Now that you’ve had a chance to take a look at Strategyzer’s Value Proposition Canvas, it’s time to dive into the main meal: The. Business. Model.
Here’s the Business Model Canvas. You’ll notice that all that work you did on the Value Proposition Canvas can plug into the “value proposition” section of the business model.
Here’s an overview of how to use this handy tool:
“Okay, this is great,” you may be thinking, “but how does a social enterprise’s business model differ from that of a non-mission based business?”
Strategyzer created the the Mission Model Canvas for that. Unfortunately, the Mission Model Canvas makes it look like you can just replace the “revenue streams” section with the “mission achievement” section. A social enterprise – and nowadays even non-profits – really shouldn’t do that. You need to come up with a way to both accomplish your mission and earn revenue streams, because the likelihood of your organization surviving on mission alone is kind of slim.
So here’s my recommendation: if you have a social enterprise, use the normal business model, but add social and environmental costs to the “costs” section and add social and environmental benefits to the “revenue” section. By doing this, you’ll start to account for the true costs and benefits of what you create.
What if you have a non-profit, you ask? Do you need a business model?