Social Business Models - 7 error to avoid!
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In the social entrepreneurship field as in the classical economy field, business modeling is likely to bring some tricky errors. Here are someones to avoid: 1. Confusing business model and business plan 2. Not clearly defining the business model 3. Confusing beneficiary and customer 4. Willing to solve everything at the same time 5. Believing that projected impact guarantees the market 6. Underestimating the communication 7. Underestimating the competition
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Social Business Models - 7 error to avoid!
- 1. Social Business Models 7 errors to avoid!
- 2. Error number 1 Confusing 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.
- 3. Error number 2 Not 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
- 4. Error number 3 Confusing 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
- 5. Error number 4 Willing 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!
- 6. Error number 5 Believing 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
- 7. Error number 6 Underestimating 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.
- 8. Error number 7 Underestimating 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!
- 9. 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.