At first blush, venture capital sounds appealing. In theory, they can provide us with that hunk of cash we need to launch our great idea, and then when we succeed they can make a decent return while we make a big difference in the world. We just need a business plan to show them how profitable we’ll be and then they’ll invest in us, right?
Continue reading “Financing Fantasy #2: Venture Capital”
My previous blog identified the five competitive forces developed by Harvard professor Michael Porter, which should be addressed in every business plan. This blog profiles each of these forces. Continue reading “Porter’s Five Competitive Forces (Part 2)”
Everybody wants to be on the side of the angels. And while angel investors aren’t divine, many social enterprises labor under the mistaken assumption that they represent a ready source of capital. Unfortunately, very few social enterprises secure financing this way, and frankly, even if you could get such funds, in most cases they’re not all that desirable anyway. Here’s why:
Every business has competitors for its customers, who, after all, get to choose. Most business plans only focus on existing competitors. While that’s necessary, it’s not sufficient. You also need to look at the underlying structure of your industry, and assess the extended rivalry that exists within that structure. One way to do that is to apply the work of Michael Porter, which looks at the five competitive forces that (should) shape strategy.
Continue reading “Porter’s Five Competitive Forces (Part I)”
This blog was written by guest writer Jan Cohen.
Today we venture up the Risk Chart to explore New Markets for Existing Services or Products. The focus is on researching who else could use, and pay for, what you already provide. Continue reading “Finding Good Venture Ideas (Part 3)”
This blog was written by guest writer Jan Cohen.
As we discussed last time, when most nonprofit staff and Boards think about earned income, they typically think about doing “something new”.
This Risk Chart helps organizations to clearly see how risk increases as they go from “things and people they know” to those they have no experience with.
Not everyone who starts a small business is an entrepreneur, nor should they be. Figuring out whether you’re an innovator, an entrepreneur or a manager can save you headaches down the road. Continue reading “Are you an Innovator, an Entrepreneur, or a Manager?”
This blog was written by guest writer Jan Cohen.
When most nonprofit staff and Boards think about earned income, they typically think about doing “something new”. The Risk Chart helps organizations to clearly see how risk increases as they go from “things and people they know” to those they have no experience with.
It’s very rare for social enterprises to merge. And when they do, it’s usually because one of them is failing. But let’s consider a situation where impact and sustainability might be enhanced if two successful social enterprises were to merge. Should they? Continue reading “Are Mergers Good for Social Enterprises?”
Last week’s blog described the information you need to develop a pricing strategy. Today we’ll talk about several kinds of pricing strategies that are commonly utilized. Continue reading “Pricing Strategies (Part 2)”
