Before you start setting up your sustainable Social enterprise business, you need to answer whether it:
- Solves a problem.
- Who will this business benefit?
- How do you intend to make enough profit to build a thriving social enterprise?
You then need to start formulating the framework by writing a business plan that puts the mission at the centre of it. There are several ways you can set it up:
- A community interest company (CIC) – usually set up so that the profits are reinvested back into the mission and protected from being privately sold.
- Sole trader business – with profits put back into the company
- A limited company – as a Charity Incorporated Organisation (CIO)
- A mutual organisation – where customers have a share and is run for their sole benefit.
Source social enterprise funding
If your start-up business is a CIC, you access grants that are usually reserved for charities. You can also apply for a short-term business loan, private investment, or crowdfunding, to name but a few. Alternatively, if you need money quickly, then you can opt to apply for an Accelerator loan to help you with the initial set and operating costs.
Being able to demonstrate a commitment and dedication for your social enterprise as well demonstrating that your business is sustainable will help your application for an accelerator loan to be successful.
Social enterprise marketing
Promoting your business, is vital if you want people to hear about your product and service. An accelerator loan could help pay towards making your marketing plan strategy successful, particularly on social media platforms.
You can use the money from your accelerator loan to market to your target audience and build a relationship with them. Putting your social mission at the forefront of your appeal will help you to tune in to your target audience’s values. This will make them feel empowered and will help you spread the word for both your product and your shared mission.