Business Model Primer

1. Business Model Primer Kim Alter Virtue Ventures LLC

2. What is a business model? A conceptual tool that describes the value an organization/enterprise offers to its customers/clients and that expresses the architecture of the firm/organization and logic for creating, marketing, and delivering this value and relationship to capital, and how together to generate sustainable revenue streams.

3. Strategic Objectives Strategic Goals Business Model Business Plan Planning Process

4. Business Model Building Blocks

5. Model Building Blocks Informs:

6. Target Market: Refugees • Demographics • Economically active • Weak social ties • Vulnerable • Few assets • Inability to repay • Psychographics • Transient • Risk adverse • Extra burdens • Geographic • Refugee camps • Poor or degraded market & infrastructure

7. Value Proposition Enable economic security and create a sense of community, trust, and physical and emotional safety throughout transition Financial Services Features Grants and training before loans Monitoring Mentoring Certificates – credit rating Support to start up micro-businesses Transparent processes Continue service Branding Product Value Proposition

8. Customer/Client Interface Client Consumer Client Producer Social      Client Worker Market Enterprise   Client Beneficiary Client Community Environment Public

9. Client/Customer Interface:Relationship Dynamics

10. Designing Product or Service Producing Product or Service Marketing to Target Procuring Supplies Employing Workers Dis-enfranchised Groups Delivering Education Green Techniques Micro-finance Fair Trade Management InfrastructureValue chain structure and Opportunity Adapted from Dees (2002)

11. Target Population Customer * Social Impact • 20 Clinic Members • Established 25 Years Ago • (Non–Profit) CCC CCHN • 13 Clinic Members • Established 5 Years Ago • (Non–Profit) Financial Viability Quality Management Practice Management Managed Care Contracting Technical Services Organization • 420 Clinic Members • Established 18 Years Ago • (For–Profit) Council Connections Service Lines Pharmacy Lab Services Med/Surg Supplies Office Supplies Management InfrastructureValue Configuration

12. Profit For biz & program investment Social Costs Breakeven AFTER Social Costs Enterprise Revenue Subsidizes Social costs Breakeven Before Social Costs Business Expenses Financial Aspects Years Enterprise Revenue Social Expense Business Expense

13. Financial Aspects Cost Structure:subsidies • Volunteer time/expertise • Infrastructure • Overhead and back office • Professional fees • Staff time spent on enterprise and allocated to other budgets • Grants that cover social service costs or subsidize service prices • R&D

14. Employment Model Market Organization Clients Product Social Impact Financial Sustainability

15. Client Entrepreneur Model Market Organization Loans Product Financial Sustainability Social Impact

16. Fee-For-Service Model Services Clients Social Impact Organization Sustainability

17. TOPLA TOPLA Market Intermediary Model Organization Market Clients Financial Sustainability Social Impact

18. Service Subsidization Model Organization Clients Services Market Social Impact Financial Sustainability SocialImpact Clients

19. Social Impact Organizational Support Model Subsidiary Foundation Organization Clients Financial Sustainability Financial Sustainability

20. Cooperative Organization Sustainability Internal Clients MarketSocial Impact External Market

21. Social Value Added In the business model

22. Somers, Shaping the Balanced Scorecard for use in UK Social Enterprises, “Social Enterprise Journal”

23. Somers, Shaping the Balanced Scorecard for use in UK Social Enterprises, “Social Enterprise Journal”

24. Business Model FRAMEWORK