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Types of Businesses to Start

How To Be A Social Entrepreneur

If you’re ready to launch a business, but want to make a real social impact too, the social entrepreneurship model might be right for you. Here’s how to get started.

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A social enterprise is an organisation that serves a social and/or environmental purpose, generates income from business activities and reinvests its profits back into driving its mission.

Examples include African Schools of Excellence (provide world-class schools to poor communities at a low cost); Hands of Honour (upcycles waste and provide employment for former drug addicts and ex-convicts); and my own social enterprise, Nkazimulo Applied Sciences (helps young people become scientists regardless of their background).

Related: Richard Branson on Social Entrepreneurship

Some people say most of the profits should be reinvested into the mission, but others say a worker is worth their wages. 

Doing business differently

Social entrepreneurship is a different way of doing business. Previously, few people cared about whether a company did good or not.

Related: Eva Longoria And Social Entrepreneurship

Today, food outlets that serve healthy eating options are growing their market share because consumers now care about their health.

Farming responsibly opens the growing market that cares about the environment. More people care about the quality of education South African children have access to and support the efforts in this area. This is where social entrepreneurs can make a real, sustainable difference.

The entity can take any legal form, from a non-profit organisation, to a private company, a trust, or adopt a hybrid structure. Each has its pros and cons. Social enterprises take attributes from commercial entities.

They generate income from business activities. They also take attributes from non-profit organisations and government departments by tackling challenges previously addressed by these organisations, such as poverty, inequality, poor education and unemployment.

Related: Pathways To Funding For Social Entrepreneurs Do Exist

They run more efficiently, and are more accountable and transparent than public sector organisations. They are less dependent on external funding than non-profit organisations and charities. Worldwide, there is not enough grant funding for all the non-profit organisations looking for it.

Sustainable social models

An important element of successful social entrepreneurship is social impact monitoring and evaluation. The enterprise must constantly improve on delivering its mission and communicating the results of the impact to all its stakeholders.

Measuring impact may seem difficult. How can you tell a child became a doctor because they had access to lab facilities they previously had no access to? Maybe they were influenced by another factor.

There are several tools to help a social enterprise focus its activities on outputs that will lead to the intended outcome which can then be measured.

These outputs become inputs that form a series of outcomes that, together, achieve the intended overall impact and become indicators the enterprise measures.

Instead of measuring the number of learners who become doctors, the measure is the number of learners with access to lab facilities where none existed before.

Related: How to Crack Social Entrepreneurship

This is better than looking at the number of lab facilities provided, which is an input.

See the bigger picture, collaborate and achieve collective impact

These tools are called Logic Models. Demonstration of impact communicates why an enterprise should be supported by stakeholders.

Related: Busi Skenjana’s Two Core Rules Of Entrepreneurship

The use of Logic Models envisions the bigger picture and identifies other players to collaborate with to achieve collective impact.

Thompson Reuters Foundation reported that South Africa comes third in Africa after Egypt and Nigeria as the best place to be a social entrepreneur.

This is very encouraging and is much needed in not only boosting the economy but addressing social and environmental issues.

IN ACTION: Using a logic model to prove your impact

logic-model

A logic model is a visual representation of how day to day activities of an organisation relate to their overall mission or long-term goal. The model is key in deciding what to measure for impact evaluation.

It has six components:

  1. The current situation: The problem being solved.
  2. Inputs: Resources used to address the problem.
  3. Outputs: Activities and services delivered by the enterprise.
  4. What outcomes will come about because of the inputs?
  5. External factors, or circumstances in the environment that influence the problem but which the enterprise has no control over.
  6. Assumptions that are conditions needed for the success of the programme.

logic-model

Getting started

Involve all stakeholders in drawing up a logic model. The different perspectives help draw a complete picture. Impact measurement indicators are then based on these inputs and outcomes.

Adding value

Logic models link inputs, outputs and outcomes and ensure that the correct indicators are monitored and measured as an enterprise achieves its mission.


Related: The Drive to Make a Difference

Bathabile Mpofu is a social entrepreneur and the MD of Nkazimulo Applied Sciences, an organisation that aims to help young people become scientists. Visit www.nkazisciences.co.za

Types of Businesses to Start

What You Need To Know When Starting A Tech Business

For the tech entrepreneur, the majority of your intellectual capital will reside in your software, code, databases, websites or mobile applications.

Damian Michael

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Protecting and managing your intellectual capital starts with finding, identifying and classifying your most important human and intellectual assets. Once you know what you are looking for, you can then determine whether you have the rights you need over those assets. If you don’t, you can then go about securing those rights and then select the best methods of protecting them.

Terminology

Intellectual capital, intellectual assets and intellectual property 

In the industrial and manufacturing industries, the conventional forms of capital needed to start and grow a business were real estate, factories, plant and equipment. But in today’s knowledge economy, these physical assets have largely been replaced by ideas, knowledge and creativity as the new drivers of value.

Related: High-Tech Marketing Sample Business Plan

This new type of information and knowledge-based capital is known as intellectual capital. Your intellectual capital is basically all the knowledge, skills, capabilities and work product that you and your team have to offer, together with the relationships, reputation and brand equity that your business is able to attract and maintain in the marketplace.

Intellectual capital is made up of the following:

  • Your ideas, insights, knowledge and creativity (intellectual assets)
  • The talent, skills and capabilities of your team (human capital)
  • Your contractual relationships and connections with investors, customers and other stakeholders (relationship assets)
  • Your unique brand and the reputation and goodwill you have built around it (brand assets)

In the same way as we as individuals have a whole lot of information and knowledge, some useful, some useless and trivial; your business’s intellectual capital can also be categorised according to its uniqueness, usefulness or value.

Where your intellectual capital displays these additional qualities, it may qualify for statutory legal protection. These special assets, commonly referred to as intellectual property, are bestowed with rights and protections which give the owner a period of time (limited) to commercialise or exploit them without any undue or unfair interference from others. The trade-off is that after that period of time expires, the asset becomes part of the public domain for anyone and everyone to use.

Discovering what intellectual capital you have and need

For the tech entrepreneur, the majority of your intellectual capital will reside in your software, code, databases, websites or mobile applications. Copyright law without the need to register rights or comply with any further formalities automatically protects most of these assets. However, it is still necessary to identify and categorise those assets because the ownership rights and the ways to protect them may differ between the different types of asset.

At the same time, there may also be a wealth of other intellectual assets tucked away in your filing cabinets and hard drives, waiting to be discovered. These may include valuable trade secrets, know-how, methodologies, customer learning, and market research.

Related: Tech Implementations In Africa – Staying Ahead Of The Game

Once you have linked the value drivers and competitive advantages in your business with the assets that produce them, list those assets and classify them according to the structure that they take.  Are they people-based or embedded in technology or documentation. Do any of them qualify for statutory protection?

The outcome should be an inventory of all your intellectual capital, classified according to the different levels of protection available as well as their importance to your business.  You probably don’t have the time, energy or budget to protect everything, so taking the time to do this exercise will ensure that you separate the wheat from the chaff which will save you in the long run.

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Types of Businesses to Start

10 Cheap Businesses You Can Start In South Africa That Offer Uniquely Local Relevance

There are a few businesses that are more likely to thrive in South Africa than others. Here’s a list of 10 that meet the needs of the country’s people.

Pritesh Ruthun

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Brand South Africa believes that despite a slowing global economy, South Africa remains one of the most promising emerging markets in the world. It is also Africa’s most sophisticated and diverse economy, according to the organisation.

This diverse composition of the South African market and consumers discerning tastes, which vary from region to region and province, represents a good opportunity for the entrepreneurially-minded to capitalise on.

So, why not start a business that caters to the particular needs of South African clientele? Here are a few business ideas that can be started with relatively low capital input:

  1. Bunny Chow and Kota Food Retail Business
  2. Uniquely South African Clothing Business
  3. Ready-to-Eat Baby Food Business
  4. Mathematics Upskilling Business
  5. Low Sugar Refreshment Business
  6. Aerial Drone Photography Business
  7. Small Batch Beer Brewing Business
  8. Niche Project management Business
  9. Tax Consulting Specialist for Start-Up Businesses
  10. Mobile Hair and Beauty Specialist Business
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Types of Businesses to Start

A Step-By-Step Guide To Selling Consulting Services

Do people often ask for your professional advice? It’s time to start charging for your consulting sessions.

Alex Berman

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Ever since I launched my YouTube channel where I talk about different strategies regarding B2B selling and inbound marketing, I’ve gotten a lot of requests from my audience to hop on a call with them and help them out.

This is how I got started offering consulting services to different companies and entrepreneurs. Based on what I’ve learned, here’s how to structure these consulting calls so you can start selling them on your own.

1. Selling

I usually use a pretty simple email whenever I’m asked a detailed question that requires a decent amount of my time.

Email correspondence

This email includes the price for the consulting call, which can vary, but generally starts at $300. Usually, that email is enough to get viewers to buy in.

Related: 5 Secrets Of Communicating Effectively With Your Customers

You want to price your consulting services in a way that it makes you want to work for that amount (even if you’re not in the mood). By charging a certain amount for the consulting call, you make sure that you’re adding value and the other person is also taking your notes more seriously.

2. Mindset

For those who are just getting into coaching and consulting, the best way to start is to assume that the person on the other end is going to get good information out of your session.

People usually join a coaching session either because they have a burning problem or they are so close to a solution that only few words are enough to solve it for them.

In some cases, people paying for a consulting session already have an idea or solution to a specific problem, but they want to have your ideas or expertise.

It is important to remember that the person won’t reach out to you for coaching if she didn’t like something about what you’re doing.

3. Scheduling

To get this meeting on the calendar, I use a tool called Calendly. There are a bunch of alternatives out there, but Calendly is a pretty popular solution.

Related: What Really Drives Sales Growth And Repeat Business?

The tool is free, but I use a version that charges about $10-$15 a month and plugs directly into my Google calendar. There are a lot of similar tools out there that you can choose from if you don’t like Calendly.

4. Payment

I recently discovered and started using Google Wallet. It is a free tool from Google and its pretty similar to Venmo. It allows you to input your credit card info and the amount billed is directly transferred to your account on the same day.

Related: How To Seal The Deal By Understanding The 3 Phases Of The Customer Buying Cycle

I’ve previously also used Venmo and Paypal, and as a company (Experiment 27) we used Chargebee for a while. With Chargebee, we had a problem where it would mess up our revenue numbers and our churn rate.

A lot of these coaching sessions are one- or two-time purchases for a very small amount of money compared to our main service offerings, so it would mess up our purchase rates.

Setting up a Google Wallet account is pretty simple and it also provides invoices. The last coaching session I did, an invoice was paid within two hours.

5. Process

It is important to know whether the person purchasing a coaching session is getting value out of it.

Related: Why Customers Don’t Respond To Disruption

I picked up this idea from someone with whom I used to do a bunch of coaching sessions who runs his coaching session using Google docs.

He opens up a blank Google doc at the start of a coaching session and adds notes there. Using that model, my clients and I go over different goals and questions by writing them in a Google doc and I also assign homework.

Here’s an example of a document like that.

Sales Coaching

And because all of it was done in a Google doc, everyone has easy access to it. At the end of each coaching session, I think it’s necessary to have a homework assignment that would set up the attendees on something to work for the next week.

Bonus: Should your consulting landing page have short or long copy?

There’s been a long debate among the copywriting community about whether short copy or long copy is the best. Some say that you need long landing pages outlining data point after data point in order to make someone take action and buy your services.

But, there’s another group of copywriters who believe that the short copy is more effective because of its to-the-point approach and easier click and buy operation. There are always two sides to all advice, but for us, short copy didn’t work.

Our coaching funnel normally consists of our clients watching a YouTube video and then booking a consulting call directly.

Related: 3 Strategies For Closing Sales Without Picking Up The Phone

The clients would usually find the consulting page and would be welcomed by the headline, “Want me to help you double, triple or maybe even quadruple your revenue for the next quarter?”

Our landing page was converting about two clients a week who wanted consulting services on how to improve their agency business.Being a fan of testing, I thought we could do better.

My favorite coaching page of all time is one that is literally a picture of the coach’s face along with a description that says “Did you know Neville takes on four different private consulting clients?” along with one paragraph of copy and a “buy now” button – that’s it.

So, we wrote a version of our consulting page based on Neville’s, but we saw our conversions drop from where they were before down to almost zero. We had just one conversion for the entire month that we had this landing page.

Since this approach clearly wasn’t working for us, we changed back to our previous landing page. We kept a few items from the other approach.

For example, we changed the pricing section and began offering consulting packages. Having packages on the copy page increased the revenue dramatically.

Related: What Really Drives Sales Growth And Repeat Business?

The other thing that this experiment taught us is that we needed a more intense email drip to sell people on coaching. We rewrote our email sequence, which is now a five-day drip in which we basically hard sell people on coaching as they sign up for any of our lead magnets on our YouTube channel.

Even though the short copy approach wasn’t right for us, we did gain some valuable insights from the experiment.

This article was originally posted here on Entrepreneur.com.

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