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Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts Read More

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Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts Read More

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Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts Read More

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Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts Read More

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Saturday, October 11, 2014

How to Start a social venture

social venture

Here in this social venture article, I am going to discuss some essential steps before preceding a social venture. Social ventures are those businesses where social impact is the right key result, and profits or market share become the secondary objective, so let’s look at the brief steps to start a social venture.

1. Choose a foundation

foundation

Look around yourself and you shall find a number of various causes you can work for and impact lives positively. It can be microfinance like SKS or Svasti, educational trusts (numerous schools/colleges), healthcare like Swasth India or a public sanitation like Sulabh International. The aim is to identify a problem and come up with an innovative solution to the same. The basic principles of a capitalist business can also be applied here, for example keeping costs under control, focus on customer service, keeping your volunteers/employees happy!

2. Finance for social ventures

funding

The world’s richest people are devoted to social causes, and there is more money being invested in social ventures than in capitalist businesses. The names include Bill Gates, Warren Buffett (via Gates Foundation), Michael Dell (via MSDF Foundation) and others. There are other social venture capital funds which have started including Acumen Fund, that look at social impact in addition to financial results. The other ways to raise funds for your social venture could be tap to CSR – corporate social responsibility budgets of large corporate. Various fund-raising events can also be conducted within your community or society to raise funds regularly (remembers how enthusiastically we used to conduct exhibitions in our school days and sold 10 Rs raffle tickets!). But it is important that investors look for sound management, regular reporting and maximum allocation of funds to the cause rather than operational expenses to maintain the organization. So do not make strategies for impacting a poor villager by holding meetings in a 5 star hotel.

3. Legal issues

legal issues

The social ventures can be registered like any other business as a private limited concern, or in other ways as a society, trust or Section 25 organization. Make sure you got all your paper work (PAN, address proof etc.) in Place before applying for registration. The cost is low but it takes patience and multiple visits to local government bodies before you get an approval. Section 80G for income tax exemption can be taken for saving your taxes, which will further enhance our longevity.

4. Marketing

marketing

For a venture with a social cause, traditional marketing techniques like TV, print etc. may not work. It requires a highly involved people to people interaction, education and awareness programs, building relationships with existing partners in the ecosystem (like Gram Panchayats in a village, Rotary Club in cities etc.). You can also be shameless while asking media asking media or corporate to contribute to your cause, but do not be a beggar - sell them the idea and they will respect you! 5. Sustainability Most social ventures or NGOs fail to sustain or scale due to lack of funds, slow response to change from consumers side, mismanagement of operations etc. so try not to fall into these traps. Social ventures need to build sustainability, so ensure events, royalty through research reports, volunteers contribution etc. I believe every venture is a social venture, whether you make profits or not, so try to create as much of social impact and make difference to the society.

Please review these articles also …

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Thanx for your valuable openion.