Business Model Innovation - Social Enterprise Business Model Design
Project Example | Nonprofit Business Model Innovation
Social enterprise business model design
Context
My client had identified an opportunity to generate earned income through a social enterprise and had secured funding to pursue the opportunity. To move forward, it first needed to design the specifics of a viable business model.
Key Question
What is the best business model for our social enterprise idea?
Solution
Using industry research and analogous inspiration, I defined key elements of the business model within each dimension of the Business Model Canvas. Activities included:
- Industry research and expert interviews.
- Articulation of business model hypotheses.
- Rapid pressure testing of hypotheses and business model revision.
Three foundational questions framed pressure testing of hypotheses to validate the business model design:
- Are we solving an urgent customer problem? Answering this question involved ensuring that i) we accurately understood the "job" the customer is trying to get done, and ii) we believed that the "job-to-be-done" was a top priority from the customer's perspective.
- Does our solution solve the problem? The answer to this question arose from an analysis of our solution's ability to meet not only functional, but also social and emotional dimensions of the customer's job-to-be-done.
- Can the business make money? To answer this question, I modeled the unit economics of our solution—that is, what are the economics of selling a single product—and considered the feasibility of reaching the scale required to meet financial goals.
Results
My analysis answering these questions supported the viability of the business model design, allowing the client to move forward and to plan a strong go-to-market strategy.
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