Social entrepreneurs are unique innovators.
Often they are movers and shakers trying to solve complex social challenges through business structures. So....they/we don't fit neatly in the box. It's not a game of maximizing profit. It's a game of maximizing solution. And well, that's just a foreign concept too many, many people.
"It can't be done." "That will never work." "Your profit margins are too slim." "Maximize profit then use that profit for good." "Business isn't charity." These are not uncommon statements heard by me and others routinely. There are many other statements of 'advice', but you get the picture.
We don't enter into projects lightly. They are not ill-conceived or pie-in-the-sky. The motivation is different. The goal is different. The approach is different. The 'why's' are different. But they involve well-laid plans -- sometimes complex with many moving parts, but they are well thought-out. Here's are the three "s's" for social enterprise we follow:
Solution. The project must maximize solution, solve the problem, address the challenge. Business structure is the vehicle but the goal is to solve a problem. If it doesn't adequately and substantially address an issue, it's not worth pursuing.
Solvency. The project must make financial sense. It can't rely on on-going subsidies or favorable 'what-if' scenarios. We have to plan well within the context of the local market and trends. We can't rely on someone's generosity or good fortune or unreasonably favorable conditions. The project has to make financial sense.
Sustainability. It's a mantra at CDP. We challenge nonprofits to be sustainable and our projects meet the same challenge. It has to make sense for the long-term -- both as a community solution and financially.
I love creative solutions to complex problems. I love a good challenge and calculated risk. Today as we embark on another week, here's to my fellow social entrepreneurs and a week worthy of project development and pursuit that can help our communities -- and those in them -- to thrive.
Mindy Muller, CFRE, President/CEO of CDP
