SOCIAL BUSINESS MODEL CANVAS

4A. CUSTOMER RELATIONSHIPS FOR TARGET MARKET THAT IS NOT THE BENEFICIARIES

4A: This segment describes how you "get "customers into your sales channel, "keep "them as customers and "grow "additional revenue from them over time. · "Get" Customers Strategy: to create "awareness, interest, consideration, and purchase" - Tactics: Earned ( free ) media ( blogs/website, brochures, reviews) Paid media ( ads, promotion, tradeshows, telemarketing, direct mail, events) · " Keep " Customers - Strategy: Interact, retain - Tactics: Loyalty programs, product updates, customer surveys customer Check-in calls. · " Grow" Customers: What revenue can you get over the lifetime of the relationship you have with the customer. - Strategy: New revenue, referrals - Tactics: Upsell such as " spend $ 25 more and get free shipping", promotional mailers of offers, coupons, and samples

4B. CUSTOMER RELATIONSHIPS FOR TARGET MARKET WHO ARE THE BENEFICIARIES

4B: People with low and uncertain income streams in developing countries do not have time nor money to waste on market doubts. Thus, social ventures and startups, seeking for a position with the lower income brackets in emerging markets, need to design new business models that convey trust by allowing customers to easily verify a product's value through multiple channels. A well formulated pitch or positivity will not be enough. Therefore, by providing verification, customers will more likely get what they pay for, then you're effectively creating credibility and trust. Providing multiple sources of verification implies that: The point of sale is personal, allowing for two-way interaction in communication Reputation (added trust) is backing the transaction, like a (personal) brand The customer has access to, and is informed through independent and ubiquitous -visual/audio- information resource

1A SOCIAL VALUE PROPOSITION

A Social Value Proposition creates a value for a Customer Segment through a distinct mix of elements catering tothat segment's needs. Values may be quantitative (competitive price, speed of service) or qualitative (new design,convenience). It is also a statement, which articulates why the target beneficiary will consume your product or service offering over other alternatives in the market. Consider the specificresults or tangible difference that your idea will make to the community or people you are trying to help.

2B. BENEFICIARIES

Beneficiaries of social businesses are those that will benefit from your social mission. Typically, they are sociallyexcluded such as the poor, unemployed people, people with disabilities, the elderly, children and the youth. Some business models are designed where beneficiaries and customers are the same.

9A. COST STRUCTURE

Developing a budget of the most essential expenses and to determine how to convert your fixed costs into variable costs is key. The financial goal is to become self-sufficient where your project will exceed breakeven from the income generated by the project to pay all expenses with a profit left over. How will you use " Bootstrapping " to minimize your costs.

CREATING Y OUR SOCIAL VALUE PROPOSITION

FOR - List target customers or beneficiaries. Group them and ultimately define THEcustomer or beneficiary. Asserts the value of the offering: WHO - Define the need or opportunity. What is critical issue? THE - Name of your product, service or concept. Place the product, service, or concept into a generally understood category. THAT - Quantify the benefits of the product, service, or concept. Identify the single most compelling benefit. Positions the value: UNLIKE - List the competitors and competitive alternatives. OUR - Differentiate the product, service, or concept. Set it apart from the competition.

7B.NON PROFITS (NGO)

In this building block, list the most important local non-profit organization that has a direct relationship withthe indigenous population can be leveraged to further your social mission. This is the organization which you will enter into a Memo of Understanding ( similar to the Project Concern International MOU with the Thresher Project that will be discussed in class .

5.KEY ACTIVITIES

Refer to Final Written and Visual Guidelines.

9B. SOCIAL OPERATING COSTS

Social Cost is any cost incurred by a social business, above and beyond ordinary business costs, in order to fulfill itsmission. If all social costs are subtracted, the resulting financial should reflect that true cost of the enterprise. Social cost burden falls typically on the nonprofit partner. Therefore, you also need to state 1. one philanthropic entity (name specific Foundation ) that will donate funds to the nonprofit to fund the social costs. 2. the cost categories not actual numbers the funds will be used to pay for such as special training, childcare, language training, etc.

1B. SOCIAL IMPACT

Social Impact is the effects on various people or community that happen as a result of your idea. The 'impact' ofyour business can be positive or negative, and can be intended or unintended. It can also have an immediate and direct impact on certain people, but it can also have a more far-reaching effect on people who are not directlyengaging with these actions. They might not even know they are being affected at all, but the 'impact' of the actionmight be very significant to them. It may also be negative as well as positive. Use the Social Impact Assessment Framework posted on BB and complete the chart for your project as per Figure 4.6 Sanergy's BOP IAF

3 CHANNEL

The Channels building block describes how your business will reach your customer segments and/or yourbeneficiaries to deliver a social value proposition. The last-mile distribution is especially significant, such as " Self-Help Groups" ( SHG) that have been shown to be very effective. Does this possibility exist in your area where potential customers reside? Retail distribution, or using a current distributor such as Nayla Dairy distribution model for D'Lights http://www.youtube.com/watch?v=qBErfaTURQc may be an alternative. This is very creative building block where it is important for your project to ascertain the most " effective " and " efficient " method of distribution.

6A. KEY RESOURCES

The Key Resources are what you need at the " idea stage " and " prototype stage".

8. REVENUE MODEL AND INVESTOR

The Revenue Streams building block represents the cash a company generates from each Customer Segment. If customers are the heart of a business model, Revenue Streams are its arteries. What value is each Customer Segment truly willing to pay? How can I create multiple revenue streams to help minimize any financial risk? A social business model can involve several different types of Revenue Streams for example. • Transaction revenues resulting from one-time customer payments • Recurring revenues resulting from ongoing payments to either deliver a Social Value Proposition to customers or provide post-purchase customer support. Social Return on Investment (SROI) measures and values the key changes, or outcomes, created by your social business.

WHAT IS A SOCIAL BUSINESS MODEL?

The Social Business Model is vital to showcase how your social business intends to produce social benefits and whatprocesses it will follow in order to demonstrate potential impact, scale, and efficiency. It is particularly useful to helpevaluate an initial idea to evolve into a viable opportunity eventually resulting in launching the social business.

BUILDING BLOCKS IN THE SOCIAL BUISNESS MODEL

The following basic building blocks in the Social Business Model show the logic of how your social business intends to solve a social problem. These components form the 'engine' of your organization. The Social Business Model is a useful framework for understanding and communicating your idea.

2A. CUSTOMER SEGMENTS

This building block defines the different groups of people or organizations a business aims to reach and serve.Customers comprise the heart of any business model. Without (profitable) customers, no business can survive forlong. In order to better satisfy customers, a business may group them into distinct segments with common needs,common behaviors, or other attributes. A business model may define one or several large or small Customer Segments. An organization must make a conscious decision about which segments to serve and which segments to ignore. Once this decision is made, a business model can be carefully designed around a strong understandingof specific customer needs. Customer groups represent separate segments if: • Their needs require and justify a distinct offer • They are reached through different Channels • They require different types of relationships • They have substantially different profitability points • They are willing to pay for different aspects of the offer

4. CUSTOMER RELATIONSHIPS

This building block describes the types of relationships you want to establish and maintain with your CustomerSegments. The Customer Relationships you build will influence the overall customer experience.

7A KEY PARTNERS

This is a gap analysis to determine which partners will add the most value to both acquire the necessary knowledge and market intelligence at this initial stage of launching the venture. This stage requires different partners than other stages of the venture. Partnerships evolve over times as the needs of the venture also evolves. Therefore, if you determine the Key Resources and Key Activities you cannot on your own acquire and do, you will need to identify those partners to fill those gaps. Through secondary research, please identify what those gaps are and the partners to fill those gaps. Please refer to the " Partnership Ecosystem Framework" and the Oxfam example.

6B. EXISTING RESOURCES

What existing resources are available in underserved communities that can be leveraged? Existing resources to leverage but not control includes network infrastructure, such as existing distribution system, local self-help groups, social infrastructure, such as relationship capital and informal leadership; physical infrastructure, such as underused business assets.