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How to Develop Executable Social Business Plan For ICSE Social Business Plan Competition 2013 Hiroyuki Ishizaki Brainstorm Worldwide, Inc. & ICSE

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Presentation on theme: "How to Develop Executable Social Business Plan For ICSE Social Business Plan Competition 2013 Hiroyuki Ishizaki Brainstorm Worldwide, Inc. & ICSE"— Presentation transcript:

1 How to Develop Executable Social Business Plan For ICSE Social Business Plan Competition 2013 Hiroyuki Ishizaki Brainstorm Worldwide, Inc. & ICSE July 31, 2013

2 For more information ICSE website: ICSE contact e-mail: Abe research group (Tokyo Tech) website:

3 2 Steve JobsSteve Wozniak Mark Zukerberg Masayoshi Son No name entrepreneurs Who is Entrepreneur?

4 3 What is a Social Entrepreneur? by Ashoka Foundation (excerpt) 1. Individuals with innovative solutions to societys most pressing social problems. 2. They solve the problem by changing the system, spreading the solution, and persuading entire societies to take new leaps, rather than leaving societal needs to the government or business sectors, 3. Social entrepreneurs often seem to be possessed by their ideas, committing their lives to changing the direction of their field. 4. Each social entrepreneur presents ideas that are user-friendly, understandable, ethical, and engage widespread support in order to maximize the number of local people that will stand up, seize their idea, and implement with it. [source:]

5 4 What is Reality in the entire World? [source:] Almost half the world over three billion people live on less than $2.50 a day. At least 80% of humanity lives on less than $10 a day.

6 5 Social Problems are All Around the World EducationHealthcareWater resourcesPeace keeping Social SecurityTransportation Information & communication Energy Economic growth Private sector developmentt Agriculture development Nature conservation Fishery Gender discrimination Urban/rural developmentt Environmental counteractions Disaster relief Racial discrimination Poverty Child abuse

7 6 Developing simple concept to a realistic business strategy takes time. Iterative Process of Refining A Business Concept Business Concept AssumptionVerification Market Research Organized Business Plan

8 7 Mission, Vision & Passion These three factors are a must have for a successful business venture It creates supporters of the business It unifies the team It energizes the entire company to achieve BHAG (Big Hairy Audacious Goal) Successful businesses do not put money as their top priority, even if it is for-profit company.

9 8 Mission Examples: Grameen Bank: To help the poor families to help themselves to overcome poverty. It is targeted to the poor, particularly poor women Habitat for Humanity works in partnership with God and people everywhere, from all walks of life, to develop communities with people in need by building and renovating houses so that there are decent houses in decent communities in which every person can experience God's love, and can live and grow into all that God intends.

10 9 Vision Examples: Habitat for Humanity: A world where everyone has a decent place to live Project Apollo: "I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth." Pres. Kennedy, May 25, 1961

11 10 Business Model For Profit? (targeting BOP consumers) Any creative way to pay for product/service? Who pays? How much? Disposable income of your target customers? Any similar business model? For Non-profit? (donation based income stream) Merit/appeal for donors? How do you collect donations? Competing NPOs for the money? Any similar business model?

12 11 Re-Imagine Business for BOP Needs Roundabout Water Solutions Since 2008 installed over 640 PlayPumps in South Africa, Malawi, Lesotho and Swaziland Costs $7,000 to construct

13 12 How it works

14 13 Re-Imagine Business for BOP Needs Q Drum The Q Drum is a durable, donut shaped plastic container which when full holds 50 litres of water. It enables the easy transportation of large quantities of water comparatively easily, and remain simple and cost effective. Cost: R510 to R450/Unit ($64 to $57)

15 14 How it works

16 15 Create a new ecosystem of education Teach for America

17 16 Give women revenue opportunities with mobile phone Grameen Bank Village Phones

18 17 Healthy dining to share meal with African Children Table for Two

19 18 Healthy dining to share meal with African Children Ashoka Foundation

20 19 What is Social Business? nothing but business Money-making Salary-generating Employment-creating Self-sustainable Growth-seeking volunteer donation ODA Self-sacrificing is NOT... Social business IS...

21 20 Difference from conventional business? Objective: To maximize shareholders' wealth. To improve social welfare as sustainable model Identify customer needs/issues Provide values/solutions Design revenue model Put affordable price Develop supply chain/distribution network Find long-lasting partners Make more money (= higher revenue & less cost) Keep growing and reinvesting Activities No difference in terms of activities. For-profit Busines Social Business

22 21 What is Business Plan? To maximize shareholders' wealth. To maximize shareholders' wealth. 1. Executive Summary 2. Mission/Vision 3. Business overview - description of products/services 4. Target market and customer needs - value proposition 5. Existing players, competition factors, Key Success Factors 6. Competitive advantage, differenciation factors, positioning 7. Business model - ecosystem for supply and revenue 8. Sales/marketing strategy, distribution methodology 9.Management team and organizational structure 10. Sales plan (3-5 years revenue and profit forecast) 11. Funding plan - initial funding amout and prospective investors Business plan is a description of operational ecosystem (what you do). managerial roadmap (where you are going). Standard structure of successful business plan

23 22 Business Strategies For Social Issues Critical Four Strategies in Dealing with BOP Markets 1. Know what your customers need/want. 2. Identify a business model that works for you. 3. Get Involved with Local Ecosystem of Vendors/Community. 4.Customize or Enable Access By Repackaging Products/Services. 5.Partner with Unconventional Stakeholders.

24 23 Tips For Effective Presentation 1. Summarize your message within time. 1 minute per slide. 2. Clarify social problem and solution. 3. Visualize your message using visualize aids. 4. Key points: Social Impact/Originality/Feasibility/commitment

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