, it is very important to be creative, to be able to use your ideas to meet the rapidly changing needs of the society when it comes to housing and meeting related social needs of your target market.

2. Executive Summary

St. Peter McCain© Transitional Housing , Inc. is a social enterprise and not a charity organization. It is a profit-generating business that serves not just to make money but also to make an impact in the lives of the homeless in the city where we are going to be operating from.

We will have our headquarters in Montgomery – Alabama and will major in the construction of transitional housing so as to provide a variety of community housing services, including:

Short-term emergency shelter for victims of domestic violence, sexual assault or child abuse; temporal residential shelter for the homeless, runaway youths and parents and families caught in medical crises; transitional housing and assisted living for low-income individuals and families; and volunteer construction or repair of low-cost housing.

St. Peter McCain© Transitional Housing, Inc. is going to be a self-administered and a self-managed real estate investment trust (REIT). We will engage in the construction of different transitional homes that will meet the needs of our clients.

We will work towards becoming one of the largest transitional housing construction companies in the United States of America with active presence in major cities.

As part of our plans to make our customers our number one priority and to become one of the leading social enterprise in the United States of America, we have perfected plans to adopt international best practices that can favorably compete with the best in the industry. St. Peter McCain© Transitional Housing, Inc. has overtime perfected plans that will help us to become specialists in our area.

St. Peter McCain© Transitional Housing, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a social enterprise organization, by actively participating in our communities and integrating sustainable social enterprise practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. St. Peter McCain© Transitional Housing, Inc. will be owned majorly by Peter McCain and his immediate family members. Peter McCain has a Degree in Civil Engineering.

He is a property guru that has worked with top community housing companies in the United States of America for many years prior to starting his own social enterprise. Other organizations and investors with same social enterprise ideology whose name cannot be mentioned here for obvious reasons are going to be part of the business.

3. Our Products and Services

St. Peter McCain© Transitional Housing, Inc. is going to offer varieties of services within the scope of the community housing and homeless shelters industry in the United States of America. Our intention of starting our social enterprise organization is to favorably compete with leading players in the transitional housing cum social enterprise market space in the United States of America.

We will be involved in providing;

• Short-term emergency shelter for victims of domestic violence, sexual assault or child abuse
• Temporary residential shelter for homeless, runaway youths and families caught in medical crises
• Transitional and assisted housing for low-income individuals and families
• Volunteer construction or repair of low-cost housing
• Repair of homes for elderly or disabled homeowners as a support service

4. Our Mission and Vision Statement

Our vision as a social enterprise is to become the leading operator in the social economy of Alabama whose main objective is to have a social impact rather than make a profit for our owners and shareholders.

Our mission of starting a social enterprise cum transitional housing construction business is to help victims of domestic violence, sexual assault or child abuse, the homeless, runaway youths, families caught in medical issues and average low – income earning families, own their own transitional housing in and around Montgomery – Alabama.

Our Business Structure

Our organization’s structure is not entirely different from what is obtainable in the community housing and homeless shelters industry. As a matter of priority, we have decided to create a structure that will allow for easy growth for our employees and also, we have created platforms that will enable us attract some of the best hands in the industry.

We are quite aware that the success of any social enterprise lies in the foundation on which the business is built on, which is why we have decided to build our transitional housing construction company on the right business foundation.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.  As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target.

St. Peter McCain© Transitional Housing, Inc. is fully aware of the modus operandi in the community housing and homeless shelters industry, hence adequate provision and competitive packages has been prepared for independent real estate brokers.

Our marketing department will be responsible for managing this aspect of our business structure. Below is the business structure we will build St. Peter McCain© Transitional Housing, Inc. on;

• Chief Executive Officer
• Company’s Lawyer / Secretary

Project Manager

Civil Engineer

Land Surveyor

Admin and HR Manager

• Business Developer / Sales and Marketing

Transitional Housing Officer

• Customer Service Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Company’s Lawyer/Secretary/Legal Counsel

• Responsible for drawing up contracts and other legal documents for the company
• Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial / securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
• Develop company policy and position on legal issues
• Research, anticipate and guard company against legal risks
• Represent company in legal proceedings (administrative boards, court trials et al)
• Play a part in business deals negotiation and take minutes of meetings
• Responsible for analyzing legal documents on behalf of the company
• Prepares annual reports for the company
• Responsible for the planning, management and coordinating all projects on behalf of the company
• Supervise projects
• Ensure compliance during project executions
• Providing advice on the management of projects
• Responsible for carrying out risk assessment
• Using IT systems and software to keep track of people and progress of ongoing projects
• Responsible for overseeing the accounting, costing and billing of every project
• Represent the organization’s interest at various stakeholders’ meetings
• Ensures that project desired result is achieved, the most efficient resources are utilized and different interests involved are satisfied.
• Responsible for preparing bids for tenders, and reporting to clients, public agencies and planning bodies
• Ensures that sites meet legal guidelines, and health and safety requirements
• Assessing the environment impact and risks connected to projects
• Responsible for judging whether projects are workable by assessing materials, costs and time requirements
• Drawing up blueprints, using Computer Aided Design (CAD) packages
• Discussing requirements with the client and other professionals (e.g. architects and project managers et al)
• Responsible for managing, directing and monitoring progress during each phase of a project
• Responsible for creating building designs and highly detailed drawings
• Working around constraining factors such as town planning legislation, environmental impact and project budget
• Writing and presenting reports, proposals, applications and contracts
• Adapting plans according to circumstances and resolving any problems that may arise during construction
• Work with project team and management to achieve a common goal
• Responsible for applying for planning permission and advice from governmental new building and legal department.
• Responsible for undertaking land surveys/measurements
• Responsible for presenting data to clients
• Responsible for producing and advising about construction plans and drawings
• Responsible for advising about technical matters and whether the construction plans are viable
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Design job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.
• In charge of inspecting and reporting on the structural attributes of a building
• Responsible for handling reporting on and evaluating the component systems of a building (electrical, fire, roofing and plumbing)
• Assessing compliance with building, electrical, plumbing and fire codes
• Evaluating building plans and permits
• Studying and assessing the soil composition and attributes of where the building is located
• Reviewing and approving plans that meet building codes, local ordinances and zoning regulations
• Issuing violation notices and stop-work orders until building in violation is compliant
• Keeping daily logs, including photographs taken during inspection
• Handle real estate consultancy and advisory services

Marketing and Sales Executive/Business Developer

• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s need s, and communicate with clients
• Finds and qualifies land for development based on company’s land requirements; maintains a land search database; initiates discussions with property owners about the possible sale of property
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managers with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Front Desk/Customer’s Service Officer

• Receives Visitors/clients on behalf of the organization
• Receives parcels/documents for the company
• Handles enquiries via e-mail and phone calls for the organization
• Distribute mails in the organization
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the line manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s properties that are put – up for sale, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

The fact that transitional housing construction business is a very rewarding business does not mean that there are no challenges in the industry. In order to compete favorably in the community housing and homeless shelters industry as a social enterprise organization we have been able to hire the services of tested and trusted business and HR consultants to help us conduct critical SWOT analysis.

We intend maximizing our strengths, explore all opportunities we will come across, properly manage our weakness and confront our threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of St. Peter McCain© Transitional Housing, Inc.;

Some of the strengths that we will be bringing to the table in the industry is our robust relations with properties investment moguls in the whole of the United States of America. Also, our access to pools of low-income earning families and the homeless who are willing to own their own transitional housing.

Again, we have a team of experts who have cut their teeth in the social enterprise market. Our commission structure and relationship with freelance real estate agents in Montgomery – Alabama and other state in the US will also count towards our advantage.

As a newbie in the transitional housing line of business, we might have some challenges competing with big time social enterprise organizations and other transitional housing construction companies that have been in the industry for many years; that perhaps is part of our weakness.

• Opportunities:

Unemployment usually leads to a decline in income, which makes housing less affordable. A rise in the national unemployment rate will increase demand for community housing services. Conversely, a decrease in the unemployment rate will reduce the number of individuals seeking the services provided by the industry.

The national unemployment rate is expected to decrease in 2019. However, potential economic uncertainty in the near future could contribute to higher unemployment, presenting an opportunity for the industry.

The majority of industry revenue comes from the federal, state and local government-funded homeless and housing assistance programs. Any changes in funding or government policy will drastically affect industry revenue. Federal funding for social services is expected to decrease in 2019, posing a potential threat to the industry.

7. MARKET ANALYSIS

• Market Trends

Housing choice is a response to an extremely complex set of economic, social, and psychological impulses. For example, some households may choose to spend more on housing because they feel they can afford to, while others may not have a choice but to stick to transitional housing via as a way of escaping being homeless.

Market forces, policy decisions, and demographic changes have converged, making it more difficult to increase transitional housing for renters. The US affordable-housing crisis shows no signs of going away anytime soon, and it’s having the unadulterated effects on people with the lowest

So also, with the high rate of people migrating to the United States, it is the norm for them to contract transitional housing construction companies to help them with transitional housing that they intend leasing or renting on a short time basis. In essence, most transitional housing construction companies are targeting migrants and the vulnerable in the society who are likely going to need such properties.

Another obvious trend that is common with transitional housing construction companies in the United States of America is that most of them are improvising on more means of making money in the industry and as matter of fact, they are also acting as property developers and home staging agents.

One thing is certain for every transitional housing construction company; if they are hardworking, creative and proactive, they will always generate enough income to meet all their overhead and operational cost, keep their business going without struggle and make reasonable profits.

8. Our Target Market

As a social enterprise operating in transitional housing market space, our target market cuts across homeless and vulnerable families who are classified as low-income earners. We are coming into the community housing and homeless shelters industry with a business concept that will enable us work with a wide range of clients and make positive social impact in their lives.

Our target market are vulnerable and low – income earning families in the whole of the United States of America and we have put plans in place to recruit freelance agents (brokers) nationally to represent our interest wherever they are located in the United States of America.

Below is a list of the people and organizations that we have specifically designed our services for;

• Victims of domestic violence
• Sexual assault or child abuse victims
• The homeless, runaway youths and parents and families caught in medical crises
•  Low-income individuals and families
• Families who are interested in acquiring/renting a decent and well renovated transitional apartment

Our Competitive Advantage

The availability of competent and reliable real estate professionals under our payroll, our business process, pricing model and social impact packages et al are part of our competitive advantages.

Another possible competitive strategy for winning our competitors in this particular industry is to build a robust clientele base, and ensure that our transitional homes designs are top notch and trendy. Our organization is well positioned, key members of our team are highly reliable and competent and can favorably compete with the some of the best in the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives. We will also engage freelance real estate brokers/agents on a commission level to help us market our services.

9. SALES AND MARKETING STRATEGY

• Sources of Income

St. Peter McCain© Transitional Housing, Inc. is established with the aim of making maximum social impact and of course profits. Although we are a social enterprise in the transitional housing market space, but part of our work force are also licensed real estate agents hence we intend generating additional income from diverse means in the real estate agency.

We have successfully built a vibrant real estate network that covers the whole of the United States of America so as to help us build a profitable social enterprise organization. Below are the sources we intend exploring to generate income for St. Peter McCain© Transitional Housing, Inc.;

• Repair of homes for elderly or disabled homeowners as part of our give back to the community.

10. Sales Forecast

It is a known fact that as long as there are vulnerable people and low – income earning families in the United States of America, there will always be need to for transitional housing construction companies from time to time.

We are well positioned to take on the challenges that are synonymous with social enterprises that operate in the transitional housing market space in the United States, we are quite optimistic that we will meet out set target of generating enough income/profits from the first month or operations and grow the influence of our social enterprise beyond Montgomery – Alabama to other states within record time.

We have been able to examine the social enterprise market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions peculiar to similar start – ups in Montgomery – Alabama;

Below are the sales projections for St. Peter McCain© Transitional Housing, Inc. it is based on the location of our social enterprise and the services we will be offering;

• First Fiscal Year (FY1): $1 million
• Second Fiscal Year (FY2): $2.5 million
• Third Fiscal Year (FY3): $3.5 million

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor offering same services and social impacts as we do within the locations where we have a strong business presence. Please note that the above projection might be lower and at the same time it might be higher since some factors are beyond our control.

• Marketing Strategy and Sales Strategy

We quite mindful of the fact that there are stiff competitions in the transitional housing market in the United States of America, hence we have been able to hire some of the best business developers to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.  The training is not restricted to only our full – time employees but it will also get to our freelance brokers. St. Peter McCain© Transitional Housing, Inc. is set to make use of the following marketing and sales strategies;

• Introduce our social enterprise cum transitional housing construction company by sending introductory letters alongside our brochure to low income earning families, vulnerable families, individuals and other key stake holders throughout the city where our social enterprise organization is located.
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
• Create a basic website for our business so as to give your business an online presence
• Directly market our services
• Join local social enterprise organization associations for industry trends and tips
• Join local chambers of commerce and industry with the aim of marketing our services
• Advertise our social enterprise organization in community – based newspapers, local TV and radio stations
• List our social enterprise on yellow pages’ ads (local directories)
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

We have been able to work with our consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the transitional housing cum real estate industry by storm which is why we have made provisions for effective publicity and advertisement of our social enterprise organization.

Below are the platforms we intend to leverage on to promote and advertise our social enterprise organization;

• Place adverts on both print and electronic media platforms
• Sponsor relevant TV shows so as to be able to communicate our brand and what we do
• Maximize our company’s website to promote our business
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
• Install our Billboards in strategic locations in and around Montgomery – Alabama
• Distribute our fliers and handbills in targeted areas from time to time
• Attend landlord and residence association meetings with the aim of networking and introducing our business.
• Ensure that all our workers wear our branded shirts and all our vehicles and ambulances are well branded with our company’s logo et al.

12. Our Pricing Strategy

The fact that a social enterprise is not a charity organization but a profit-generating business that serves not just to make money but also to make a social impact, means that we will charge far less than what people in main stream industry will be charging.

We will ensure that we don’t know run at a loss but at the same make relative profits that we can easily leverage on to make maximum impact in our city.

• Payment Options

At St. Peter McCain© Transitional Housing, Inc. our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them but at the same time, we will not accept payment by cash because of the volume of cash that will be involved in most of our transactions.

Real estate deals usually involve huge amount of money. Here are the payment options that St. Peter McCain© Transitional Housing, Inc. will make available to her clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches and we will also pay our freelance sales agents (real estate brokers) with same platforms.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive social enterprise cum transitional housing construction company in Montgomery – Alabama and here are the key areas where we will spend our startup capital;

• The total fee for incorporating the business in The United States of America – $750.
• The budget for permits and license – $2,000
• The cost for hiring business consultant – $2,500.
• The cost for computer software apps (Accounting Software, Payroll Software, CRM Software, real estate software, and QuickBooks Pro et al) – $7,000
• The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
• The cost for acquiring suitable Office facility with enough space in Montgomery – Alabama – $1.5 million.
• The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $150,000
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost of launching our official Website – $600
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000

Going by the report from the market research and feasibility studies conducted, we will need approximately 2.5 million dollars to successfully set up a small scale but standard social enterprise in the transitional housing market space in the United States of America.

Please note that the salaries of all our staff members for the first month is included in the expenditure and the pool cash needed for the construction of the first set of affordable houses is not part of this financial projection. We will contact our partners to pool cash together when the time comes.

Generating Funds/Startup Capital for St. Peter McCain© Transitional Housing, Inc.

St. Peter McCain© Transitional Housing, Inc. is a social enterprise that will be owned and managed by Peter McCain, his immediate family members and other business partners. They decided to restrict the sourcing of the startup capital for the social enterprise to just three major sources.

• Generate part of the startup capital from personal savings and sale of his stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $1 million (Personal savings $800,000 and soft loan from family members $200,000) and we are at the final stages of obtaining a loan facility of $1.5 million from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business (company), then it won’t be too long before the business closes shop.

One of our major goals of starting St. Peter McCain© Transitional Housing, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to rent / lease / sell our transitional housing services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

St. Peter McCain© Transitional Housing, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring of Office Facility and remodeling the facility in Montgomery – Alabama: Completed
• Conducting Feasibility Studies: Completed
• Generating capital from the CEO/President and Business Partners: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Marketing/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): In Progress

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Writing your first business plan

Wh y do you need a business plan .

A business plan will help you to clarify your idea, identify challenges and allow you to monitor the progress you’re making. Your business plan is not a static document, it is something you should revisit and update as your organisation grows.

” A goal without a plan is just a wish” Antoine de Saint-Exupéry

Putting pen to paper

Writing a business plan may seem daunting, but you’ll probably find that writing down your idea will bring clarity and focus to what you are looking to achieve as a social entrepreneur.

Your business plan should demonstrate that your idea is well thought through and sustainable in the long-term. As a start-up you will find that funders, investors and stakeholders will request to see your business plan. Once you have your plan on paper it will be quick for you to pull together the information requested by funders or investors.

“The best business plans are straightforward documents that spell out the who, what, where, why, and how much.” Paula Nelson

What to include in your business plan

When you are writing your first business plan you should aim to answer the following questions:

• What is your idea?

What are you offering to your beneficiaries and customers? This is sometimes referred to as ‘value proposition.’

• Who are your customers?

Who is going to buy your product or service?

• Who are your beneficiaries?

Who will benefit from what you’re doing? For a social organisation your beneficiaries and customers may be different groups, so it’s important to think about what you are offering to each of them.

• How will you promote your organisation?

How will you market yourself to customers and beneficiaries? Now you know who they are, how do you plan to reach them?

• Who else is doing something similar?

Who are your competitors? How does your organisation differ? Take time to think about what they do well and learn from them, it’s unlikely your idea has never been done before so use others experience as a tool for learning.

• Steps to achieve your goals.

What do you need to do to achieve your objectives? Breaking down things into step by step actions will make your idea seem more achievable, it will also prevent you from getting distracted.

• What resources do you need?

What resources you will need to make this happen – people, premises, materials? Try to be realistic. When you are first starting out you might be able to beg, steal and borrow but if you want to become sustainable you need to be realistic about the resources you need.

• How much money will you have coming in?

What are people willing to pay for your services? Be realistic with how many sales you are likely to make and try to base this on evidence where possible.

• How much money will you have going out?

Once you know what resources you require, you need to work out how much will they cost you. The cost of people, equipment and premises all need to be accounted for.

• How much money will you have left over?

Will you break-even or have a profit? If you have a profit what you will do with it? You might not make a profit in your first year but you need to have an idea of when and how you will become financially sustainable.

How to structure your business plan

Once you’ve written your first business plan ask for feedback, then listen to the feedback you’ve receive. Be open to constructive comments and willing to add detail where it is needed.

Don’t forget to review your business plan regularly (don’t lock it away in a drawer!) Use your business plan to monitor your progress and keep you working towards your goals:

Further learning

• Learn to Build a Better Business Plan
• The Social Business Model Canvas

Back to Resources

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tools4dev Practical tools for international development

Social Enterprise Business Plan Template

A social enterprise is a business that aims to achieve a particular public or community mission (social, environmental, cultural or economic), and reinvests the majority of its profits into achieving that mission. This template can be used to write a business plan for a social enterprise that describes both the positive impact of the social enterprise and the plan to make it a viable business.

Download the Social Enterprise Business Plan template

This template is appropriate when:

• You are writing a business plan for a social enterprise (if you aren’t sure whether you are running a social enterprise have a look at this article ).

This template is NOT appropriate when:

• You are writing a plan for a non-profit that gets most of its revenue through donations or grants.
• You are writing a plan for a for-profit business. However, in this case you could just use the business section of the template.

The Stakeholder Analysis Matrix Template by  tools4dev  is licensed under a  Creative Commons Attribution-ShareAlike 3.0 Unported License . All other content is  © tools4dev .

About Piroska Bisits Bullen

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Creating a Winning Business Plan for Social Entrepreneurs

Published May.23, 2023

Updated Apr.22, 2024

By: Jakub Babkins

Average rating 5 / 5. Vote count: 1

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Table of Content

1. What is a Social Entrepreneur Business Plan?

A social entre­preneur business plan is a de­tailed strategy and roadmap. The Nonprofit Start-Up Busine­ss Plan outlines the social ente­rprise’s revenue­ generation, financial manageme­nt, and progress measureme­nt. By creating a comprehensive­ business plan, social entrepre­neurs can ensure that their social enterprise is we­ll-prepared to meet its objectives.

2. Why do we need a social entrepreneur business plan?

A successful social e­ntrepreneur ne­eds an essential tool: a we­ll-crafted business plan. This plan serves multiple purposes. First, it helps in identifying the specific problem that needs to be addressed. Second, it sets clear goals and de­fines the target audience. Third, it devises strategies for achieving these­ objectives. Additionally, this plan plays a crucial role in identifying potential funding sources and resources. It also maps out a timeline for goal attainment.

A Homele­ss Shelter Business Plan aids organizations in de­veloping successful and scalable business models that can effectively achieve their de­sired impact.

3. Sources of funding for social enterprise businesses

Grants are one­ of the sources for funding social ente­rprise businesses. Social e­ntrepreneurs ofte­n receive grants from non-profit and government organizations. These grants serve as startup capital and provide ongoing operational support.

Links to funds for non-profit organizations: Newprofit: https://www.newprofit.org/ Ashoka: https://www.ashoka.org/en-us MassChallenge: https://masschallenge.org/

In addition to traditional funding sources like­ crowdfunding, angel investors, and venture­ capital firms, social enterprises can also e­xplore loan programs provided by the Small Busine­ss Administration. Two such programs are the 504 and 7(a) loan programs which offer financing options for social e­nterprises.

Furthermore, an increasingly popular ave­nue for funding social enterprise­ businesses is through social impact investing.

4. How to write a social enterprise business plan

• Start by Defining Your Social Mission: Before diving into writing your business plan, it is e­ssential to have a clear understanding of your organization’s purpose, values, and desire­d social outcomes.
• Describe Your Target Market: The target market description is a crucial aspect of your Strate­gic/Operational plan . It is essential to clearly identify your target customers, their needs and desire­s, and outline how you intend to address those­ requirements effectively.
• Outline Your Business Model: Then comes outlining your business model. This step involves de­termining how you’ll generate­ income, what products or services you’ll offer, and how you’ll deliver them to your customers.
• Develop Your Marketing and Sales Strategy: After your business model is outlined, you should then develop your marketing and sales strategy. This social enterprise business plan should include how you plan to market and promote your products or services, what pricing model you plan to use, and how you plan to generate sales.
• Describe Your Team and Resources: This includes showcasing the skills and experience of team members, outlining strategies for attracting and re­taining top talent, as well as identifying any necessary resources required for the success of the­ business.
• Outline Your Financial Plan: These include­ identifying the start-up funds require­d, determining the me­ans of financing operations, and planning for future investme­nts that may be made.

5. Executive summary

Our social ente­rprise, JYC, has a mission to empower vulne­rable communities in deve­loping countries. The JYC organization collaborate­s with various stakeholders like NGOs, governments, and corporations to establish a comprehe­nsive platform. This platform aims to empower individuals in de­veloping and sustaining their own businesses. Through our tailored training programs, financial resources, and me­ntorship opportunities, entrepre­neurs receive­ the necessary support to build and maintain successful ventures.

6. Company (Institutional) analysis

The social e­ntrepreneurship busine­ss plan aims to establish a sustainable, equitable­, and responsible economy. It does so by offering resources and training to e­ntrepreneurs, enabling them to create busine­sses that generate­ meaningful social and environmental advantage­s.

We strongly believe­ in equal access to resources and networks for building successful businesses, ensuring that everyone­ benefits from their success.

7. Structure and Background

JYC, a social entre­preneurship company founded in 2020, is de­dicated to tackling social and environmental challe­nges through the impleme­ntation of innovative and sustainable business mode­ls. Its main focus revolves around enabling unde­rserved and marginalized communities to access quality education, employment opportunities, and healthcare services.

Our team comprises skilled professionals from diverse­ sectors, including finance, technology, and social work. Their collective experience empowers us to create sustainable solutions that drive positive­ social change while fostering financial stability.

8. Market (Industry) analysis

The social entrepreneurship market is growing rapidly in the United States of America; estimated that 22% have over $2 million in revenue, 89% were created since 2006, and 90% focus on solving problems at home (2012).

Social Enterprise: Statistics from Around the World

JYC’s social entrepreneurship business plan will focus on providing innovative solutions to social issues and problems that have not been solved traditionally.

9. Competitor analysis

Our social entrepreneur business plan template competitors are:

• Social Impact Exchange – a global platform that helps social entrepreneurs connect with investors to fund their projects
• UnLtd – a social enterprise accelerator that provides support for early-stage social entrepreneurs
• GlobalGiving – a crowdfunding platform that helps social entrepreneurs and non-profits raise funds for their projects
• Ashoka – a global network of social entrepreneurs providing mentorship and resources to empower the social enterprise sector
• Social Enterprise UK – a membership organization that supports and promotes social enterprises in the UK.

10. Services and Products

Our components of a business plan social enterprise include services and products which are:

• Consulting services for small businesses and start-ups
• Advisory services for nonprofits
• Educational programs for children in underserved communities
• Professional development programs for adults
• Impact investing services
• Training and development programs for entrepreneurs
• Community outreach programs
• Corporate social responsibility programs
• Social enterprise incubator services

11. Sales and Marketing Plan

In order to ensure the success of a social e­ntrepreneurship company, an effective sales and marketing plan should incorporate the following key elements:

The business aims to develop a mission and vision statement that effectively outline­s its goals and objectives. This stateme­nt serves as a guiding framework for the­ organization’s future

In order to set the company apart from competitors and establish a unique­ selling proposition, an innovative social ente­rprise app is being created.

In order to effectively promote a product or service, it is important to develop a compre­hensive marketing strategy.

12. Operational plan

Our hybrid social enterprise operational plan’s format focuses on serving our community, creating jobs, and reducing our carbon footprint.

• Supporting local businesses
• Incorporating green practices into our operations
• Developing social programs to benefit the community
• Establishing a system of sustainable production
• Creating partnerships with nonprofits and public institutions
• Minimizing waste and energy consumption.

13. Evaluation/assessment

• Analyzing the mission statement and goals of the social entrepreneurship company.
• Examining the business model and resources required to achieve success.
• Assessing the impact of the company on the community.
• Examining the company’s financial health and sustainability.
• Evaluating the management team and their ability to execute the plan.
• Analyzing the marketing strategy and its effectiveness.
• Evaluating the potential for growth and scalability.
• Assessing the competitive landscape and how the company can differentiate itself.

14. Management team

Executive Team:

• Chief Operating Officer
• Chief Financial Officer
• Chief Technology Officer
• Head of Human Resources

Advisory Board:

• Business Development Advisor
• Legal Advisor
• Marketing Advisor
• Technology Advisor

15. Projection and Financial Planning

The social e­nterprise group aims to raise $1 million in capital over the next five years. This funding will support various aspects, including platform development, staff recruitment, and covering ope­rational expenses. The­ organization plans to generate re­venue through government contracts and by offering data analytics services to local governments.

Startup Costs

The initial startup costs for this business will be $200,000.

The primary source of revenue will come from government contracts and data analytics services. Government contracts will provide a steady stream of income, while data analytics services will provide additional revenue.

Financial Highlights

The projected financial highlights for the business are as follows:

• Revenue: $1.5 million by 2024
• Profits: $400,000 by 2024
• Return on Investment: 40%
• Cash Flow: $1.2 million by 2024
• Break-even Point: 12 months

16. Discover the Power of Social Entrepreneurship with OGS Capital

Highly efficient service.

Highly Efficient Service! I am incredibly happy with the outcome; Alex and his team are highly efficient professionals with a diverse bank of knowledge.

OGS Capital specialize­s in assisting entreprene­urs in developing and implementing impactful social entreprene­urship business plans. Our highly experie­nced team collaborates with nume­rous social entreprene­urs to create custom plans that yield me­asurable outcomes.

Whether you are an aspiring entrepre­neur trying to make your mark or a seasone­d professional in the business world, our Busine­ss Planning Services are here to assist you. We specialize­ in developing comprehe­nsive plans that fully embrace your unique­ vision and core values. Through close collaboration, we­ will work diligently alongside you to identify the­ optimal strategies for success and de­termine the necessary resources to bring your goals to fruition.

OGS Capital values the­ transformative power of social entre­preneurship. With our guidance, you can establish a social ente­rprise that leaves a lasting, me­aningful impression.

OGS Capital can be your re­liable partner in creating a robust social e­ntrepreneurship business plan. Feel free­ to reach out to us today for assistance.

Q. What are examples of social entrepreneurship businesses?

1. Revolution Foods: Revolution Foods is a social enterprise providing healthy meals to underserved students. https://www.revolutionfoods.com/

2. Kiva: Kiva is a nonprofit providing micro-loans to developing countries’ entrepreneurs. https://www.kiva.org/

3. Ecosia: Ecosia is an online search engine that donates 80% of its profits to reforestation projects worldwide. https://www.ecosia.org/

4. Warby Parker: Warby Parker is an eyewear company that donates a pair of glasses to someone in need for every pair purchased. https://www.warbyparker.com/

5. Solar Sister: Solar Sister is a social enterprise that helps women in Africa build businesses selling solar-powered products. https://solarsister.org/

Q. How do you write a social enterprise business plan?

When establishing a social enterprise, it is crucial to unde­rtake the task of crafting a comprehe­nsive business plan. This plan serve­s as a roadmap, outlining key aspects such as the e­nterprise’s objective­s and mission, the range of service­s or products on offer, an analysis of the intended audience and market, financial conside­rations, a succinct overview of the marke­ting strategy, and a timeline e­ncompassing both launch and growth milestones. A meticulously de­veloped social ente­rprise business plan sets the­ stage for success in this impactful venture­.

The plan should have­ a comprehensive e­xplanation of the enterprise­’s mission and values. It should also address the compe­titive landscape and any applicable re­gulations. When writing the plan, it is important to be thorough, re­alistic, and ensure clarity for easy understanding.

Download Social entrepreneur business plan Template in PDF

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Social Enterprise 101: Types, Examples, Learning Opportunities

There are millions of nonprofits addressing issues like poverty, hunger, gender inequality, racial discrimination and much more, but they aren’t the only organizations concerned with social and environmental objectives. Since the 1970s, a unique type of organization – the social enterprise – has been blending aspects of nonprofits and for-profits into businesses that prioritize social good over profits. In this article, we’ll explore what social enterprises look like, the different types, five examples and where you can learn more.

What is a social enterprise?

Social enterprises are businesses with social and environmental goals . While they’re not charities, they tend to be committed to similar concerns regarding poverty, hunger, environmental protection, gender equality and so on. Social enterprises generate profit, but a lot of it goes back into the business to help it achieve its goals. Social enterprises also often hire people from disenfranchised communities while prioritizing programs like profit-sharing, member ownership, training and development, inclusive hiring practices and more.

What are the types of social enterprises?

Entrepreneurial nonprofit.

Nonprofits are a type of organization exempt from taxes. Because “nonprofit” is a tax status, organizations working on a variety of social issues can be nonprofits. Churches, private foundations, political organizations or charitable organizations are four general types, while Feeding America, Greenpeace and Human Rights Campaign are three specific examples. To qualify as a nonprofit, organizations must receive government approval. Countries vary in their requirements, but in general, nonprofits do not generate profit. What’s an entrepreneurial nonprofit? Nicole Motter says these organizations use a revenue-generating program or an entrepreneurial business model. Unlike a traditional nonprofit, which depends on donations and grants for funding, the programs and activities of an entrepreneurial nonprofit keep the organization sustainable.

Cooperatives

According to the Corporate Finance Institute, cooperatives are member-owned organizations. Their goal is to “satisfy their members’ social, economic, and cultural needs.” Even if a member owns fewer shares than others, everyone has equal voting rights. While cooperatives are for-profit, they have some key differences from traditional businesses, like open membership, democratic member control, independence and concern for the community. Specific structures vary by region because of legalities, but in general, all cooperatives are designed to serve the members.

Worker-owned businesses

B corporations, fair trade organizations.

“Fair trade” is a social movement committed to achieving better standards for wages, product origins, supply chains, environmental impacts and much more. There are a handful of fair trade certifications, such as Fairtrade , which calls itself “the most recognized and trusted sustainability label in the world,” and Fair Trade Certified , which sets standards for things like safe working conditions, sustainable livelihoods and environmental protection. Entities classified as fair trade tend to be for-profit, but they’ve demonstrated values that empower workers and consumers, which makes them different from traditional for-profits. Nonprofits can also participate in fair trade practices by setting higher standards for products they sell, promoting fair trade principles, collaborating with fair trade organizations and establishing their own fair trade values.

Credit unions

What are five examples of social enterprises, girl scouts of the usa.

Girl Scouts of the USA is a youth organization based in the United States. Its goal is to empower girls through skill development, community engagement, leadership, friendship and mentorship. Placement of transgender youth is handled on a case-by-case basis . Girl Scouts is a nonprofit organization. Its cookie program, which usually extends from January through April, provides revenue, which is put back into the organization.

Bob’s Red Mill

The food company Bob’s Red Mill, which was founded in 1978, is an employee-owned business. In 2010, founder Bob Moore created an Employee Stock Ownership Plan. With this plan , the company contributes its stock, which is held in trust for the employees. When the vested employees leave or retire, they get cash. In 2020, Bob’s Red Mill became 100% employee-owned.

Township Patterns

Since 1997, Township has been committed to building sustainable economic opportunities for women in South African township communities. The organization’s fashion brand provides work to independent, township-based sewing cooperatives. Using fair trade practices, the business designs, markets and sells a variety of handmade, ethically-sourced bags and accessories. According to its website, Township was the first South African fashion brand welcomed into the World Fair Trade Organization.

Haven Coffee

Where can you find more learning opportunities about social enterprise, becoming a social entrepreneur: getting started (university of michigan).

Commitment: 17 hours (3 weeks with 5 hours per week)

Social Entrepreneurship (University of Pennsylvania)

Commitment: 6 hours

Social Entrepreneurship Specialization (Copenhagen Business School)

Commitment: 1 month (10 hours per week)

The Solution Revolution: How Businesses, Government and Social Enterprises Are Teaming Up To Solve the World’s Toughest Problems (2013)

By: William D. Eggers and Paul MacMillan

Innovation and Scaling For Impact: How Effective Social Enterprises Do It (2019)

This book examines what derails organizations trying to work for the common good. Using four case studies, the authors help readers avoid mistakes, innovate and scale more effectively.

The Greater Good: Social Entrepreneurship for Everyday People Who Want to Change the World (2021)

What Is a Social Enterprise?

Angelique O'Rourke

5 min. read

Updated November 9, 2023

A social enterprise is defined by its mission, specifically that it makes a positive contribution to a social cause. Because of this, the structure of a social enterprise can vary. Nonprofits are certainly social enterprises, but many for-profit companies fall into this category by making the conscious decision to have their focus be an altruistic cause, rather than the maximization of profits. Of course, there are also ways to form both a for-profit and a nonprofit arm of the same venture. In terms of legal structure, social enterprises have many options.

The Social Enterprise Alliance offers this definition:

“In its early days, the social enterprise movement was identified mainly with nonprofits that used business models and earned income strategies to pursue their mission. Today, it also encompasses for-profits whose driving purpose is social. Mission is primary and fundamental; organizational form is a strategic question of what will best advance the social mission.”

• What does a social enterprise look like?

An excellent example of a social enterprise is The Empowerment Plan —an organization that hires people currently living in homeless shelters to create a combination winter coat, sleeping bag, and over-the-shoulder bag, which is then distributed to the homeless of Detroit free of charge. This incorporates a socially beneficial mission with a manufacturing arm that produces a useful product for its targeted demographic, while also directly providing employment to members of that demographic.

According to the Harvard Business Review,  in most U.S. states for-profit companies can accept donations and nonprofit companies earn revenue, which dispels the myths that a nonprofit can’t make money, or a for-profit venture would miss out on donations. They also note that after the 2007 recession—when things looked grim for the U.S. economy in general—U.S. charitable giving fell by only 10 percent. Ultimately, you can use either structure, or decide to form separate entities that serve the same cause in different ways, working together.

One social enterprise that embodies this model is InStove, an organization that sustainably makes the world’s most efficient stove, for use primarily in developing nations where fossil fuels and electricity are scarce, and walking long distances to gather wood can be dangerous. Here in the U.S. it is a 501(c) (3) nonprofit, but because of its dedication to sustainability, it is now working with local communities to form separate stove manufacturing factories in their countries. InStove contributes both the technology for efficient stoves, and the means to create sustainable jobs.

Overall, the consensus among the experts is that the structure of the social enterprise should be decided by what will best serve the organization, facilitate its charitable mission, and, of course, keep it sustainable. “Our best chance to make the world better is to agree that the choice among corporate structures should be made entirely in service of social impact,” says Rich Leimsider, the Vice President of Fellowship Programs at Echoing Green, a nonprofit that invests with social entrepreneurs.

• Popular structures used for social enterprise

Nonprofits have clear social missions and are not profit-driven. They have to meet specific legal requirements for their organizational structure, and demonstrate the transparency of their funding. This of course does not mean that nonprofits are able to generate revenue to build a sustainable venture, but it does mean that any surplus will be put right back in the coffers. In the United States, most nonprofits use the 501(c)(3) structure, which allows the organization to be tax exempt, and requires regular reporting to the IRS. Each U.S. state has a State Charity Official that can be contacted for more information.

For-Profit Entities

L3cs, or low-profit limited liability company.

L3Cs, or Low-Profit Limited Liability Companies, are one form of legal structure in the U.S. that social enterprises can take. An L3C is a variation on an LLC,  essentially a hybrid form of a nonprofit and for-profit company. The organization is designed so that it can function generally as an LLC would, while legally accepting foundation grants because of the organization’s socially beneficial goals. L3Cs were first formed in 2008, and are currently only legal in Illinois, Kansas, Louisiana, Maine, Michigan, North Dakota, Rhode Island, Utah, Vermont, and Wyoming, as well as the federal jurisdictions of the Crow Indian Nation of Montana, and the Oglala Sioux Tribe.

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B corps are corporations that are for-profit, but go through a certification process administered by the independent third party nonprofit B Lab , to be able to publicly demonstrate that their business is focused on a social mission. You can view the steps of the certification process here.  Certification as a B Corp is available globally, and there are currently certified B corps in 34 countries worldwide.

Benefit Corporations

A Benefit Corporation is a legal structure for a business, as an L3C or LLC is. Benefit Corporations do not need to be certified, but they are required to make publicly available their performance on their social missions as compared to a third party standard. The basic idea behind a Benefit Corporation is that it is a for-profit, non-tax exempt entity that is legally able to emphasize it’s stated social or environmental goals ahead of maximizing profits for shareholders.

Maryland was the first U.S. state to adopt this structure in 2010. Currently this structure is available in Arkansas, California, Colorado, Delaware, Florida, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Washington D.C., with many more states pending legislation.

• Social enterprise: Building a better future

“The definition [of success] has expanded to include contributing something to the world.”

To many prominent entrepreneurs and impact-focused investors, socially-minded businesses are the direction of the future. Tim Berry, founder of Palo Alto Software, describes feeling that “the underlying story of a business, the people behind it, and its values, these all matter more now than they used to.” Blake Mycoskie, CEO of the social enterprise Tom’s Shoes,  says that he speaks with entrepreneurs and young people across the US, and he’s noticing a change in opinion on what constitutes success in the modern, globally interconnected world. “The definition has expanded to include contributing something to the world and living and working on one’s own terms,” Mycoskie says.

Given that of all existing U.S. social enterprises, 60 percent were formed after 2006, they just might be onto something.

Angelique is a skilled writer, editor, and social media specialist, as well as an actor and model with a demonstrated history of theater, film, commercial and print work.

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Business plans for social enterprises (SE) and social businesses

Writing a business plan helps to ensure you focus on the core of your business. You must concentrate on key deliverables in a resource-constrained organization and communicate effectively with your stakeholders, including your funders or investors, customers, community, board, employees and volunteers.

The value of social enterprise business planning

Business planning will help any social enterprise (SE) or social purpose business (SPB) to:

• Attract investment
• Identify risks
• Measure social or environmental outcomes
• Demonstrate that you are using a business approach
• Showcase the management team
• Build alliances
• Check thinking
• Determine feasibility

In a business plan, you must clearly articulate:

• The mission of your social enterprise
• The outline of specific actions to achieve your goals and objectives
• Establish targets for planning, measuring and improving performance
• Project the necessary resources, costs and revenues of your program

Sample business plan templates

Many business plan templates exist in the public domain, including this one .

The elements are best used as prompts by social entrepreneurs to build their own plan, assessing along the way whether or not the question (or element) is relevant for the Social Enterprise or the social business.

Social enterprise business plans versus non-profit plans

Description of the business/mission statement.

The social mission and the importance of meeting both the financial and social goals should be discussed in this section.

Management and organization

Financing the capacity of the organization is as important as supporting the programs. Include an assessment of the current organization, planned additions and/or changes as well as the cost of building the team’s capacity in order to achieve the projected growth. Demonstrate that the staff has both programmatic and business skills.

Market assessment and marketing plan

The plan should focus on delivering market-driven products or services as opposed to program-driven products or services to the target customer .

You will also need to articulate how to promote your social objectives along with the product and service.  Partnerships and collaborations extend the reach of the social venture.  Highlight your partnership strategy in this section.

Your marketing plan includes the strategies and tactics to reach your customers, partners and the community.  Outline the public relations, media relations, and advertising that will be required to meet your objectives. The marketing plan should be linked in with your financial plan and your overall strategy.

A solid financial position will allow you to pursue your mission with flexibility and high-quality service, beyond mere stability.  Investors must feel confident their investment will be used effectively to achieve both the social mission and financial results that will enable your organization to thrive and achieve continued growth.

The financial plan provides the framework for social entrepreneurs to forecast the resources they need to create and sustain social and economic value. Commercial entrepreneurs prepare business plans to show why they need money and how they will use it.  Social entrepreneurs should use the same approach and not worry about the limited resources currently available.

Social Enterprise Investors

Investors and funders alike want to know the cost to develop, start up, offer and deliver services or products, whether or not any one user or payer is willing to cover it. When interacting with potential funders or investors, you need a detailed budget and projection of required outside investment tied in with a plan to reach the desired market position.

Investors want returns, typically a blend of financial and social. Your plan must describe the potential “return” on investment for investors and the desired social outcomes, and provide a framework for assessing social performance .

Remember that a social purpose business is similar to any other for-profit business, but the organization will likely raise financing from investors who are interested in a double bottom line. Social enterprises in the non-profit environment will typically raise funding from traditional fundraising, loans and other forms of social finance.

Dees, J.G., Emerson, J., & Economy, P. (2001).  Enterprising Nonprofits: A Toolkit for Social Entrepreneurs . Toronto: John Wiley & Sons.

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Authored by industry experts, the Social Good Guides are a collection of subject specific guides created for startup changemakers.

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Business Plans and Planning for Social Enterprises and Nonprofits

LET’S START WITH SOME DEFINITIONS

A “business plan” traditionally refers to a lengthy, bound, and laminated document, written before a business launches, detailing its every element with charts, research, and projections. Even social-sector business plans are traditionally laden with unnecessary formality and time-consuming minutiae.

The modern social-venture business plan differs in three major areas from its more traditional cousin:

1. Formality: It is written in a natural, human voice, and shortened and streamlined for easy reading 2. Flexibility: It leaves room for multiple eventualities and is designed for frequent updating 3. Focus: It focuses on the rationale behind decision making, rather than on market research

SOCIAL-SECTOR BUSINESS PLANS

At its heart, the business plan is a roadmap for achieving organizational growth. The social-venture business plan must do this but should also address three other areas:

1. A social problem 2. How the programs, products, or services address that problem 3. How the organization plans to measure or prove that it is having a positive impact on the problem

OVERVIEW OF GUIDE

First, we address the idea that the business plan itself is obsolete. Second, we explore how the thinking process and the communication of that process to an investor are more important than the finished product. Third, we launch into the meat of the plan itself, analyzing each element and offering guidance. Finally, we go through a suggested process for getting started, briefly touching on research and then wrapping up with some useful tips and tricks. Throughout the guide, quotes are included from successful social entrepreneurs and thought leaders in the space.

This guide has been written for both for-profit social enterprises and nonprofit organizations. Even though nonprofits are impact- and mission-driven, in order to be successful and sustainable, they need a solid strategy, which is the result of sound business planning. Key principles such as generating revenue, increasing awareness (marketing, communications, and media), differentiation, and impact measurement are important for all organizations, regardless of tax status.

WHY WRITE A BUSINESS PLAN?

Primarily, of course, we write business plans to get money for our ventures. This is still true for most traditional businesses and is definitely true for new social ventures. Business plans are either required or requested by a wide range of impact investors and foundations such as Draper Richards Kaplan , as well as many entrepreneurial competitions and virtually all mainstream banks.

Yet over the last five years, with the popularity of such books as Business Model Generation by Alexander Osterwalder and Yves Pigneur and The Lean Startup by Eric Ries, the necessity of writing a plan at all has come into question. Daniel Epstein, the Co-Founder of the Unreasonable Institute , exemplifies this skepticism. A social entrepreneur recognized by both Forbes and the Aspen Institute, Epstein has helped dozens of startups get off the ground. “I have never written a business plan myself and I have never encouraged an entrepreneur to write one,” he says. “I believe that in today’s fast-paced world, it is more important to be adaptive than predictive.”

Indeed, the predictive element implied in the popular conception of the business plan may be the most challenging. If the future is unknowable, why even attempt to write about it? The answer: Planning is not the same as predicting. According to Matthew Klein, Executive Director of the Blue Ridge Foundation, a social enterprise incubator based in New York, “Businesses rarely, if ever, unfold the way they are described on paper.” Fortunately, writes Natalia Oberti Noguera, Founder and CEO of the Pipeline Fellowship , “Potential investors don’t expect spot-on predictions in business plans.” Instead, they’re seeking a deeper understanding of your venture and your mind.

It’s difficult to overstate the challenge of communicating the set of complex and interlocking ideas that make up a new venture, especially if the only avenues for communication are pitch decks and conversations. Business plans carry out this crucial task in a logical and thorough way. Even if, as is often the case, these ideas are less than thought through, the very act of business plan writing forces a social entrepreneur to make decisions, and is thus a useful tool for strategic planning. This process, writes Klein, “clarifies gaps in thinking, especially around the logic of how social impact will be created, and how deep it will be. It also forces specificity about the assumptions driving the financial model, which allows others to provide feedback.” Indeed, writes Adam Gromis, Business Development Manager of the impact investment firm Imprint Capital, “Business plans are critical to helping the social entrepreneur form clear ideas, articulate value to investors, and set guideposts for product and service implementation.”

Writing a business plan does something else as well: It demonstrates your thought process to people who are considering investing in you. Natalia Oberti Noguera says, “For- and non-profit investors are looking to better understand an entrepreneur’s thought process. Has she done the market research? Does she know who her competitors are and how her product/service differentiates itself from theirs? What pricing strategies is she considering and why?” John Wood, the Founder of Room to Read, a $50-million-a-year nonprofit that has built 15,000 libraries and 1,500 schools in the developing world, puts it even more plainly. “The world changes fast, and your business plan will quickly be obsolete. But you still have to write one to force yourself to get clarity in your own muddled startup mind, and to prove to potential investors and employees that you’re not just one more person winging it.”

THE ANATOMY OF THE SOCIAL-SECTOR BUSINESS PLAN

For both for-profit social ventures and nonprofit organizations, the basic building blocks of a business plan are the same: A narrative written portion followed by financial projections in a set of spreadsheets. In today’s world, assume that no one has time to read anything over 20 pages, so aim for 10-15, with liberal use of bullet-pointed lists. Make it a succinct, interesting, and compelling read. Finally, remember that there’s no “right” way to format or structure a business plan, so long as it covers the following major elements.

What follows is the outline for a typical social venture business plan.

EXECUTIVE SUMMARY

The purpose of this section is to allow a reader to get the gist of the business idea in a page or two. It should include all the basic facts about the organization: The who, what, when, where, how, and why. You should assume your audience has never heard of you and doesn’t understand your industry or field. Avoid jargon and use basic language whenever possible. Remember that this is not an introduction; it’s a summary. There’s no need for suspenseful or long lead-ins. Highlight the major elements and accomplishments of the venture to date. Finally, end with an ask. In your ask you should explicitly explain how much money you’re looking for, from whom, in what form (loans, grants, investments, etc.) and what you intend to use it for.

What the experts have to say

“Include a crisply and compelling ask in your business plan. If you do not make an ask, you have lost an opportunity.” – Maria Springer, Co-Founder and Executive Director of Livelyhoods

BUSINESS OVERVIEW

Here is where you can convey the basic but important details of the venture:

1. When the organization was founded 2. The number of employees 3. Type of legal entity you are/will be 4. Traction/accomplishments to date 5. Programs completed 6. Dollars raised 7. Items sold 8. Awards won 9. Partners secured 10. Team bios

Remember, leaving anything major out can make you seem evasive, prompting the question, “What else is this person hiding or not telling me?” So if you’re based out of your apartment, say so. Don’t leave the reader wondering where your offices are. If someone’s reading your plan, it’s likely they’re considering doing business with you in some way. Your goal should be to be thorough and transparent and to set the reader’s mind at ease.

THE OPPORTUNITY

This is where you begin to make your case. You describe the context for your idea: The facts on the ground, in the environment, market, or country you plan to enter that constitute the market opportunity. This is also where you give an overview of the funders, customers, consumers, donors, and/or beneficiaries who will support your idea or consume your service because no one else is doing it, doing it well, or doing it in the way that you’ll do it. Avoid the temptation to describe only the problem (i.e., “Villagers in rural Kenya lack access to clean water.”) Instead, frame the problem as an opportunity: “The current models of providing water access in Kenya have failed, major donors have recently announced a search for a new solution, and the new prevalence of cell phones in rural Kenya means that my mobile well-finding app will be able to quickly gain traction.”

“I can often tell which ‘social enterprise’ is really a nonprofit in disguise when its business plan starts with a ‘needs’ section like a typical grant application might. These are often great social enterprises, but need philanthropic capital. When a business plan starts with a section on the ‘opportunity,’ that’s when I sit up and ask if the team has the DNA for raising investment capital.” – Brian Trelstad, Partner, Bridges Ventures and former Chief Investment Officer, Acumen Fund

PROGRAMS, ACTIVITIES, AND OPERATIONS

What you do and how you do it. Describe your programs, products, and/or services in detail. Articulate exactly how your products or services will be delivered and what they’ll look like on the ground. Don’t shy away from detail, but don’t be redundant either. For instance, if you plan to host events, you don’t need to list out every space you know that you might rent. A good rule of thumb is to focus detail on the parts of your venture that will be substantially different from the “generic” version of your venture. So if you’re opening a restaurant, spend time describing your plan for hiring autistic cooks and sourcing your vegetables locally, rather than on which accounting software you’ll buy.

Analogous examples are useful: Case studies of businesses that have done what you’re proposing to do lend credibility to your ideas, whether those businesses are in or out of your sector. “These other sustainability consulting firms have experienced similar growth to what I’m projecting,” or “We plan to be like the Yelp for socially responsible small businesses.”

SOCIAL IMPACT AND IMPACT MEASUREMENT

“When writing business plans for a social impact business, it is really important to attempt to quantify the social impact that you are aiming for as opposed to just return on investment. Will you be alleviating diabetes by reducing obesity? How many people will you impact and what will be the overall benefit to the society at large?” – Jahanara Ali, Vice President, New York City Investment Fund

This is the main section that is truly unique to a social venture business plan. You’ve already made the case that you’ve identified an opportunity to create social impact. This section articulates how you’re going to do that and how you plan to prove it.

First, you need to explain your theory of change, or how whatever you’re doing is going to actually benefit society. You need to be as explicit as possible and, wherever possible, include numbers. This is also where you’ll include your logic model , in which you spell out exactly how your resources will lead to your programs, which will lead to outputs (i.e., apps downloaded, bednets delivered, classes held, etc.), outcomes (i.e., graduation rates will increase, employment rate will increase, etc.) for your target market/beneficiaries and the overall impact on society.

Source : http://diytoolkit.org/tools/theory-of-change /

“In a social enterprise, for-profit or nonprofit, the founders should be clear at least on their theory of change, their impact model, and how they’ll gauge their progress. Writing a plan that includes at least these components is critical.” – Matthew Klein, Former Executive Director, Blue Ridge Foundation

Finally, you should plan to measure your impact. Funders like to see that an entrepreneur has put serious thought into this element of their venture. This section should include a list of the metrics you plan to use to measure all of the above, and how you plan to capture the data for those metrics (surveys, tests, observation, user feedback, etc.).

To learn more about how to measure impact and what metrics to use, the Foundation Center has great online resources .

BUSINESS MODEL

“Business plans should show that the founders are thoughtful about their financial projections, their ability to scale, their social impact, and their traction to date in order to attract the type of investors that will help the company grow and achieve their goals. Business plans that integrate growth and impact comprehensively present the greatest opportunities in social entrepreneurship and impact investing.” – Bonny Moellenbrock, Executive Director, Investors’ Circle

This is the section in which you describe how your organization will generate income. This includes absolutely all forms of financing, including equity investments, grants, donations, loans, lines of credit, credit cards, personal savings, as well as earned revenue from sales, fees, advertising, or commissions. You should distinguish between funds you need to get off the ground (“startup financing”) and funds you intend to generate once you’re up and running (“revenues”). The more complex the business model, the more important it is that the business plan explains it. You want to show that you’ve thought this part through in as much detail as possible. For instance, if you’re planning to apply for grants, you should know the availability of the grants that support your type of venture and which institutions supply those grants.

MARKETING + SALES PLAN

In this section, you will articulate how you plan to communicate and market your venture. For many businesses, this is a make-or-break element. How will you promote your venture? What channels will you use to market or sell? Etsy? Twitter? Newspaper advertising? How will people know about your business? If you plan to use your own social network, hire interns, or partner with local nonprofits to spread the word, then say so.

MARKET ANALYSIS

This is where you give an in-depth description of the market for your products or services. What does the overall market look like? Are there a lot of other organizations doing what you’re doing? Is it a crowded market? Are there high barriers to entry? (Examples of high barriers to entry: Working an expensive industry or one that requires a lot of specialized knowledge, such as launching a new airline). What’s changed that makes your idea so timely? Basic demographic information is a nice thing to add here, but make sure that whatever you put in the plan relates directly to your idea. If you’re planning to launch a diabetes prevention initiative in a low-income neighborhood in Chicago, the overall breakdown of age in the city is less useful to your reader than data on the neighborhood’s obesity rates. This is an area that bogs many entrepreneurs down, so keep the section to half a page.

COMPETITORS

This is the section where you discuss the competition. Which companies are already doing what you plan to do? Who else is addressing the particular societal problems you plan to target? Who’s doing something similar in a different market, country or city? If there aren’t a lot of organizations doing what you plan to do, there may be a good reason. Nonprofits should pay special attention to the fact that other organizations, including nonprofits, governments, and for-profits, may be your direct competitors for charitable donations, grants, and customers.

A useful tool here is a competitor matrix. In this matrix, you use a grid to compare your organization with three to five major competitors along a range of factors that helps the reader understand both how you’re different and why you’re better. You can use this matrix in your pitch deck, as it’s useful for communicating the uniqueness of your idea. The main question to answer is: Why are you better? Always structure this section to give as much relevant information as possible about your competitors, but also present this information in a way that highlights your advantages. If you can’t think of any advantages, then you’ve got a problem. You could be better, cheaper, bigger, smaller, more nimble, malleable, more modern, more efficient, more holistic, etc. This is even more important in the social sector, since we have a responsibility to the people we want to serve not to dilute the funding pool with redundant interventions or make promises to vulnerable communities that we can’t keep.

You will want to include the following information:

• Products/Service • Price • Sales Method • Expertise • Reputation • Location • Demographic • Marketing Reach • Social Impact

“We value social entrepreneurs who have a business track record, whose strategy has continued to evolve with demonstrated market needs, and who have talked to as many of their stakeholders as possible.” – Adam Gromis, Business Development Manager, Imprint Capital

Any investor, foundation program officer, or donor will tell you that they fund the entrepreneur, not the idea. You can have the best possible idea, but if you don’t convey the necessary experience, vision, professionalism, and charisma, you won’t convince your audience that you’re the right one to execute it. Full professional biographies should be included for you and your entire team. If their biographies look a little weak in comparison to your vision, then get some advisors to sign on and feature their biographies prominently. Also be sure to include the roles that each team member plays or will play.

FINANCIAL NARRATIVE

The financial narrative section is where you lead your reader through your financial projections. Explain upfront anything that feels outlandish or might scare someone away. Lead your reader through your financials so that everything makes sense. For instance, if your average meal price is going to be three times the industry average, explain your rationale behind that decision and explain how it will go back down. Sample sentences might read: “While we plan to charge $10 per popsicle, we are confident that we can achieve our monthly sales targets by marketing exclusively to extremely affluent consumers and popsicle aficionados,” or “While foundations will be the majority of our revenue for the first two years, we plan to get that percentage down to 50% by year three as we ramp up our individual donor outreach and earned income streams.”

Financials are the most important part of the entire business plan, but many social entrepreneurs leave them for last, often because they have a difficult time putting them together. Creating the financials first and using them to generate the business plan tends to be the most efficient method of business plan creation. Indeed, even the strongest advocates of “lean” business planning advise entrepreneurs to create solid financials. Numbers root the ideas in reality and force the entrepreneur to validate actual assumptions with a rationale. Remember, you should be prepared to defend every number you put on paper.

The financials should detail every dollar that you plan to have coming in or going out of the organization, as well as the assumptions underlying the projections: The average fee you’ll charge a client, how many meals will be served in the first year, how many families will receive services, how many kilowatts will be produced, the average donation you’ll receive from funders, the average number of students per class, etc.

Traditional business plans include at least the following financial documents: Baseline assumptions, sources and uses, break-even analysis, cash-flow projection, a profit and loss statement, and a balance sheet. For the majority of cases, you can get away with just a projected profit and loss statement (i.e., pro forma, P&Ls, income statement, or financial projections), which is basically an organizational budget with the sources for your money detailed as well. A good idea is to do the first year month by month and then two more years just by year.

See the Definitions section below for more information and resources.

BEFORE YOU BEGIN: DO YOUR RESEARCH

Pick up a sample business plan. You can download dozens of examples for free online at bplans.com . Find the table of contents. You’ll see chapters with titles such as “Operations,” “Competition,” and “Market Summary.” These topics represent subject areas that you should be able to speak articulately about as they apply to your venture. If someone asks about your marketing strategy, you should have an answer beyond: “I’m going to tweet a lot.” If someone asks when you estimate you’ll be operationally profitable, you should be able to confidently say, “Ideally, by the end of our second year.” If someone asks you who your major competitors are, you should be able to list them, and articulate how your organization is different from your competition. And if someone asks you about the largest foundations that fund organizations in your field, then you should be able to speak knowledgeably about them. Unless you’ve been doing whatever you’re planning to do for several years and can speak with confidence to every line item in the business plan’s table of contents, then you’ve got some research to do.

“Investors and stakeholders will push hard on what you place inside the plan so one needs to have all the answers to potential questions before presenting it to anyone.” – Rob Holzer, Founder and CEO, Matter Unlimited

BEGINNING THE PLAN

1. Open a blank spreadsheet. Create one sheet for the educated assumptions that you will base on the following types of information:

• How many units do you think will sell in your first year? • How much will they cost and how much will you charge? • How many people will you serve in your first month? • How much will it cost to serve them?

2. On the next sheet figure out your startup costs:

• What will you need to get your business off the ground? • What will your operations cost? • How much will you need to budget for initial marketing costs (which tend to be significantly higher at the beginning)? • How much money will you need to cover costs until you begin to generate enough revenue to survive?

3. On another sheet, create your “profit and loss statement.” Write Month 1, 2, 3, etc. for the first year along the top, and then title the rows with your income sources and then your expenses, all detailed in separate line items. Be as detailed as you can. You can categorize everything later.

4. Fill in the cells for the revenue projections and startup costs with formulas based on the numbers in the assumptions documents, so that when your subsequent research or experience make you change your numbers, you can easily adjust them and they will change the entire document. Every cell in your projection should contain a formula that links back to your assumptions – this will help in the future, as your assumptions will change with time.

5. When you’re done, you should have a big, ugly budget-like spreadsheet, and a list of things you need to research and figure out. These are the base of the financial model you’ll use to create your final budgets and projections, and a document that will eventually become your business plan.

TOP TWO THINGS TO REMEMBER

1. The business plan is essentially a well-researched argument that defends a basic thesis: First, that the venture it describes will be able to sustain itself, and second, that you’re the one to execute it. Traditionally, the business plan is the entrepreneur’s proof that the proposed venture will create profit for her backers. Social entrepreneurs must instead (and sometimes also) show that their ventures will create social impact.

2. The business plan should be explicit, transparent, and comprehensive. The amount of respect an investor has for the entrepreneur when presented with a business plan is equal to the scorn he or she will feel if it is poorly executed. If readers are left with the impression that the author plays fast and loose with the truth, is willing to omit key points, or has failed to conduct basic research or put in basic thought, they will feel disrespected and be disinclined to believe anything else in the plan. Red flags include, but are not limited to:

• Badly researched, incomplete, or superfluous and irrelevant data • Bad spelling and grammar • Wildly overly-optimistic projections • Absence of financial projections • Plainly incorrect assertions to support arguments • Absence of major potential obstacles or competitors

ASSUMPTIONS

Key components of your plan and model that are projected and not yet proven. These anticipated inputs should be modeled, researched, and thought through as much as possible prior to creating your plan. Assumptions may be related to market demand, sourcing, competitors, sales targets, cash flow, and impact.

BALANCE SHEET

A summary of a company’s financial position over a given time period (usually a calendar year). Balance sheets are comprised of assets, liabilities, and ownership equity.

For more information, see Investopedia and Accounting Coach.

BREAK-EVEN ANALYSIS

A method for determining whether a business will be able cover its expenses and be profitable. By identifying fixed and variable costs, a break-even point for the amount of sales needed can be calculated, and pricing structures can be adjusted accordingly.

For more information, see Inc. and U.S. Small Business Administration.

An operating strategy that outlines what and how a business or organization will do to generate revenue, create social impact, and be sustainable. Business models include an outline of the organization’s place within the larger value chain as well as information about where it will get its resources.

For more information, see MaRS.

CASH-FLOW PROJECTION

A tool for cash-flow management that shows how anticipated revenue would be generated and spent. It can help identify how much capital investment is needed for a business idea and when adjustments to investments might be needed.

For more information, see Small Business: Canada.

COMPETITOR MATRIX

A method used to analyze a company’s competitive advantages in the market, by graphing its features and benefits vertically and its competitors horizontally, with comparative columns.

For more information, see Entrepreneur.

ELEVATOR PITCH

A summary of your business model and strategy that’s short enough to be communicated during a brief elevator ride. Elevator pitches are usually condensed to one to two sentences.

For more information, see Forbes.

FINANCIAL MODEL

A tool that is used to forecast and analyze financial performance.

For more information, see Finance Walk.

LOGIC MODEL

A method for outlining the relationships between operating resources, the activities of your business, and the desired outcome/impact. Logic models are built upon five key components: Inputs, activities, outputs, social impacts, and assumptions.

For more information, see the following resources:

• Academies for Social Entrepreneurship • The Pell Institute • W.K. Kellogg Foundation

An initial presentation deck for potential investors to determine whether to further evaluate your business opportunity. Pitch decks summarize the problem you’ve identified and the solution your business offers, your business model, the technology or resources needed, marketing and sales, a competitive analysis, and information on the management team, financial projections, and background information, along with the timeline and funds needed.

Calculations for financial results in a hypothetical or pending situation, often used to estimate the effect that a particular business decision or opportunity may have on current/actual financials.

For more information, see Investopedia .

PROFIT AND LOSS STATEMENT (P&L)

A summary of financials over a specific period of time (usually a fiscal quarter or year) that includes revenues, costs, and expenses.

For more information, see Investopedia.

THEORY OF CHANGE

An outline showing the pathways of how a business or organization will achieve the goals and results it needs to create change and impact.

For more information, see Center for Theory of Change and The Stanford Social Innovation Review article the Six Theory of Change Pitfalls to Avoid.

Social Good Guides (SGG): What is a business plan? 

Mischa Byruck (MB): “Business plan” has two definitions. The first and most common definition is the following: A thorough, researched document describing in great detail a business idea (typically, though not exclusively, before it launches) and including cited sources and appendices. I’ve read 200-page business plans, which I thought were a little excessive, but anything shorter than ten pages would have a hard time being taken really seriously as a plan.

The second definition is simply an entrepreneur’s plan for launching his or her business: Strategy, operations, marketing, price points, etc. Technically, the entire thing could be in someone’s head, but that would make it an incredibly difficult body of work to share.

SGG: Why do changemakers need to write business plans?

MB: They don’t need to, but I think they should. Everyone has an idea for a business, and though many sound good at first, few end up working out. So most people enter into conversations with aspiring entrepreneurs carrying an assumption of failure. Every entrepreneur starts out facing incredulity. The business plan is just one way of overcoming people’s natural tendency to think you’re crazy.

At best, business plans are hedges against failure, redundancy, and wasted time. We in the social sector should care twice as much about minimizing our chances of failure because of the importance of our missions and the people they aim to serve.

Of course, plenty of entrepreneurs don’t end up writing a business plan. The need for one increases with the complexity of your business model. Your business model is how your company creates, delivers, and captures value. It is the big-picture plan of what your venture will look like, providing an organizational backdrop for how your venture will provide value to society. In terms of your business plan, let’s say, for instance, that you’re an experienced web designer and you’re quitting your job to start your own design consultancy focused on helping nonprofits visually express themselves. You’re going to network, get clients, charge them fees, and do design work – a pretty straightforward model. You could definitely benefit from doing a competitive analysis, but you’ll probably be able to get the business off the ground without a full plan because you know your industry. On the other hand, if your idea is really complex and innovative, then a plan can help you refine it enough to communicate it effectively. I’ve seen dozens of entrepreneurs fail. It wasn’t always for lack of a plan, but there have been plenty of times when a plan would have saved both time and money, and maybe even the organization.

SGG: Everyone’s telling me my idea is great – shouldn’t I just go ahead and move forward with it?

MB: A couple of things: First, I don’t recommend writing a business plan at the expense of “doing.” The two aren’t mutually exclusive. A business plan is just a plan, and planning can be a pretty good idea. Once you’ve accepted that, it’s just a matter of how much planning you intend to do. Second, it’s likely that the audience you initially speak to about your idea will be comprised mostly of family and friends. Despite their incredulity, they will almost universally encourage you. Brutally honest feedback is a rare commodity in general and especially in entrepreneurship. People naturally don’t want to discourage someone, especially someone they know, from pursuing their dreams. Also, most people simply won’t know enough relevant information to feel comfortable offering a critique. This is especially true for social ventures, which put additional social pressure on friends and family to be encouraging. Encouragement is nice, but if you show someone a business plan, you can watch the person go from “Cool idea, good for you” to “How can I get involved?”

SGG: When in the first twelve months should a startup changemaker begin to think about writing a business plan?

MB: As soon as possible. Even at the earliest stages, the plan helps clarify and cut through the noise to articulate the essence of the organization and how it will succeed. That doesn’t mean that the entrepreneur should write the plan immediately. I advocate starting to do research and write the plan, and, if you realize that you haven’t fleshed out the idea enough to answer the questions it poses, then set it aside and come back to it. As for the model, it may take even longer to figure that part out. Again, the main thing is to spend time thinking about it. Stubbornly ignoring the inevitability of spreadsheets is a scarily common problem among social entrepreneurs.

SGG: Where does the business plan fit in to the general suite of tools that a social entrepreneur should have at her or his disposal?

Every social entrepreneur should, at the minimum, have the following four tools for communicating her or his idea:

1. Business plan 2. Executive summary 3. Pitch deck 4. Website

Write the business plan so that you can present the most important information in the executive summary. Then, distill the essence of your idea and the most compelling points into the pitch deck and your elevator pitch. When you meet a potential investors/supporters/advisors/contacts/clients/partners, present these materials to them in the reverse order. First, give them the pitch. They’ll go home and visit your website. If they’re interested, shoot them the pitch deck you’ll have put together. Another bite? Send the one-pager. If they really want the details, send the business plan with the financials.

SGG: Who should write a business plan?

MB: Nine times out of ten, founders should write their own business plans, and if they get someone else to do it, they should make sure to engage that person pretty consistently. I advise clients to stay away from the bulk business plan creation companies because the document they’ll end up with is often too generic. As I’ve discussed, a big part of the value of the plan is the process of writing it. If you don’t engage in that process, the document itself is next to useless. Case in point: A professional prepares the business plan for you, but then your projections change. All of a sudden, you’re stuck with an unfamiliar document that is no longer a reflection of your business and that you can’t show to anyone without looking unprofessional and inconsistent.

SGG: How does a business plan differ from a grant application?

MB: Business plans differ from grant applications in a few major ways. Business plans are arguments for the viability (overall health and growth) of the entity itself. They take a wide view. Grant applications are arguments for the relevance of a specific program to the foundation’s stated issue areas or target demographic. For example, a grant application may ask about the intended impact of the program in question, while a business plan for a social enterprise or nonprofit would be concerned with the long-term impacts of all the organization’s programs and with the financial viability of the organization itself.

The other major element of a grant application is that the writing must, by necessity, conform to the expectations of the application, whereas a business plan should strive to be as true to the essence of the organization and its founders as possible. For instance, if the grant is for a foundation primarily interested in education, then the language the organization uses to describe its programs will inevitably be weighted to favor education-related phrases and use examples of programs and operations that highlight education and learning. Another example: Grant applications often ask questions about how other organizations might use your work as a model, emphasizing knowledge sharing amongst the foundation’s grantees. This wouldn’t typically be within the purview of a business plan. This is what’s great about business plans. With grant applications, you’re forced to jump through hoops and write things simply in order to appeal to prospective donors. With business plans, if it’s unnecessary, then it doesn’t belong. Every single sentence in the business plan should contribute to its thesis, which is always the same: “We will succeed.”

SGG: Who is a business plan written for? 

MB: A business plan is written for everyone. It’s what you give people after you’ve already hooked them on your idea with your pitch, your pitch deck, and your one-pager. The business plan is what makes it all real. Here are some examples of when one will come in handy:

• You meet a friend whose mother or father is a potential donor or investor, but wants to see that you’re serious. • You realize that you need advice on fundraising and you happen to have taken a class with an adjunct professor who would be a great advisor, but it’s been a while since you’ve spoken. • You met a leader in your field at a conference and would love him or her to become a mentor. • You meet a foundation program officer and want to impress that person. • You’ve just brought on some summer interns and you want them to fully understand your idea and where the organization is headed. • You’re interested in a bank loan to get your business off the ground.

A business plan is also written for your own use. Here’s some examples of when you’ll find it useful:

• During the writing process, you realize that a specific element of your idea needs to drastically change. • Your market research brings you in touch with an industry expert, who reveals that there are too many competitors in your chosen field, and you have to pivot your idea to change the focus, provide a new iteration on the idea, and differentiate yourself. You can learn more about pivoting via the Lean Startup principles here . • You’ve had a hard time articulating how the whole impact measurement piece will work using only PowerPoint and your imagination. • You’re writing a grant application and need to remember all the challenges you may face. They’re in your SWOT analysis (a summary of your business Strengths, Weaknesses, Opportunities, and Threats) and you’ve done the thinking already.

SGG: Are there different types of business plans that are written for different scenarios?

MB: Not really. I don’t advise changing your document based on who you’re pitching to. Most people will accept a plan as long as it covers the standard sections well. Many funders will have you write a specialized grant application anyway, though you should definitely feel comfortable pulling language from one for the other.

SGG: Is there any connection between a business plan and a legal structure? 

MB: I tend to advise entrepreneurs to first figure out how their business will work, and then pick the legal structure that best accommodates it, rather than the other way around. Figure out what the business looks like specifically. Ask yourself, how it will make money (grants, earned income, sales, fees, advertising, etc.), what the ownership structure and financing will look like, if the entity will take on investors and be able to offer them a return, or if it’s more likely to grow through foundation grants. These are all important elements of a business plan and will help guide the discussion and decision about the legal structure.

SGG: How does a business plan relate to a business model? 

MB: If the business is the body, the business plan is the skeleton, supporting the whole thing, and the business model is the heart, pumping money through the body. Business models are about the essence of the organization’s value proposition and, specifically, about growth. Business plans are all the boring but important operational details about how to achieve the model. Let’s use the example of Room to Read, one of my favorite organizations. It provides books, libraries, and schools to low-income communities across the world. Its business model is based on efficiency, accountability, and transparency: It leverages relationships with construction supply companies to obtain materials at cost, insists that the members of the communities it serves contribute their own labor to every construction project, and it aggressively and creatively markets these efficiencies to high net worth and regular donors through a network of chapters throughout the developed world. Room to Read’s business plan would be an explanation for how all these things will actually come about.

SGG: What are the most significant errors you’ve seen your clients make in the business plans they’ve shared with you? How did those errors affect the venture development stage of building their businesses?

MB: So many! Omitting the marketing section, overgeneralizing the market summary, including useless information just to fill space, wildly overoptimistic and unsubstantiated revenue projections, bio sections that only include resumes, having no profitable business model, or basing the success of the business on a single, unnamed, and unsecured angel investor.

The biggest one is probably writing the whole thing without opening up a spreadsheet. I can’t tell you how many clients have approached me with a business plan that’s done “except the numbers.” The numbers should be tied into the heart of the business plan. Here are a few more:

1. Writing a series of documents and thought pieces about your organization without putting it down into the format of a plan. This ends up producing lots of words, but still nothing to thoroughly explain your business to an investor, a supporter, or potential advisory board member.

Another: People not practicing their pitch! Spending a lot of time articulating the background, how they came up with the idea, but leaving out crucial information and looking scatterbrained.

2. Getting feedback from friends only – they tend to give you kudos on a great idea, while people you don’t know as well may be more likely to critique you. Also, many people ask for feedback on their idea itself, but what they could really use is feedback on the plan for achieving it. That’s much harder to get people to think about.

3. Trying to get out of writing a business plan by creating a PowerPoint deck. People come to me with decks that are far too long, or slides that are far too filled with words to be effective communication tools. It’s a lazy play – and ultimately ineffective. Write down your ideas in a Word document. Get them all down. It’s infinitely easier to distill words from a Word document into a PowerPoint deck than to try to compose on a PowerPoint deck from scratch. You’ll keep on oversimplifying your point or mixing too many ideas onto a single slide.

SGG: What about using Lean Startup methodology and creating a minimum viable product before a full-blown company?

MB: The Lean business methodology, at its heart, is about figuring out an idea. I see it as a more involved, iterative method of conducting market research. Once that’s done, having a business plan is still a lot more useful and impressive than not having one. But I’ve seen lots of entrepreneurs using the Lean philosophy as an excuse not to engage in the hard work of researching their market and competitors and planning out their revenue. They end up compounding their mistake by asking key potential contributors to help when their ideas are really bad. A lot of good ideas come out of bad ones – but first impressions tend to stick.

You write the business plans to communicate a complex idea, to show how all the pieces come together, to help yourself figure out what you don’t already know, and to remind yourself about where you’re going. The point is really not to conform to a specific template. The point is not even to have a plan. The point is to go through the planning process so that you avoid at least the most basic pitfalls.

SGG: What do you think about successful entrepreneurs who in interviews say, “I never wrote a business plan” or “I don’t believe in business plans”?

MB: For each of those successful entrepreneurs, there are literally dozens who failed, and in many cases, might have either succeeded with a plan, or, more likely, realized they were going to fail and saved themselves (and their families) money. Of course, some people look back on failure and realize it was important and even helpful. And then there are people who really just want to have the entrepreneurial experience and don’t care.

I know plenty of people who have gotten their businesses off the ground without a plan. These people typically fall into a few categories: People who have the money to start their businesses and don’t need to convince anyone else of the validity of their idea, people with a really common business model like a restaurant or a sole proprietorship consulting firm, people who know their industries backward and forward, and people with tech startups that can easily shift and pivot. In these cases, I suggest at the minimum figuring out the financials and drafting a one to two-page summary and a marketing strategy to refer to internally and to figure out what you don’t already know.

SGG: Should people sign an NDA before looking at the business plan?

MB: NDAs, or non-disclosure agreements, like patents, trademarks, and copyrights, are important for protecting information that is both difficult to come by and easy to steal. The information in business plans tends to be neither. NDAs are also great for protecting the privacy of a company’s actual numbers. Few entrepreneurs want the world to know what their real margins are. Still, in practice, they slow down the flow of information. My advice: Include an NDA if you’ve got seriously sensitive information in your plan, but don’t waste too much time on one.

• The Social Entrepreneur’s Playbook by Ian C. MacMillan and James D. Thompson

BUSINESS PLAN TEMPLATES

• Bplans • Score • U.S. Small Business Administration

BUSINESS PLANNING

• Business Planning for Enduring Social Impact , Andrew Wolk and Kelley Kreitz, Root Cause, 2008 • U.S. Small Business Adminstration

• Building a Good Elevator Pitch for Your Nonprofit • Inc.’s How to Pitch to Angel Investors • Inc Magazine’s article, “ 15 Dumb Mistakes to Avoid When Pitching Investors ” • PitchEnvy , a great source of pitch decks • TED Talk: Pitching to VCs

SWOT ANALYSIS

• Community Tool Box

BUSINESS CANVASES

• Business Model Canvas by Alex Osterwalder and Yves Pigneur • Lean Canvas by Ash Maurya • Social Lean Canvas • Social Business Model Canvas from the Social Innovation Lab

ADDITIONAL ONLINE RESOURCES

• Grantspace.org • Seth Godin: The Modern Business Plan • The Ultimate Dictionary of Lean for Social Good by Leah Neaderthal and Leanne Pittsford • William James Foundation • William Sahlman at Harvard Business School

• A Legal Primer for Changemakers • Accounting & Taxes for Social Enterprises: Your Journey Starts Here • Evaluation + Impact Assessment • Funding Your Startup Social Enterprise • Marketing: Lean In and Control The Lane • Nonprofit Funding and Long-Term Sustainability • What’s Strategy Got To Do With It?

The guides are primarily intended for social entrepreneurs based on the United States, though some of the resources may be generally of interest to an international audience. Please remember that many of the topics covered by the guides, such as corporate structures, laws and legal customs, accounting, business planning, funding and fundraising, etc., vary widely from country to country, and that the information presented here may not be correct, applicable, or relevant to any other country or jurisdiction.

We strongly advise those of you building social impact ventures outside the United States to seek advice and support from reputable professionals who are licensed in your jurisdiction, and/or have area expertise in the country where you plan to build your businesses. For more information, please see our Terms of Use .

MISCHA BYRUCK: GUIDE AUTHOR

Manager of strategic partnerships, datakind, website | | linkedin | @mbyruck.

Mischa Byruck is a business consultant with a focus on social enterprise and an extensive finance and operations background. He was most recently Manager of Strategic Partnerships at DataKind, an organization using Data Science to tackle humanity’s greatest problems. In 2004, Mischa launched 2004ward, a project that registered over 10,000 new voters in seven states. He later worked as an activist and community organizer, helping to prosecute corrupt developers, defend immigrant rights, raise the minimum wage and defeat anti-gay laws. Following Hurricane Katrina he founded Emergency Communities, an innovative $10 million humanitarian relief organization that built a chain of relief camps along the Gulf Coast at which 4,000 volunteers delivered food, clothing and shelter to over 50,000 people. As a social sector consultant Mischa has worked on the East and West Coasts, in the Midwest and the Deep South, and in Brazil, Ghana, India and Nepal on projects with the City of New York, the United Way, Oxfam, USAID, the United Nations, and the Ford Foundation. He has also worked with hundreds of for-profit, nonprofit, and hybrid startups, launching over 70 new businesses and raising millions in growth capital for his clients. Mischa is a 2013 Coro Leader, a 2012 NYU Reynolds Fellow in Scaling Social Enterprises, a 2009 Wagner Scholar, and a 2007 Nominee for CNN Hero of the Year. He holds a BA from Columbia University and an MPA from NYU.

ANNA CAROLLO: COVER DESIGNER

Anna Carollo is a graphic designer who is passionate about typography, print and digital publications, campaign/identity design, and social change. Originally from the Midwest, she lives and works in San Francisco.

MARC O’BRIEN

Consultant and strategist, social good guides, website | linkedin | @think5577.

As a Design Strategist and Creative Facilitator, Marc focuses on human-centered design and social innovation. Marc organizes, plans, and leads creative workshops to create positive change and tackle some of today’s gnarly social challenges.

Through playful exercises, he helps people come up with fun, usable, and innovative solutions to challenges. With a graphic and web design background, Marc is able to put ideas generated from these workshops into action, which continues conversations and encourages further collaborations across multiple industries. He loves finding ways for organizations to make huge changes and impacts in unexpected places.

Since 2009, Marc been actively involved, as both an advisor and facilitator, in Project M, an immersive program designed to inspire and educate young creative individuals by proving that their work can have a tangible impact on the world.

A multitude of his collaborative workshops and projects have been featured in the New York Times, Fast Co, AIGA, GOOD, Print, ID, PSFK, and various other design and culture outlets. Marc has lectured and facilitated numerous workshops at a number of distinguished universities and conferences throughout the country. Among other things, Marc is building out Secret Project @ CCA along with teaching in the graphic design department, and leading GOOD SF. He also rides a bamboo bike, makes homemade hot sauce, and unplugs in the outdoors. You can follow him on Twitter, @think557

SHANA DRESSLER

Founder, social innovators collective series producer, art director and editor, social good guides, website | | linkedin | @shanadressler | @sic_org.

In 2011, Shana Dressler founded the Social Innovators Collective with the mission to train and nurture the next wave of social change leaders to help them achieve measurable impact and financial sustainability. Since then she has been creating and leading workshops on business development for social enterprises and nonprofits at General Assembly, New York’s premiere center for entrepreneurship, the Social Good Summit, and social enterprise conferences at Harvard, Columbia, New York University, Brown, the School of Visual Arts, Rhode Island School of Design, and others. In 2014, she designed the curriculum for a startup business school designed to support 21st century entrepreneurial problem-solvers and creatives tackling the most pressing social and environmental challenges of our time.

A deeply committed social entrepreneur, Shana is widely recognized as the first person in New York to organize rigorous educational programming for social entrepreneurs in startup mode. To fill a notable gap in the lack of resources available, Shana co-created the Social Good Guides, a series of 20 guides focused on the essential small-business skills that would-be changemakers need to know and an 8-week workshop called Social Good Startup: Idea To Launch.

Shana is an Aspen Institute Scholar, a member of the International Academy of Digital Arts and Sciences, and a judge for The Webby Awards. In 2014 she became a Delegate to the United Nations Foundation Global Accelerator which brought together a “100 of the world’s top entrepreneurs to work together with policy leaders on global issues.” Shana was recently honored by the World CSR Congress as one of the 50 Most Talented Social Innovators. In addition to frequent travel to far-flung places, Shana loves all things chocolate, and makes her way around New York on a midnight blue Vespa. You can follow her @shanadressler and @sic_org.

THE SOCIAL GOOD GUIDES PRODUCTION TEAM

Editor: Kristen Hayes Web Developer: Keyue Bao Consultant + Strategist: Marc O’Brien Series Producer, Art Director + Editor: Shana Dressler

If you would like to make a general donation so we can finish the last four guides, click here . If you received value from reading this guide, and you would like to make a donation click here .

Please donate. Your support is needed and appreciated!

TERMS OF USE

Text © 2015 Mischa Byruck Cover © 2015 Anna Carollo Graphic design and all other elements © 2015 Social Innovators Collective.

All rights reserved. All guides have been created for private use. No part of this publication may be reproduced, distributed, published, transmitted, photocopied or stored by third parties for download or for sale in any form or by any means, including electronic or mechanical methods, except with the written permission of the publisher, the Social Innovators Collective. Please see our full Terms of Use for more information.

Sprout Social Pricing (2024 Guide)

Published: May 29, 2024, 1:00pm

Table of Contents

What is sprout social, sprout social pricing and plans, sprout social discounts, sprout social cost vs. competitors, sprout social free trial: what you should know, additional sprout social costs, frequently asked questions (faqs).

Sprout Social is a powerful social media management tool that lets you control all of your accounts in one place. If you’re considering this software as a solution for your social media woes, you’re likely wondering what it costs. Sprout Social pricing varies depending on the plan you select and whether you pay monthly or annually. Keep reading to see what you can expect to pay to use Sprout Social.

Featured Partners

Sprout Social

Standard $199/seat/month; Professional $299/seat/month; Advanced $399/seat/month *pricing is based on annual subscriptions

30 day free trial (all plans)

Facebook, Instagram, Twitter, LinkedIn, Youtube, TikTok, Pinterest, Reddit, Tumblr, Yelp!, Glassdoor, Trip Advisor, Google My Business, and more

On Sprout Social's Website

Professional $99/month; Team $249/month *pricing based on annual subscriptions

Facebook, Instagram, Twitter, LinkedIn, YouTube, TikTok, Pinterest, Threads (beta), Google Business Profile and more

On Hootsuite's Website

Sprout Social is a platform that allows you to manage all of your business social media accounts in one place. It lets you schedule posts, manage messages and even create content calendars all in one intuitive dashboard. Better yet, it also compiles publishing and engagement data from all of your profiles to curate a comprehensive analysis of your success. To learn more about what this tool can do, check out our Sprout Social review .

Sprout Social has three main plans as well as one custom-built plan. You can switch plans at any time, which makes it great for scaling up as your business grows. Sprout Social lets you pay with credit cards or PayPal.

Sprout Social Tiered Features and Plans

Price: $199 per month (billed annually) Best for: Businesses starting with social media management without a ton of accounts will appreciate the lower cost of the Standard plan.

Sprout Social’s Standard plan includes five social profiles, meaning it’s best geared toward businesses without a huge social media presence. With this plan, you can manage your content calendar, incoming messages and even reviews all in the same place. You can even get suggestions from the company’s AI Assist tool if you need help enhancing your posts.

Professional

Price: $299 per month (billed annually) Best for: Businesses with accounts on nearly every social media site will love the Professional plan as it lets you connect to all of them without limits.

The biggest benefit of upgrading to the Professional plan is getting unlimited social profiles, which is super-helpful if you maintain accounts on all of the web’s most popular sites. You’ll also get competitive reports for Instagram, Facebook and X (formerly Twitter) to help you tailor your strategies accordingly. Pair that with X keyword trend analysis, paid social reporting and response rate and time analysis reports and the Professional plan is a highly effective tool for businesses looking to conquer social algorithms.

Price: $399 per month (billed annually) Best for: The Advanced plan is relevant for agencies managing multiple brands at a time as it provides more in-depth sentiment reporting and chatbots.

For even more functionality, the Advanced plan can be a good pick. It provides a full digital asset and content library along with more advanced AI Assist message tone and length edits, so coming up with content for your accounts should never be a problem. Another cool feature is the addition of automated chatbots on X and Facebook. We also like the inbox sentiment classification so you can take your brand’s online temperature quickly.

Price: Custom pricing Best for: If none of the other Sprout Social plans fit what you’re looking for, then you can work with the team to create a plan that’s ideal for you.

Sometimes, your business just needs to have a customized solution and that’s what the Enterprise plan provides. You’ll get tailored implementation and onboarding to help your teams get a better handle on how to use the software. You’ll also benefit from consulting services to help you improve your social media presence.

Which Sprout Social Plan Should You Choose?

Overall, we recommend the Professional plan for most users. It’s the cheapest plan with unlimited social profiles, which is important if you want to maximize your web presence. However, the Standard plan could be good if you’re just getting started with a social media management tool. Finally, because the Advanced and Enterprise plans are so expensive, we only recommend them for large companies or agencies dealing with multiple brands and accounts.

Annual Discount

If you’re able to commit to a year-long subscription with Sprout Social, you can save 5% on your payments. You’ll pay the annual lump sum upfront rather than monthly. Here’s how the annual totals break down:

• Standard Plan: $2,850
• Professional Plan: $4,550
• Advanced Plan: $5,700

Agency or Nonprofit Discount

Sprout Social has special pricing for agencies, although it doesn’t specify the cost. There may also be special pricing for nonprofits, but again, Sprout Social doesn’t disclose specifics. Your best bet is to get in touch with the customer service team to see what discounts you might be eligible for.

Sprout Social is one of the best social media management software available, but there are also other options. Here are two high-ranking competitors with a much lower cost.

Sprout Social vs. Zoho Social

One immediate difference between Sprout Social and Zoho Social is the price: Zoho Social is far cheaper. But with that cheaper price tag comes far fewer accounts. You also don’t get nearly as many analytics, reports or automation features. However, if your company isn’t out to create a social media empire, then Zoho Social is a great tool to start with.

Sprout Social vs. Hootsuite

Hootsuite limits you to a maximum of 20 social accounts, but that should be more than enough for most users. It also comes with up to five users—Sprout Social requires you to pay an expensive fee for more than one user. Hootsuite gives you unlimited drafts and scheduled posts, along with an extensive content asset library and an all-in-one inbox. Learn more in our Hootsuite review .

Sprout Social currently offers a free trial to let you test out the software. You can try out the Standard, Professional or Advanced plans without providing credit card information. All you have to do is provide your name, email and some information about your business and you’ll get access. You’ll be prompted to connect at least one social media account before getting started.

How Long Is the Free Trial?

Sprout Social’s free trial is for 30 days. After that, you’ll need to decide what plan you want. You can see your current plan details under the “Billing & Plan” section of your account.

What’s Included In (and Missing From) the Trial?

All of Sprout Social’s features are included in the free trial. If you’re not happy with the plan you signed up with, you can switch to a different plan throughout the trial to test out the different levels and see what you’re missing.

Can You Extend A Trial?

No—when your trial ends, you’ll be prompted to choose which plan you’d like to sign up for. However, if you’re not ready to commit and want to keep exploring Sprout Social, you may be able to schedule a customized demo with the Sprout Social team.

Add-on Solutions

Sprout Social offers a handful of add-on solutions. However, it isn’t transparent about what they cost so if you’re interested, you have to reach out for custom pricing:

• Listening: Helps you find trends that can inform your social media marketing strategy .
• Premium Analytics: Provides an additional 150 reports and interactive dashboards.
• Employee Advocacy: Allows employees to share curated content on their personal networks.
• Influencer Marketing: Helps you connect with influencers in your niche.

Premier Success Plan

Sprout Social also offers a Premier Success Plan that again, has custom pricing. With it, you’ll receive the following benefits:

• Platform optimization
• Product roadmap
• Two-hour response time
• One-on-one onboarding
• Direct access to customer success team

Is Sprout Social worth the money?

For small businesses that don’t have a huge social media following yet, Sprout Social is likely too expensive. Sprout Social pricing is more than twice that of the two competitors we looked at in this article. However, if you’re a larger brand looking to make the most of social media, then Sprout Social has valuable tools to help you capitalize on your audience.

Is there a free version of Sprout Social?

Sprout Social does not have a free version. Plans start at $199 per month.

How much is Sprout a month?

Sprout Social pricing ranges from $199 to $399 a month if you pay annually and $249 to $499 if you’re paying monthly.

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Kristy Snyder is a freelance writer and editor with 12 years of experience, currently contributing to the Forbes Advisor Small Business vertical. She uses her experience managing her own successful small business to write articles about software, small business tools, loans, credit cards and online banking. Kristy's work also appears in Newsweek and Fortune, focusing on personal finance.

• Talent in Shanghai

Registration for Shanghai Magnolia Talent Plan Pujiang Project begins

[Photo/Wechat account of sh-italent]

In order to support and encourage outstanding overseas returnees to work and start businesses in Shanghai, the Shanghai Municipal Talent Work Bureau has initiated the 2024 Shanghai Magnolia Talent Plan Pujiang Project. The project application process is as follows:

01 Who can apply?

Overseas returnees and teams who come to Shanghai to work or start a business.

Category A: Research and Development

Requirements: Applicants should be engaged in natural science and technology research at universities, scientific research institutes (including new-type research and development institutions) or other organizations in Shanghai.

Duration: From Dec 1, 2024 to Nov 30, 2026.

Funding: Fixed amount of 300,000 yuan ($41,845) per project.

Category B: Enterprise Innovation and Entrepreneurship

Requirements: Applicants should be engaged in scientific innovation research at enterprises in Shanghai or have founded a technology-based enterprise as an overseas returnee.

Funding: Fixed amount of 300,000 yuan per project.

Category C: Social Sciences

Requirements: Applicants should be engaged in humanities and social science innovation research at organizations in Shanghai or have founded a cultural and creative enterprise as an overseas returnee.

Funding: Fixed amount of 150,000 yuan for each project.

Category D: Special Urgently Needed

Requirements for Applicants: The applicant’s innovative research or enterprise founded by returning overseas personnel must align with the fields of a special urgent need for talent funding this year and be recommended by relevant institutions based on merit.

Funding: Fixed funding amount of 150,000 yuan (for social sciences) or 300,000 yuan per person (for natural sciences), 500,000 yuan per team.

02 Requirements

Project application institutions should be registered as incorporated or unincorporated organizations in Shanghai that can implement projects.

Research projects already supported by government funding cannot apply again.

All applicants and project participants must comply with ethical and research integrity management requirements, project leaders must ensure the authenticity of submitted materials, application institutions must verify their applicants' eligibility and the authenticity and completeness of application materials and confidential content should not be included.

Eligibility:

1. Applicants must be under 45 years old (born on or after Jan 1, 1979).

2. After selection, applicants must work full-time in Shanghai, with a minimum of nine months per year spent working in Shanghai.

3. For team projects, the team should consist of at least three members, all of whom must meet the application conditions and be collectively introduced by a Shanghai organization or start a business together as a team.

4. Overseas returnees working in Shanghai for innovation research must have entered the country after Jan 1, 2021; those coming for entrepreneurship must have entered after Jan 1, 2020.

5. Returnees and teams who have not yet entered the country but have reached a clear employment agreement with a Shanghai organization or have agreed to establish a business in a relevant startup park may also apply.

6. The continuous study or training period abroad and the time of entry for work and entrepreneurship will be verified through entry and exit records.

Special Urgently Needed Category Application Items for 2024:

Annual funding focuses on integrated circuits, biomedicines, artificial intelligence, electronic information, life and health, the automotive sector, high-end equipment, advanced materials and fashion consumer products.

03 How to apply?

Applicants should first undergo eligibility verification, the period of which extends from Aug 5 to Sept 8, 2024.

Applicants can log in through the "Shanghai International Talent Network" (http://www.sh-italent.com/) under "Talent Program One-Stop Application" → "Shanghai Magnolia Talent Program" → Pujiang Project, or directly via http://shrctcpt.sh-italent.cn/. Use the applicant account to log in (created by the institution account; no need to click "Register Now"). After submitting the "Project Application," the application institution will conduct the "Project Application Review."

The online application period starts on Aug 12, 2024. The deadline (including the online review and submission by the application institution) is Sept 15, 2024.

04 How to evaluate?

Two-round evaluation process.

05 Where to consult?

Eligibility verification and C, D category applications consultations: Shanghai Municipal Talent Bureau: 021-3250-8103 / 021-3250-8038 / [email protected]

A, B category application consultations: Science and Technology Commission of Shanghai Municipality: 021-12345 / 8008205114 (landline) / 4008205114 (mobile)

Source: Wechat Account of sh-italent