Social Business Models

7 errors to avoid!

Error number 1Confusing business model and business plan

• The business model is the logical construction of the organization, telling what it does, for whom it works, how it does, in what context ...

• To build the business plan, you must add the vision of the future, the strategy, the action plans, the projects, the investments and the financial plans in the short, medium and long term.

Error number 2Not clearly defining the business model

• An incomplete business model, ill-defined, without its validation by the stakeholders is like a lame construction.

• It is difficult to communicate and fail invariably in its persuasive tries

?

Error number 3Confusing beneficiary and customer

• The direct beneficiary receives the benefit, but he is not necessarily the one who pays ...

• The customer pays for the service, but he is not necessarily the one who receives

• The indirect beneficiary does not receive the benefit, but can make a huge a profit by proximity effect and impact chain

Error number 4Willing to solve everything at the same time

• The best way to fail is to want to tackle all social issues at the same time, under the pretext that a solution can be complementary with another one

• A helping slogan : prioritization!

Error number 5Believing that projected impact guarantees the market

Sometimes the degree of their need awareness, among the potential beneficiaries of the solution, is not sufficient for their interest to be awakened

Inertia and change resistance can ruin all forecasts for your business model, probably too optimistically dimensioned

Error number 6Underestimating the communication

• Croire qu’un site WEB suffit à être visible sur la toile, ou que la création d’une page Facebook suffira à vous attirer 10'000 fans sont des erreurs classiques, commises par bien des entrepreneurs, et peut-être plus particulièrement par des entrepreneurs sociaux.

Error number 7Underestimating the competition

• You will also face strong competition in accessing initial funding, as available funds in Foundation or public departments are not infinitely expandable.

• Your funding application is not the only one and the stack is huge!

If you want to know more…

This presentation, as well as factsheets, forms, posters and other tools for collaborative thinking can be viewed and freely downloaded on the website of the Social Business Models association.

www.socialbusinessmodels.ch