Enterprising for Social Good (SCALE)
Micro, small and medium size businesses
We seek collaboration with entrepreneurs.
HR&S / Action10 claim that if social problems are to be tackled successfully,
organisations seeking to solve them need sustainable revenues and investment to innovate and grow,
thus the program itself must generate funds to cover the program running costs without being dependent on donations.
Moreover the creation of, or employment in companies with local or national ownership is seen as means for development. Good businesses start with a good business idea. That would be a fundamental principle, but it is also true that a good idea is not the only thing required to get a business going.
Aspects to consider are also that i) good ideas aren’t necessarily unique, ii) timing is critically important, iii) “on paper” does not always translate to real life, iv) circumstances change, and v) execution is as important as planning. The HR&S / Action10 Business idea template aims to cover the important aspects which require attention, at the same time the template aims at as not being too demanding, but a first step. HR&S / Action10 also offer a Business plan template (www.humanrightsandscience.se), which compiles more details.
Pitch
How we develop a pitch.
Reflections before starting
- A potentially successful pitch is not a statement of that we need and/or desire the funds or support a development institution has as a mandate to invest. A potentially successful pitch is a piece of proof of that we already have a system in place that ensures evidence based sustainable impact, matching exactly the Ambitions of the development institution, if funds and/or support is invested in us.
- Key here is that we are not asking for plain support to us,
but we are helping a development institution reach their ambitions
-which have to be overlapping with our our ambition for the development institution to qualify as potential partner to us.
We act as a business consultant. - It is more efficient to carefully review ROPEs of potential partners and identify strong matching than to send vague proposals. It is also crucial for our brand that if an Institution hears from HR&S they are already sure that the message or proposal is quality.
- People are very busy and we shall not waste anyone else’s time, so when we do reach out,
- our request is always professional, easy to understand, makes a lot of sense,is interesting for the targeted person, helps the targeted person with something she/he needs help with, we are sure we target the right person…, thus, it is of top quality in every aspect.
- our programme is large enough ensuring that the % admin cost is low for the potential partner.
- we have already coordinated we an impressing number of co-partners, many of which are already at reach within the HR&S family.
Preparations
We often develop pitches by combining ROPE reviews of the partners form whom we propose a win-win partnership (including ourselves).
- Clearly identify the partners for the collaboration.
- Compile ROPE reviews for each partner and upload on the CRM platform in use.
- By doing so can we use the same ROPE review several times.
- Assess:
- The level of Ambition overlap
- If our Sustainable Impact represents a solution to their Outcome Challenges.
- If the assessment scores high, then we do have a value proposition to offer, and it is worth the effort to develop a pitch.
Pitch Development
- When presenting the problem and the need,
ensure that it is a something that the potential partner(s) recognise and feel comfortable with.- This is the overlapping ROPE backgrounds/contexts for all involved partners, thus the reason to why they have defined their respective ambitions.
- The need is often versions of the Outcome Challenges.
- When presenting the solution and our competitive advantages
ensure it is an over-lap of Activities. That what we want to do is also what the potential partner wants to do AND needs support to address.
As competitive advantages we present our SOPs, our GMPs and out TestE survey findings. - When requesting an investment
try to leverage it to be at at price that is easy for the potential partner to cover. Maybe something small, very easy to understand, precise reporting and a low price. So that they decide to try/take the risk with a new partner, us. Then hopefully we will get a change to scale up, later.
Reflections when developing a pitch involving a major development institution
We often build on the Ambitions and Progress Markers of the financial partner’s programme, as many of these partnerships is framed by a larger institution wanting to implement a programme and for this programme they have funds to invest. This situation is similar to the implementing partner acting as a consultant to the financial partner. The Outcome challenges will be lack of implementing capacity by the financing partner and the activities possibly have tasks for the financial partner, complemented by tasks for the implementing partner, in a way that makes a lot of sense. The Stakeholder Committee is composed of mainly the implementing partners, possibly with representatives from the financial partner. The input is the value proposition and the competitive advantages, thus the implementing partner’s GMP and previous evidence of sustainable impact. The RISEagency costs are covered by the financial partner, and are included in the proposed investment and business plan.
Version one – a first short text
Introduction
Introduce yourself – give specifics.
This is where you tell people who you are and why you’re an authority. …
The problem
Define the problem and explain why your audience should care. …
Our solution
Explain our solution. …
Requested investment
Make your ask. …
Thank you
Say thanks.
Version TWO – in a meeting/
a little bit longer text if a first connection has already been made.
Establish the need
“What problem are we trying to solve?” Convince the audience that there is a need. Give the audience a definite, concise statement of the problem, with an example or two illustrating the need. Show the audience how it affects people. Then follow up with our solution to address the need.
State our competitive advantage
What is our competitive advantage? How is what we are pitching better than what our competitors are offering—or at least, how it is different. Also show any potential entrants in that space. What is our shield against those?
Include a sound bite
A sound bite is a short, catchy phrase. Most people don’t remember data, but they will remember a sound bite. A sound bite is the Velcro that makes the message stick. We all remember Steve Jobs’ famous sound bite, “The world’s thinnest notebook” when he first introduced the MacBook Air. It pays to spend time to come up with just the right sound bite to catch your listeners’ attention.
Introduce the team
The audience needs to have the confidence in that we have a solid team to back us up. Keep the team’s accomplishments relevant and high level, and include photos.
Take “yes” for an answer
We must know when to stop selling our idea, to be able to read the signs that tell us our idea has hit home. The more we continue to talk beyond that point, the more we are likely to say something that can reverse the positive direction.
The follow-up
Come prepared for the next steps. What happens if we get a positive response? What do we want our audience to do?
We shall practice our follow-up steps as diligently as we practiced the pitch. Preparation will help us move forward with confidence.
Business Model Canvas
Components
- The team
- The expected outcome
- Products and services
- Customers
- Finances
- Scalability
- Competition
- Risks
- Implementation plan
The team
- Team members
- Good team spirit
- Cross-cultural partnership
Team members
- Who are in our team?
- What relevant experiences do they have?
- What roles do they fill?
- What is the background of the entrepreneur and leadership team?
- Why are they qualified to lead this venture?
- What are their skills, do their skills complement one another; are there any skill gaps?
- Do we work well together?
Good team spirit
- How do we ensure cross-cultural partnership awareness?
- An honest, positive and supportive team-spirit is crucial for the success of any business
Cross-cultural partnership
- How do we ensure cross-cultural partnership awareness?
To understand another culture is not always easy. The aim with having a Cross-cultural Partnership (CCP) awareness raising approach is to increase knowledge and understanding, meeting needs and at the same time impose empowerment and respect. The CCP aims to provide information and thus to help avoid misunderstanding.
2. The expected outcome
- Identified challenges and proposed solutions.
- Sustainable social impact.
- Which are the identified challenges?
- Why do we do this?
- What is our proposed solution?
- What is our vision?
Social impact
What is the theory of change?
How do we see our organization causing customer “actions” that link to measurable “outcomes” and thus real and susainable “impact”?
What social, environmental and financial impact can be achieved (positive and negative)?
How does our organisation intend to measure the outcomes, and how do they tie to social impact? (eg metrics, definitions).
3. Products & services
- Products and services identification
- Status of product development
- Modes of selling
- Products and services identification
- Which are the products and services?
- What is the product (define succinctly)?
- What pain point facing customers does this product address?
- How does this product – in a unique or superior way – address the pain point?
- What is this product’s unique advantage? unique solution? product innovation? improved quality?
- Business model innovation? Customer reach? Unique partnership?
- Status of product development
- Is our product / service fully developed?
- If not, how much time and capital would be required to create a product / service that can be sold?
Modes of selling
Where will we sell our product / service?
How will we sell our product / service?
How will the entrepreneur be able to produce the product, or deliver the service?
What is the distribution strategy to reach the customer?
What is the customer acquisition strategy?
What aspects of the business model have/have not been tested or piloted?
4. Customers
- Customer identification
- Customer paying capacity
- Customer identification
- Who are our first customers?
- Who are our long-term customers?
- How many are they?
- How do we reach them?
- Who are the target customers?
- What customers have used product/ service, and what impact has it had on their lives?
- What is the customer’s willingness to pay?
- How large is the addressable market size, and customer demand?
- What evidence exists that customers care about the value proposition (customer referrals, voice of the customer interviews…?
- Customer paying capacity
- How much money do we estimate that our customers can spend on our product / service?
- How big is our potential market?
5. Finances
- Revenue.
- Start-up capital and future costs.
- Income statement budget.
- Cash flow budget.
- Financial sustainability .
- Partnership agreement.
- Revenue
- How do we generate revenue?
- Where will we get the money from?
- Start-up capital and future costs
- Which are our biggest costs?
- Will we need capital for the first year?
- How do we plan to finance this?
- Which are our future costs?
- Income statement budget
- Develop an income statement budget.
- Explain the numbers and the assumptions we have based our calculations on.
An income statement for a business reports its earnings and expenses for a given period of time, for example a year. It is a predicted income statement for a future period of time.
- Cash flow budget
- Develop a cash flow budget.
- Explain the numbers and the assumptions we have based our calculations on.
A cash flow budget is an estimate of all cash receipts and all cash expenditures that are expected to occur during a certain time period, for example a year. Cash flow budgeting looks only at money movement, not at net income or profitability.
- Financial Sustainability
- What is the revenue model?
- When will the product/service be cash-flow positive? Financially sustainable?
- What milestones will this financing round enable? (Please include a copy of the company’s financials, and explain any assumptions used).
- Partnership agreement
- What is the contribution and the benefits for all partners?
- How do we ensure that contributions and benefits for all partners balance?
- How do we ensure a continuous excellent team spirit among partners?
In a business partnership between, let us assume two actors, both sides must contribute and benefit in a balanced manner, preferably equally much because this type of business balance is more easy to feel comfortable with.
6. Scalability
- How will the organisation achieve scale?
- What is the existing scale (e.g. number of customers reached)?
- How will our organisation achieve significant scale within five years (e.g. reach 1M end users; grow by order of magnitude).
7. Competition
- What is the competition?
- What is the advantage (in areas that matter to the end customer) of this product/service over existing ones that are either currently available on the market or through charitable distribution channels?
- What are those alternatives?
- What are the three-to-four key market drivers that would affect the market and all players operating within it?
8. Risks
- Which are the risks?
- Which are the main risks your organization faces or would face, and how can each risk be mitigated? (e.g around technology, manufacturing, product, marketing, IP, demand, operations, distribution model, etc.)
9. Implementation plan
- Create an implementation plan with activities and milestones.
Lean start-up business model canvas
Business model canvases focus on the infrastructure of a business, while Lean Canvases start with a problem and work toward a solution using an actionable template.
- Problem
- Solution
- Key metrics
- Unique Value Proposition
- Unfair advantage
- Channels
- Customer segment
- Cost structure
- Revenue stream
1. Problem
A lean startup plan starts by identifying a problem. It may be a good idea to start by identifying one to three problems and listing them in your Lean Canvas. The intention of starting your business plan with a list of problems is to ensure there is a market for your product.
Example: HR&S HQ in Stockholm
- The number of extremely poor people in sub-Sahara Africa increases with many millions every year. They lack salaries.
- Institutions in sub-Sahara Africa tend to lack management strategies for a sustainable development. We lack research, innovations and enterprising.
- The aid industry does not target salaries but donor dependent NGOs and tend to lack management strategies for extreme poverty eradication.
2. Solution
Your startup’s task is to create a solution to the problem(s) you’ve identified. This section of your Lean Canvas outlines the solution for each problem you posted in the first section. Keep your solutions concise and easily digestible.
Include a minimum viable product (MVP) that coincides with your proposed solution. (A MVP, is a product or service that has just enough basic features to attract some early-adopting users in order to validate a product idea as quickly and easily as possible.)
Example: HR&S HQ in Stockholm
- Empower i) local micro entrepreneurs and saving-loan arrangements to scale, ii) institutions that serve the underserved communities with loans, iii) small and medium size entrepreneurs that offer products, services and employments requested for by the community.
Offer micro, small and medium size business loans and on-site guidance. Encourage the registration of the businesses. - Offer management strategies, training, coaching and an application, to local academia, laboratories, and entrepreneurs.
- Offer management strategies to development institutions targeting research business and trade, development banks and the international private sector operating in SSA. Offer management strategy training, coaching, an application, network trough local HR&S Branches and CSR events.
MVP
1. Free on hour seminar expecting to lead to paid for 3 h training, SEK 10,000.
2. CSR on-line, or at the HR&S office on-site when the company staff helps solving challenges of local RISEmembers, SEK 20,000.
3. Key Metrics
Key metrics, the numbers that tell you how your business is performing, vary depending on your startup model and product. For example, some startups may include an ideal subscription percentage, while others may include an ideal amount of downloads in the first week. These goals will be used as a point of reference for you and your investors to assess your startup’s viability and success.
Example: HR&S HQ in Stockholm
- Number of entrepreneurs, size of loans given out.
Number of entrepreneurs paying back timely, size of income generated through interest.
Number of RISEtalks, % of entrepreneurs participating in RISEtalks, size of income generated through RISEmember fees. - Number of paying local partners, size of income generated through services.
- Number of paying partners, size of income generated through services.
4. Unique Value Proposition
Describe in a single sentence why your startup is unique and valuable. Ideally, your unique value proposition will demonstrate to customers the promise that your startup solves their problem in an easily marketable way. “We help (target customer) who has (problem) with (solution).“
Example: HR&S HQ in Stockholm
- Strategies that empower research innovation products and salaries in SSA ?
- Salaries for everyone ?
- We empower research, innovation and social enterprising in Africa – RISEafrica
5. Unfair Advantage
What gives your startup a competitive advantage? Describe the edge your startup has that cannot be bought or copied by others — setting you apart from your competition.
Example: HR&S HQ in Stockholm
- We have 25 years of experience from on-site collaboration and we have
- Country Branches registered in eight SSA countries.
- We target extreme poverty eradication through research innovation and social enterprising.
- We fundraise for business-loan capital through our sister organisation Action10, which is volunteer driven.
- We address the challenges of our partners.
- We operate with a strategy for change targeting a change of mind-set concerning the expectation of donations as well as corruption being a social norm.
- We define quantitative indicators as we design our programmes and measure progress or ot progress real-time while taking informed decisions.
- We translate successful procedures into standard operations and benefit from those in our Good Management Strategies.
- We seek evidence for sustainable impact or no impact.
6. Channels
List the marketing strategy you’re planning to use to attract customers. This can be inbound or outbound channels to reach customers.
Example: HR&S HQ in Stockholm
- Website
- LinkedIn
- own page and interactions with others.
- YouTube training videos.
- Pitch presentation / print-out
- Pro bono presentations, and then bring the pitch
- within present network
- Reach-out pitch calls & meetings.
- Identify targets through CRM databases.
- Publications
- Attend seminars
7. Customer Segments
Establishing your target market is absolutely essential to effectively marketing your product and keeping your startup afloat. Include your target customers as well as early adopters (otherwise known as the ideal customers) that your startup will initially appeal to.
Example: HR&S HQ in Stockholm
- Development banks
- AfDB, WorldBank.
- Development institutions targeting research, innovation and social enterprising
- OPCW, SidaForsk.
- Private sector CSR.
- Direct contacts
- Private sector with engagement in development and in SSA.
- Sida’s list, direct contacts
8. Cost Structure
What your startup will be paying continuously without change (fixed costs) as well as costs that can change over time (variable costs) should be listed here. Essentially, any expense your startup will incur doing business should be considered in the cost structure to budget accurately and secure the necessary funding.
Example: HR&S HQ in Stockholm
- Office
- Bank/website/auditing
- Website improvement
- Application development
- Seminar attendance
- Salaries
- Employee support
Included in programme revenue
- Travels to Africa
- Events
9. Revenue Streams
You know your costs. Now, you need to make a list of the revenue streams you have to cash roll your startup. These are your revenue streams, and they can be anything from business loans to venture capital.
Example: HR&S HQ in Stockholm
- Private financing
- 3 h trainings, SEK 10.000
- CSR events, SEK 20.000
- Programme partnerships
Steps After Creating a Lean Startup Plan
Now that you have created the plan for your startup, it’s time to put it to the test. As much as startup plans can help entrepreneurs prepare for the road ahead, there is always room for improvement as the startup grows and adapts.
Test The ultimate test of your startup plan is to get to work. In lean startup methodology, entrepreneurs are encouraged to place their product on the market in order to rapidly improve upon their product and business as a whole. Therefore, in order to get an idea of what needs to be adjusted, you’ll need to put your business plan to the test.
Review Get a clear understanding of customer reception and feedback you receive about your startup’s products and services. You don’t need to take every suggestion; however, this feedback should help inform the adaption of your product to make it more consumer-friendly. Be open to criticism and ask questions. Listening to the response to your initial products can help you develop new strategies to improve.
Revise Implement your findings from reviewing feedback by revising your business plan and rethinking product elements. Don’t be afraid to go back to the drawing board when you need to reimagine a business plan. The benefit of using a lean startup business plan is that there is a great deal of flexibility available to business owners to reassess their vision.
About the
Unique Value Proposition
A Unique Value Proposition (UVP) is a clear statement that articulates the exclusive benefits a product or service offers to customers. It is what makes a business’s offering different and better compared to competitors. This is sometimes also referred to as the Unique Selling Proposition (USP). A well-defined UVP can help businesses resonate with their target audience, guiding marketing efforts and brand positioning. A UVP distils what your business does into a simple, digestible message. This helps potential customers quickly grasp if you can solve their needs.
A UVP is meant meant to be a focal point in various customer touchpoints. One of the most common locations for a UVP is the company’s website homepage. Since this is often the first interaction a potential customer may have with the brand, showcasing the UVP prominently ensures that the unique value is communicated effectively. It might be placed as a headline, a tagline, or part of a banner, accompanied by relevant images or videos that illustrate the proposition. Other places a UVP may present itself are : Product packaging, Marketing materials, Sales pitches and presentations, Social media and content marketing, Customer services interactions, Email campaigns.
Your UVP should inform the tone, visuals, and other elements of your marketing. All materials should reinforce your unique positioning. Product and engineering teams should use your UVP as a North Star. It keeps them focused on developing features that align with your brand promise. A UVP unifies your team around a common goal and set of ideals. This galvanizes the entire organization around your mission.
An impactful UVP has several key characteristics:
- Clear and concise: Your UVP should be short, usually just one or two sentences. You want it to be easily understandable and memorable.
- Focused on the customer: The UVP is all about explaining how you solve pain points and deliver value to the customer. Avoid talking about product features and keep the spotlight on your customers’ needs.
- Differentiated from the competition: Your UVP should emphasize what sets you apart. Why should the customer buy from you over any other option?
- Credible: Don’t make claims you can’t back up. Your UVP should be believable and paint an honest picture of your offerings.
- Evokes an emotional response: Connect with your audience on an emotional level to make your UVP more compelling and impactful.
Unique Value Proposition Examples
- Spotify’s UVP can be summed up in their tagline: “Music for everyone.” This statement illustrates their commitment to democratizing music access across genres, artists, and languages. It’s not just about the vast library of music that Spotify offers; it’s about the personalized experience that caters to the diverse musical tastes of individuals around the world.
- Imperfect Foods’ UVP can be encapsulated in the statement: “Groceries that help you fight food waste.” This statement conveys their mission to reduce food waste by selling imperfect or “ugly” produce that might otherwise go to waste. By connecting consumers with these products, they offer an environmentally conscious option for grocery shopping, aligning with values of sustainability and responsible consumption.
- WordPress’ UVP can be seen in their statement: “Welcome to the world’s most popular website builder.” This powerful message conveys the platform’s widespread adoption and ease of use. By emphasizing its popularity, WordPress signals trust, reliability, and a vast community of users, which is attractive to anyone looking to create and manage a website without the need for extensive technical knowledge.
- Hulu’s UVP is communicated through the phrase: “All The TV You Love.” This straightforward message tells potential subscribers that Hulu is a one-stop destination for a wide variety of television content. Whether it’s current-season episodes from major networks, which are available to stream soon after airing, or complete libraries of hit TV shows and movies, Hulu’s UVP emphasizes its extensive selection tailored to cater to individual preferences.
- Evernote’s UVP can be expressed through the phrase: “Tame your work, organize your life.” This two-fold message resonates with both professional and personal users, promising a platform that brings order to work chaos and helps organize various aspects of personal life. By offering cross-platform accessibility, integration with popular tools, and powerful search and organization features, Evernote delivers on this unique promise, making both work and life more manageable.
- BetterHelp’s UVP is embodied in the simple yet profound statement: “You deserve to be happy.” As an online therapy platform, BetterHelp connects individuals with licensed therapists in a convenient and confidential manner. Their UVP emphasizes the intrinsic value and right to happiness, offering support and encouragement to those seeking mental health assistance.
- Mrs. Meyer’s UVP is beautifully encapsulated in the phrase: “Rooted in goodness.” As a brand that offers earth-friendly cleaning products made with natural ingredients, Mrs. Meyer’s positions itself as a choice that’s not only good for your home but also good for the planet. This UVP communicates the brand’s commitment to quality, environmental responsibility, and the nourishing power of nature.
How to Write a Unique Value Proposition
- Understand Your Target Customer. The first step is gaining a deep understanding of your ideal customer. Your UVP should speak directly to the target customer and address their needs better than any other option. Ask yourself: Who is my target audience? What problems or needs do they have? How are current solutions failing them? Spend time researching your customers through surveys, interviews, and reviewing feedback. Identify their demographics, behaviors, frustrations, and goals. The more insight you have into your audience, the better you can position your offer to appeal to them. We suggest using tools like Google Analytics or Typeform.
- Identify Your Competitors. Conduct a competitive analysis to see how other companies approach the same customer needs. Make a list of direct and indirect competitors in your space. You can find competitor information through tools like Semrush or Ahrefs. Review their websites, content, and messaging. What language and positioning do they use? What differentiates them from you? Identifying gaps and weaknesses in competitors’ messaging will help you craft a unique value prop.
- Determine Your Strengths Now reflect on what makes your company stand out. What capabilities, offerings, or approaches do you have that competitors lack? These strengths will be the foundation for your value proposition. Some areas to audit include: Product features or technology; Level of customer service; Price, quality, or speed; Distribution model or reach; Company values and mission. Pinpoint where you excel compared to alternatives. Having clarity on your differentiators is key to communicating value.
- Refine into a Concise Statement Once you’ve drafted an initial UVP, refine it into the most crisp, concise statement possible. You want a short, memorable phrase that captures the essence of your positioning. Aim for a single sentence with about 5-10 words. If it’s much longer than a short elevator pitch, it needs editing.
Steve Blank, a renowned entrepreneur and academic, suggests a formula that succinctly defines the target customer, the problem, and the solution. The formula looks something like this: “We help (target customer) who has (problem) with (solution).“
Using an existing template can provide a helpful starting structure and ensure you cover all the key elements in your unique value proposition. You can even combine it with tools like Headline Analyzer to ensure your message resonates.
Some extra tips for writing a compelling UVP:
- Use clear, simple language that avoids overused industry jargon
- Quantify benefits with specifics like numbers, stats, or timeline
- Focus on unique strengths that competitors cannot match
- Avoid making generic claims that could apply to any business
- Back up claims with evidence, validation, or proof points
5. Test and Iterate
Validate your UVP with the target audience by gathering feedback. Ask customers, prospects, advisors, and your team:
- Does this resonate with you? Why or why not?
- What could be clearer or more compelling?
- How is our value proposition unique from alternatives?
Be prepared to iterate and optimize based on learning. Refining your UVP is an ongoing process as you launch campaigns and get market response.
Consider A/B testing different versions of your UVP. This is a method of comparing two versions of something to determine which performs better. To A/B test your UVP, create two variations of your website, ads, or other marketing materials – one featuring Version A of your value proposition and the other featuring Version B.
Drive equal traffic to both variations, either through paid ads or by showing random visitors each version. After sufficient traffic, look at the results. Which UVP version had higher click-through rates, conversions, or other metrics you want to test? The better-performing variation is the one you should use moving forward. There are a variety of A/B testing tools available on the market, such as Optimizely, Crazy Egg, and more.
6. Align Messaging and Execution
For your UVP to work, it cannot just be an empty slogan. You must back it up consistently across websites, ads, sales materials, and customer interactions.
Train employees to align language, tone, and behavior with your value promise. Without coherent messaging and delivery, even the best UVP will fall flat. Communicate your proposition throughout the organization.