The world is changing. People are working and struggling hard for their lives. In such difficult times, it is a very tangible thing that if someone wants to start a social business. If you don’t know about what social business is or hear this term for the first time, let us clarify.
If we talk about a social business, it is solving the problems of society or people with a marketing approach in simple words. Through a social business, you can profit, but there is a balance between profit, durability, and social impact.
Though it is honourable to start a business that may bring a positive social change, it requires hard work. You have to struggle hard with persistence and focus on your goal in such a business.
For the entrepreneurs who want to start a social business, here are some tips that are given by a well-known business consultant Anatoly Machulsky.
- Find Your Focus:
What is your objective? What do you want to achieve? First, find your companies goal and then work further on it? Your goal must resonate with others, but the more important is that it resonates with you.
It is not difficult to keep focused on your goal. You have to be determined, hard-working, and passionate. Get inspiration from other social entrepreneurs. Just keep the focus on this sentence, that “how to make it better”, and you will see the path of success open for you.
- Start Small, but Think Big:
Here we can take an example of the company Ruby Cup. This company has made silicon menstrual cups that are environment-friendly, cost-effective, and convenient to use. It looks like that it is enough for social work, but Ruby Cup does more than this.
For every purchase, Ruby cup donates one cup to poor women who cannot afford these cups. Moreover, the company also supports several educational programs.
Being focused doesn’t mean that you need to think of one goal only. You can also work to achieve multiple goals at the same time. But for achieving various goals, you have to work harder. So it is recommended that you set one goal for yourself at the start of the business and then gradually increase them.
- Do Your Research:
For solving social problems effectively, you should do proper research before launching a project. The more effective your research is, the more effective solutions will you get. Try to understand your target audience, their needs, and also what they can afford.
You can also find problems by analyzing your own life. Once you find a problem, do the best research to find all possible solutions. Then you can globalize the solution which you find more compelling.
- Business Plan:
For the business to be successful, a plan is needed. Without proper planning, the business will not work longer and eventually sink. “A strong business plan contributes much to the business’s success,” says Anatoly Machulsky, a young business consultant.
It is good to be passionate about your objectives, but being organized and business- savvy is also important to earn the customer’s trust. Think creatively and make a business plan which contains all the important turning points of your business.
- Profit or Non-profit:
Social businesses are of two types based on what they do with their profit. Some organizations retain their profit, and some use the profit to extend their business or organization. Both types of organizations have several pros and cons.
Profit organizations are those which retain their profit. These cannot offer tax deductions to their donors and are allowed to receive a limited amount of grants. They can generate as much revenue as they want, and they have to pay taxes for that.
On the other hand, non-profit organizations can get free grants and provide tax deductions to their donors. Moreover, they are not liable to pay taxes to the government.
A well-managed social business can positively impact the world and also inspire change in society. Anatoly Machulsky has advised these tips to many companies, and now they are emerging on the top and earning profits. Stay determined and passionate about your goal. And the most important, be smart.