7 Steps To Becoming A Social Entrepreneur
In this article, you will know about the seven steps on how to become a social entrepreneur. But before starting, let us first understand the meaning of social entrepreneurship.
Social entrepreneurship
As per Wikipedia, it defines social entrepreneurship as an approach by groups, individuals, start-ups, established entrepreneurs, and companies to fund, develop, and implement solutions to cultural, social, or environmental issues.
In simpler terms, social entrepreneurship is a business model aimed to make profits while tackling the social issue. It is also known by another name called the “Do-Gooder” business model.
For a long time, businesses have been associated with a cut-throat competition where profits come at the expense of hurting someone, whether it is through the environment, people, or communities. We all are quite aware of instances of rapid deforestation at the Amazon, hiring of low-wage laborers from underdeveloped countries to produce goods, and usage of unsustainable resources.
Well, social entrepreneurship means different to every person. For TOMS founder Blake Mycoskie it means donating profits to people in need with each good purchase. In contrast, for Defy Ventures founder Andrew Glazier, it means creating opportunities for incarcerated individuals by launching prison training programs.
Social entrepreneurship as a movement is aggressively moving towards the mainstream. With the rise of transparent business models and the rise of ethical brands, this idea has already soared to the skies while generating significant profits for all the people involved.
Here are seven steps of becoming a successful entrepreneur that would help you set clear goals and become a successful entrepreneur:
Select a social cause
Social entrepreneurship is a business based on some issue or a cause. So it does not require much thinking. It would help if you started by making a plan. Maybe you already have something you are passionate about or something that caught your fancy in the past few years. Whatever be the case, first find the social cause you would like to work upon.
Write down the mission statement
A mission statement is a document that explains your organization’s goals. It’s a proper storyline for your company. Why did you start it, what is the process behind the company’s operations, what are your goals, dreams, and aims from the company, the aspects you want your customers to know. A strong mission statement starts with defining the problem you want to solve, the demographic you’d like to target, and how to achieve it in the right way. Think of your core skills or talents that you have learned over the years, what you can offer to the people, and then define the set of your products and services. Answering these simple questions would allow you to come up with a quality mission statement.
Do the market research
Market research is the most significant part of starting a business venture. It would allow you to test your business plan. Even if you find your ideas unique, some other people might be doing the same. Hence, thorough market research is needed to find out about competitors and people you’d like to collaborate with. It would also help you solidify your target demographic, which you would compete with, the products and services you wish to offer.
Form a team
After doing the market research, the next step is to form a team. You ask people to join your team or hire members to help you create the team. One piece of advice that you can consider while adding team members is understanding what they can offer to your project. At this stage, you will not have many resources to go for a full-fledged team. Therefore, focus on hiring team members with varied skill-sets. It will help in increasing the efficiency of the team and achieve the best results for the firm.
Build a business model
Once you have finalized the business elements, you want to include, build a business model. A business model is the roadmap of your business that will talk about how it will function. It can answer questions like how will your business make money, who will be the beneficiaries, how much you will make out of the venture, and how you will pay your employees. Also, it will include essential questions regarding financing your social enterprise.
Identify funding sources
To create a business, you need to see the source for your funding. Hence, you need to figure out how you are willing to fund your operations. You can choose to self-finance or go for a traditional business loan. You can also seek funding from your friends, family, acquaintances, or investors.
Make the action plan
Don’t confuse an action plan with a business plan. An action plan is more like a to-do list in a detailed manner. If you seriously need to materialize your goals, you need to have an action plan. Once your plan is formulated, start working on your products and services. But before your products reach the market, you should focus on building a community that agrees with your views. This community will help you move forward and would act as your customer base.
In conclusion, the society of conscious consumers and social entrepreneurship ventures’ demand is increasing tenfold. So, if you want to be a social entrepreneur, you can’t pick a better time than the present one.
Author Bio
Author Bio: Abhyank Srinet is a passionate digital entrepreneur who holds a Masters in Management degree from ESCP Europe. He started his first company while he was still studying at ESCP, and managed to scale it up by 400% in just 2 years.
Being a B-School Alumni, he recognized the need for a one-stop solution for B-School to get in touch with schools and get their application queries resolved. This prompted him to create MiM-Essay, a one-of-a-kind portal with cutting edge profile evaluation and school selection algorithms, along with several avenues to stay informed about the latest B-School Updates