7 ways to start generating income straight away as a social entrepreneur (without grant funding)
I’m passionate about helping social enterprises generate sustainable trading income, rather than being reliant on grant funding, or using it as a regular source of funding (read my blog on when you should apply for funding here: “The only time you should apply for funding as a social entrepreneur”).
But what are the different ways you can generate a trading income from day one as a social entrepreneur?
Most people just setting up and starting their social enterprise assume grant funding is the best way to get started. I don’t think this is the case in most situations.
It’s my belief that if you’re planning on being a viable, sustainable business (albeit it with a social purpose) then you should start as you mean to go on and start trading from day one.
Why seek funding to test out your idea, if doing so doesn’t actually test out whether you have a business model that works, tests whether you have the skills to sell or explores whether people are willing to buy your product or service?
So if you’re interested in generating income from day one then here’s six different ways you could start trading, plus a seventh because I think crowdfunding is a uniquely different approach to grant funding which tests out a market of interest, uses and builds a strong community of support and future customers, as well as encourages you to do some marketing (a key first stage to learning how to then sell).
1. Sell your products
This is an obvious one but often too obvious it’s missed! If you have a product that meets a specific need, solves a problem or provides what people want then you should be able to sell your product to a chosen audience (or audiences).
I’m always surprised why so many new social entrepreneurs do everything but start selling their products when they get started in business.
2. Memberships & Subscriptions
This is perfect for both product and service-based businesses (e.g. you sell your knowledge, skills, expertise or a online/ digital service). It’s a great way to generate a recurring income every month in your business.
Traditionally, we understand memberships for charities, such as the National Trust, but lots of different businesses (social enterprise and not) are using this as their core business model these days. Think of Netflix and Spotify they’re subscription-based businesses, even companies like Burger King (I’m told) offer a subscription service for people who frequent there restaurants regularly.
The best thing about memberships and subscriptions is you can build some element of stability in to your business, with recurring revenue each month, plus it has a compound effect as new customers join each month. (Yes there will always be some attrition each month, but if you have a retention strategy this shouldn’t be too much).
Example: Bam&Boo are the company I buy my bamboo toothbrushes from. Every 3 months they send me a new toothbrush in the post without me having to do anything (other than pay but that’s done by direct debit).
3. Courses & Training
If you have skills, expertise and knowledge other people or organisations value or would find useful then this is one of the easiest ways to get started with generating income (if you’re willing to reach out to your target audience and explain the benefits of working with you, of course).
Even if your core business or social mission isn’t delivering courses and training many social entrepreneurs and enterprises have unique knowledge, skills and expertise that other organisations or individuals would find useful like for example business or communication training. And therefore, it can be a way to generate income to pay for your core (non-income generating) activities (that you might otherwise apply for funding for).
4. Online courses, workshops + webinars
In some ways this is just like the above, however delivering things online can give you access to a much wider audience and therefore revenue stream. Plus, the costs of delivery are often a lot less as you don’t have to travel, hire a venue, provide refreshments or lunch etc.
It’s predicted that the e-learning industry will grow to a whopping $325 Billion by 2025 (source: Forbes, article).
Many people are often put off by running events or learning online but its’ relatively easy to get started and I’ve built my business (Share Impact) around it.
Top tip: The more niche you are in what you deliver the more successful you’re likely to be.
5. In person workshops or lunch & learns to corporates or big organisations
This is quite a specific revenue stream and not necessarily relevant to every social enterprise but I want to mention it here as I’ve seen it as a hugely successful approach for some of my own clients, and others who have it as their main income stream.
It appears that increasingly big corporates and organisations (including large charities with a lot of employees) are looking for a wide variety of guest speakers and facilitators to run short skills-based workshops or informative/inspiring Lunch + Learn sessions for their staff.
Not only are these seen as opportunities to upskill staff but increasingly part of a wider strategy to retain staff and promote wellbeing at work, whilst appealing to the growing demand on employees to meet employees widest needs and interests (e.g. to live and work “on purpose”; to live a happier healthier lifestyle; or to give back and have a positive social impact).
I’ve had clients who are charging from £250 to over £2000 for lunch and learn sessions or workshops. Again, if you have a specific experience you can share, knowledge or expertise in an area of interest it’s worth considering this as an option.
You might think it has to be something “corporate” or “beneficial” to staff in a professional sense, but it doesn’t. I’m increasingly coming across a whole variety of (dare I say) obscure and wonderful topics people are delivering talks and workshops on.
Learn more about how to sell to corporates on my blog here. (And if interested join my Sell to Corporate Course for Social Entrepreneurs here).
6. Crowdfunding
The last but not least approach to generating income which isn’t grant funding is crowdfunding.
Crowdfunding is a fantastic way to generate income by asking the “crowd” (or existing or growing community) for relatively small amounts of money, which collectively add up to your target.
It works best when either you have an existing community or network of people who you can ask for support from, or have a unique and engaging idea you can build a community of support around during your crowdfunding campaign.
For more information about crowdfunding check out this interview I did with Tom Dawson, Founder of StartSomeGood.
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