Five tips for Social Entrepreneurs
Having created four social enterprises, I am increasingly asked for guidance from existing and perspective social entrepreneurs. Here are five frequent questions and my thoughts based upon my experience and way of working.
How do I retain our core values as we grow?
Successful social enterprises are unique in that they are truly purpose driven, whilst also needing to generate revenue to survive and deliver impact. Striking the balance between these dual ambitions is complex, particularly as organisations grow.
I have learned how important it is to embed clear values into an organisation from the outset and to continually reinforce these with the team using a variety of techniques. When establishing Hubbub, we spent a lot of time and a high percentage of a very limited budget on agreeing the core values and the associated branding. This included creating the logo, agreeing the design palette and the imagery. This branding may seem an unnecessary distraction when starting an enterprise, but proved invaluable in helping to reinforce the purpose and approach of the organisation as it expanded.
Once the values are agreed it is crucial to keep them fresh and visible. This can be done by storytelling, building them into recruitment and appraisal processes, actively calling out when the values have been breached and most importantly for the leadership to constantly demonstrate them in their work.
2. Who should be responsible for raising income?
Most social enterprises are driven by the belief, commitment and energy of their founders or leaders. These are compelling attributes, providing authenticity and an emotional connection with the business idea - making it more likely to raise income from donors or secure support from companies. As organisations grow it becomes increasingly challenging to decide how much time to spend on income generation compared with running the organisation.
This period of growth is a point of jeopardy. There is a temptation for leaders to bring in marketers or fundraisers to generate the income, as this can be the most stressful and accountable part of the role. However, finding the right people to secure income is incredibly difficult. The market is competitive, salaries are high and whoever arrives won’t have the powerful narrative or the authenticity of the founder/leader story.
In my experience, it is easier to find people who have the skills and values to oversee the daily running of the organisation leaving the leader to be the main ‘bread-winner’. This requires the leader having the confidence to let go of day-to-day operations which some are reluctant to do, but keeping ownership of both is incredibly stressful. Far better to concentrate on the area where you can make the biggest impact.
3. How can I secure corporate partnerships?
The underlying success of my organisations has been built around collaboration often with large companies. This has delivered impact at scale, offered access to knowledge and provided financial security. I am frequently asked how a small organisation can secure this type of partnership. It is difficult but there are three things I would recommend:
Be inventive – A technique I have often used is to ask an MP to sponsor a room at the House of Commons or Portcullis House to promote an issue that is close to their heart. With this prestigious venue you can ask progressive companies to come and talk about their activities. This often entices other businesses along to listen, giving you a chance to build connections and outline your plans.
Be generous – I have often sought to provide specialist help or guidance to companies at no or low cost specifically to build trust and a relationship. This has frequently led to long-term partnerships.
Be topical – Keep an eye on the news to see if there are any ‘burning platform’ issues that companies are facing where you could offer a solution. It is in times of crisis that companies are most receptive to being approached with positive ideas.
4. How can I build our profile on a limited budget?
Building a strong profile and brand is essential but difficult when there are limited funds. I have heard numerous stories from Founders about the incredible things that their organisations are achieving but couldn’t see any indication of this work when searching on-line.
Authentic stories are gold dust and are the bread and butter of most social enterprises. Capturing these stories on video and posting regularly on relevant platforms is a fantastic and low-cost way to bring activities to life, and create a bank of content that can be used in pitches to funders.
Most social enterprises benefit from being nimble. They can be slightly cheeky and offer a different perspective to the mainstream narrative. These attributes can be used to be tactical and disruptive. This is an approach I have used numerous times, for example by creating a Litter Shop of Horrors; a shop which didn’t sell any products, but attractively displayed litter collected from the nearby forest and illustrated the long-term impact of dropping rubbish. The shop was cheap to set up and caught the attention of mainstream media.
Finding novel ways to get your message across using stories, stunts or displays can achieve cut-through. One way to build legitimacy is to commission public polling, which can provide an eye-catching, newsworthy headline. This is catnip to media and relatively inexpensive.
5. When is the best time to leave?
Creating a social enterprise is incredibly rewarding, but exhausting. It requires a distinctive set of skills to deal with the jeopardy of the start-up phase. As organisations grow, different skills are required to manage the team and take the organisation forward. It is a rare person who has the breadth of abilities to effectively manage these different phases and even rarer for somebody to feel personally fulfilled as requirements on their role change.
I have spoken to a several Founders who know fundamentally that they are finding their role less enjoyable as the organisation matures and realise that their core skills are being under-utilised. On the other hand, they have a deep connection with the organisation they have created and a sense of responsibility for those it supports and employs.
When and how to step aside is a real dilemma for most Founders. The advice I was given and eventually followed was when you instinctively know that the role is no longer fulfilling, it is time to go. Leaving successfully requires planning, and from my experience requires the following:
Ensure you leave the organisation with robust management. This requires succession planning for both the Board and the leadership team.
Make an extra effort to embed core values into the organisation. These should remain intact whoever leads.
Ensure the finances are as strong as possible. At Hubbub, I concentrated on securing and strengthening three corporate partnerships, knowing these would keep the organisation strong even if other income streams dropped.
Guide the Board on the appointment of the new leader, but don’t be part of the recruitment process.
Step away fully when you leave. The new leader will be different and won’t appreciate you staring over their shoulder once you have left.
I hope these views are useful for existing or potential Social Entrepreneurs. Please do share your thoughts with me at trewin@sizzle.org.uk.