4 Tips for a Profitable Social Business, from an Expert
It might be almost overwhelming– the initial idea, the launch, the amount of information. However, in order to sustain the activities of a social business long-term, an efficient and profitable plan is a must. Aiding that, the following tips might be helpful for those who are starting, or struggling along the way.
Simona Simulyte, a co-founder of ChangeMakers’ON (C’MON) is an advisor for social business development. Today she generously shares her knowledge in four snackable tips/useful reminders for each social entrepreneur.
1. TEAM OF INDIVIDUALS. Geniuses exist, as well as one-man orchestras. However, such professionals are nano-minorities. Focus your human resources to consist of individual competencies rather than all-around experts; precise division of work and tasks is the key to seamless process and progress.
2. TALK TO YOUR CUSTOMER. From the very beginning, converse with your customer and do empathy interviews. Repeat this activity in every stage of business development. The earlier you start engaging with real users (especially in the product development stage), the faster you get to successful sales. Customer sympathy facilitates change in the right direction.
3. BE CUSTOMER-CENTRIC RATHER THAN PRODUCT-CENTRIC. The most important rule: find who shall need, and who shall buy your product- create a product the market needs. "It is a common mistake to think that first one must create a final product, and only then present it to the potential users," claims Simona. "Prior to constructing a product, we must first understand whether there's a market for it."
4. BE TRADITIONAL, NUMBERS-WISE. "My very honest suggestion for every social business is to count and take care of business finances like a traditional business– budget like any simple business would," advises the expert. Step two, adapt these numbers according to personal or brand values, and find a way to return a part of your profit to the public community. As in a usual business, this would be considered an investment into product development and business growth.