COMM101 Lecture Notes - Lecture 6: Social Business
7 Oct 2014
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Three component screening process: adds value to customer, customers are willing to pay for it, solves a problem, meets a need. Idea provides a competitive advantage that can be sustained: the idea is marketable and financially viable. Longer time to profitability or greater upfront investment needed = riskier venture. Developing the opportunity: business concept often changes from original, incorporate information and research, incorporate experience and customer feedback, once business concept finalized, move to business plan. Accessing resources: bootstrapping (doing more with less, make do with as few resources as possible, use other peoples" resources where possible, find/use free stuff, financial resources (debt vs. equity financing, debt = interest and control. Sources financial institutions, suppliers: equity = no interest, less control. Sources savings, love money, private investors, venture capitalists. Social entrepreneurs do not work for profit, they work to create social value. They seek innovative solutions to the world"s toughest problems (poverty, etc. : often in areas of education, health, environment.
