The Power of Social Enterprise... Harnessing the Social Profit Margin

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A common misconception in the business mindset betimes, is the sense that Social or Community enterprise initiatives are, in some way, less 'profitable' than businesses driven by commercial objectives.

The reality is quite different.

Obviously, it's important to be cognisant of the fact that not-for-profit organisations or ventures are not, in the main, driven by financial outcomes, however, their 'modus operandi' or operational style, should follow a similar rationale to those that are.  Why? Because an awareness of viability and sustainability is hugely important to the growth and development of any enterprise, whether it is generating social or financial profit.

Recent Government reporting has indicated the importance of social enterprise in contributing to a healthier economy in Ireland  -  not simply because social entrepreneurs are recognising the issues "on the ground", but that their awareness and understanding can tackle real problems, or better still,  provide real support to those in need.

As mentioned in the DJEI report, a taskforce and full reporting is set to illuminate the concerns and issues of those seeking to develop or grow a social enterprise.  From my perspective, one of the key cornerstones of social [and indeed creative] enterprise, is the need for clear, concise and non-jargonistic supports - often those starting out in these industries are focused solely on providing a solution, or pursuing a goal motivated by personal experience.  Reams of highly technical lingo or unmodified processes and approaches are not the route to go to support this industry.

That is not to infer that non-commercial entrepreneurs are not business thinkers - they almost certainly are - however their focus is different.  A social or creative profit margin is not motivated or propelled by financial outcomes, but by more focused societal ones - greater awareness, change and impact.

Undoubtedly, the Irish social profit margin will benefit our economy - however, the reality is, we must tailor supports to meet the needs of our social entrepeneurs in order to truly harness their potential.

Impact not intention... use your EQ!

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As you all know, in a previous life, I was an HR professional - and as a result, the importance of individual and collective capability, in business is something I feel strongly about.  During my time in the HR world, I trained [yes, many didn't know it was possible] in Emotional Intelligence, or EQi.

For those of you not entirely acquainted with the notion of Emotional Intelligence, put simply, it's an approach focused on understanding, more completely, ones own emotions and those of the people we come in contact with.  In my own experience, it helps organisations run more efficiently and also allows those in managerial or leadership positions conduct and manage their business relationships, and organisations in a more fluid and straightforward manner.

So, what am I on about EQ for? Well - because I am continually amazed by the seeming lack of it in business - and business relationships.  Sure, we all find ourselves 'stretched' betimes, and there is often a point at which, in stressful situations, we may find it difficult to self-regulate. HOWEVER, do we think of our reactions in terms of how they might impact us, or potentially, those we work with? Not always.

Another one of my pet subjects is mindfulness, and it sits, very nicely, alongside EQ.  Adopting a stance of being in business as opposed to doing business provides a focus which can undoubtedly add great value to ones working life, as well as fueling more centred, EQ-friendly business relationships with colleagues, staff and clients.

Dovetailing with this blog posts' title - impact not intention... in adopting a more mindful approach to being in business, you're facilitating yourself to think about the impact of the way you behave, communicate and deal with others.

Think back over your recent interactions - any specific one you wish had gone better or more smoothly? A client or customer who you wish had given you a different answer? Staff or colleagues who really 'wound you up'? If you could rewind and change how it played out, would you?

Change your direction and remember: impact not intention.

Growing Pains... and how to manage them...

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As per normal, there was a moment of inspiration for this post... it came about following a series of conversations with SME clients, all juggling the many 'hats' involved in running a developing business.  Operational demands, client and sales development, personnel management, cashflow - the list goes on - and the biggest difficulty? All these various 'hats' draw attention away from the one thing that will guide their way out of 'multi-hat' management... the business strategy.


The undeniable truth of growth in business, is that at times, it can be quite 'painful' - or at least - uncomfortable for those leading it.  Owners, principals, managers, founders all have to change their tack, and become directors or leaders of an evolving organism, which can at times be unruly and challenging as it advances.


There are realities which must be employed in order to harness your SME's growth, and ensure it is on the right track.  They can be difficult to implement, but are necessary nonetheless.


My advice? Make time to step back [hard but absolutely required]. Observe the growth to date in a detached and realistic manner; compare it to that of competitors, colleagues and those you aspire to.  Where do you sit, by comparison? Examine your future plans in line with the current position of the business - what is working, what isn't, what's needed next?


Don't underestimate the efficacy of the SWOT analysis - at every level in your organisation.  Why? Because it will provide you with clarity and insight, as well as an informed viewpoint.  


Undoubtedly, the time needed to build strong scaffolding for your business growth plan is time well-spent, so don't put your growth strategy on hold.  Meeting clients experiencing the discomfort of growth regularly, I know only too well how difficult it may seem to take time 'out' to do the labour-intensive work of planning.  The reality? If it doesn't happen, you risk your business turning into a walking sticky-plastered-leaning-tower-of-Pisa... e.g. functioning, not at an optimum level, and leaning in a hugely questionable direction.


As I regularly say to clients - the one thing that will undermine stress and anxiety in business change - is planning and action.  Why? Because it provides the individuals involved with a real sense of tangible outcomes, instead of merely feeling as if they're simply 'treading water'.  


Next step... implementation... my next blog post!

Share the Vision!

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Talking with a client yesterday, we stumbled across a subject which lead us into the whole issue of 'sharing the vision'.  Not just with clients, stakeholders and the media - but [and most importantly] with your people.

As you all know, in a previous life, I worked in HR, and can state unequivocally, that I am passionate about staff buy-in.  Why? Because, to utilise the often over-used term, "bringing your people with you" can change the way you do business in a very meaningful way.  Think of what your people bring to your business - in terms of delivery to customers, operational efficiency, management of the organisation - clearly communicating your vision can influence how every role and responsibility is delivered.  How? Through commitment.

Commitment comes in the form of consideration, connection to and full comprehension of a vision.  It means that your people SEE, KNOW and AGREE with your vision.  Your people become followers, advocates, collaborators and supporters of your vision.  Imagine how powerful your business could be, if you shared your vision?

Another Consonant, Carol... Cs, Ps and USPs!

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I found myself driven to write about this following a course I delivered to some start-ups on Market Research.  To contextualise the training, it was a prescribed course [and a valuable one, in fairness] for individuals about to set up a business.  What was my problem, then?  The jargon.

As I continued, with gusto, through the merits of Market Research – how it is a must for your business – on to the jargon of Cs, Ps and USPs, I found my head spinning involuntarily in a sea of pointless consonants. 

These motivated business people didn’t need to listen to the jargon... they wanted simple, clear advice and guidance on how they could de-risk their business idea.

What’s the point of this rant? To be precise; it’s the importance of understanding your market... who’s the competition and most importantly, who’s the customer [and that you have enough of them].  You don’t need Cs and Ps.  You need information, and market research.  Facts, detail and validation is key.  An understanding of why and how you can offer a better, more novel, or effective solution to the customer’s problem. 

More of the same? Check it out here.

In business - it's nice to be nice but it's more important to be professional...

Image - JackMalcolm.com

Definitely one of the defining learning curves for most colleagues, clients and friends in business - the importance of professionalism. Why? Well, let's be honest, as a nationality - we like to be liked. We don't readily warm to the notion of people in some way not thinking we're 'nice' or 'good fun' ...

Why does this pose a problem, I hear you ask? Well. Think, for a moment, of some of the individuals - famous or not - you admire. Ever wonder why they might be respected? Do you think it's because they tell a good joke in the pub or because they deliver a creative solution to a client problem?

Lacking professionalism in our approach to clients, our business, our colleagues - how we communicate, manage and interact - can damage our business's brand in an unimaginable way.

In todays' business climate, it is more important than ever before to ensure that professionalism is at the core of your operation. Reputation for delivery, customer service, attention to detail and attitude - amongst many other things - will decide whether your business will survive [just about] or sustain itself and grow.

Does your business have a reputation for professionalism?

Mini-Musing... Stay On-Target

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Sounds straightforward, doesn't it? Staying on-target. What does it mean to you? Keeping to budgets? Delivering on projects? Sticking to your business plan? Keeping the client relationship sweet?

Actually, it's all of these things and more. Staying on-target means keeping your business's trajectory to the front of your mind, and to the front of those at the centre of decision-making and leadership in your business. Losing sight of how your business is progressing can be catastrophic. Many casualties are resultant from visionary 'slides' which normally occur when a business is functioning successfully... the time during which it is felt that no time or energy is required in the direction of reviewing or adjusting the business model.

Be complacent at your peril, folks - if you don't keep your eye firmly on-target - you may well find yourself at a loss to your competition, or sorrowfully bemoaning the loss of client contracts...