Furnishing a guide that can also be used as part of a training curriculum by practitioners providing business education or technical support services to clients, implementing partners, other social entrepreneurs or students.
Requires continued external financing grants. Phrases like "operational sustainability," "financial viability" and "cost recovery" have become a standard part of the nomenclature. Covers direct costs; cost structure and growth subsidized; revenue covers daily operations until breakeven.
Managing the Double Bottom Line A Business Planning Reference Guide for Social Enterprises This manual is intended to equip social entrepreneurs with a business planning tool for their market-led social enterprises and help them improve their social enterprise program performance by: Nonetheless, as we have witnessed in the microfinance discipline, tools borrowed and adapted from the banking sector can help practitioners "do better at doing good.
Indeed, more and more organizations and donors are viewing interventions through a business lens--with respect to performance-based objectives, results-oriented outputs, and viability--thus leading the way for mainstream change.
Relies on subsidies for financial support to sustain operations. Cost of capital, partial subsidies for loans, and capital expenditures.
Business terminology, corporate case studies, and the single bottom-line focus often act as a smoke screen, barring nonprofit professionals from utilizing the important resources available in the private sector. At the same time, we recognize that standard business tools are not necessarily distributed through normal nonprofit channels; nor are they translated for use in the nonprofit context.
This entails endless strategic reflection and analysis on the part of social enterprise managers and stakeholders, with an understanding that each decision they make may have a ripple effect on other aspects of their business.
Tools and methods borrowed from the private sector are being adapted and applied to development programs as a means to better serve underprivileged and disenfranchised populations. Organization is dependent on grants and donations for survival; may self-fund isolated services or activities.
There is now considerable agreement among agencies of the importance of operating in a businesslike way. Operational breakeven; no surplus revenue, subsidies diminish; revenues cover all operating costs. Exercises are conceived to be multidimensional, pushing practitioners to "think outside the box.
Social enterprise programs are increasingly part of the nonprofit program agenda. Earned income covers operating expenses of enterprise at lower than market rates.
Revenues cover all operating and financial costs; retained earnings finance growth. Throughout, the manual aims to engender strategic thinking.
Viability through earned income Not viable. The inevitable consequence is that "business" is being integrated into nonprofit culture. Bridges deficit between earned income and expenses, capital investment and growth subsidy.
Nonprofit may change its legal status to that of a for-profit entity. Cost recovery is often seen as a side benefit rather than an expectation of the program. Earned income covers all operating and investment expenses at market rate. Nonprofit programming is changing.
Businesses need to reinvent themselves constantly to adapt to ever-changing environments.Managing the Double Bottom Line A Business Planning Reference Guide for Social Enterprises This manual is intended to equip social entrepreneurs with a business planning tool for their market-led social enterprises and help them improve their social enterprise program performance by.
The final result is the first two books in a series called Managing the Double Bottom Line: A Business Planning Reference Guide for Social Enterprises and A Business Plan Workbook for Social Enterprises.
The Reference Guide, the second edition of the first book, is intended to be a comprehensive “how to” resource for business planning/5(4).
a modified business planning tool that addresses the double bottom line--one Management Tool - A business plan tells stakeholders where you are going and how you plan to get there. It is important for the management team to Business Planning for Social Enterprises. “Managing the Double Bottom Line: A Business Planning Reference Guide for Social Enterprises”.
Kim is author of Managing the Double Bottom Line: A Business Planning Guide for Social Enterprises and contributing author of a forthcoming book, Generating and Sustaining Nonprofit Income. Acknowledgements I would like to thank and acknowledge the contributions of the following individuals who agreed.
Expansion on spectrum idea presented by Gregory Dees, Enterprising Nonprofits, Harvard Business Review, January-February Adapted from, Alter, Sutia Kim, Managing the Double Bottom Line: A Business Planning Resource Guide for Social Enterprises, Pact Publications, Washington, DC,Download