From Idea to Impact: Social Enterprise Business Plan Checklist

Choosing to start a social enterprise can feel like a daunting task at first, one filled with uncertainty and risk. A thriving and successful social enterprise is built on passion – and a solid business plan.

We designed this Social Enterprise Business Plan Checklist (download coming soon!) for non-profit leaders like you.

The questions included in this checklist help social entrepreneurs reflect on and consider the many aspects of what launching a social enterprise involves and how to set it up for long-term success.

Executive summary

The Executive Summary is the “hook” that encourages readers to explore the full plan. It provides a high-level summary of the full plan, helping bring the business picture into focus. It should answer these questions:

• What is the purpose of the social enterprise?

• How will it positively impact outcomes in our community?

• What is the business and how will it generate revenue to support the non-profit?

• Who is the target customer and how will they be reached?

• Who will lead this social enterprise? What skills and expertise do they bring to the enterprise that will be of benefit?

• When will the enterprise break even and generate profit?

• What investment is required and from where?

Company description

The company description reflects on foundational information about social enterprise. It includes the following:

• What community need or problem are you addressing?

• Is the enterprise embedded in your non-profit or standalone?

• What makes your enterprise unique and credible?

• What is the mission and vision for the social enterprise?

• What values guide decision making?

Market research and analysis

Showcase the data, statistics, and facts that demonstrate why this social enterprise is feasible. That also includes answering the following questions:

• What is your product/service exactly? What need does it meet?

• Who exactly is your customer base and why will they buy?

• What share of the market do you need to be viable?

• How will the product / service be produced?

• How do you move interest to actual purchases?

• How do we get our product to market and distribute it to customers?

• Who are your competitors and what challenges do they face?

• What staff skills do similar businesses rely on and do we have access to those skills?

• What is happening in the industry that will positively or negatively impact our social enterprises’ success? How can we plan for these realities?

Organization and management

The organization and management section of your plan defines how the non-profit and the social enterprise are entwined and how they will operate in relation to each other. Be sure this section discusses:

• What is the governance/legal structure of the enterprise?

• Who manages the enterprise and what expertise do they bring?

• Have you consulted a lawyer on the best structure?

• What pitfalls need to be consider with each social enterprise model?

• How do we manage the risk of the social enterprise, while keeping the parent non-profit safe?

Marketing and sales strategy

Describe how the product/service will be brought to market and sold. This section addresses the four P’s of marketing: product, price, place, and promotion, and answers:

• Where will we find our ideal customers?

• What sets your product/service apart (unique selling proposition)?

• How will we position the product in the marketplace?

• What is the ideal pricing strategy for growth and sustainability?

• How will you distribute and promote effectively?

Operations and implementation

The operations and implementation plan address topics including product development, inventory control, facility requirements, safety and environmental factors, staffing, policies and procedures, and implementation plan. Be sure it answers the following questions:

• What facilities, staffing, technology, and systems are needed to operate?

• What is your launch and growth plan?

• What KPIs will you use to track success?

• Can this social enterprise be started small and scaled with demand?

• What policies and procedures are foundational for the social enterprise?

Impact and outcomes

It is essential to communicate the impact and outcomes to staff, customers, partners, and the community. Consider the following for this section of your business plan:

• What measurable outcomes are expected?

• How will customers’ lives be improved through your enterprise?

• What stories or data demonstrate your intended impact?

• How will we gather those stories or data to share with interest holders?

• Are the desired impact and outcomes woven into all aspects of the business model?

Financial plan and projections

The financial plan and projections drive the “Go-No Go” decision making. Include spreadsheet summaries and financial details that address the following questions:

• Are your sales and expense projections realistic? How can you back these with data?

• What is your breakeven point under different scenarios?

• How will cash flow be managed across the year?

• Will outside investment (funders, sponsors, donors, investors) be needed to launch and maintain the social enterprise until profitability is achieved?

• Has a qualified accountant reviewed projections?

Risk management

Risk management involves identifying, assessing, monitoring, and reporting on potential risks. Create scenarios for potential business risks and include details that answer: 

• What risks are the Board and the Board of Advisors willing to take?

• What can we learn about risk management from similar businesses?

• What risks could threaten the enterprise’s success?

• What contingency plans exist for each risk?

• At what point would you exit the enterprise if needed?

Use this section for a SOAR (Strengths, Opportunities, Aspirations, Results) analysis to reflect on the answers to these questions:

• What organizational STRENGTHS are you building on?

• What OPPORTUNITY gaps do you need to fill in the market or in the community?  Explore weaknesses and threats, looking for the related opportunity.

• What ASPIRATIONS exist for the business and who can help you realize that outcome?

Given the results desired, what risks have you not accounted for?

Need help to write your social enterprise business plan? Angie and HIP Strategic are here to help. Book a Get Curious! Discovery Session to learn how to harness our team’s expertise in your business planning today.