Satisfying Real Social Needs

After identifying a true social need, social entrepreneurs must determine how to satisfy those needs in the best way.  Once you have determined an innovative solution for your social cause or issue, do a feasibility analysis before proceeding further.

Use your social capital to get help and obtain information. Talk to friends, family, and members of the target market, competitors for unbiased feedback. Ask these questions:

Why would my target market need my offering?

What is the best way to assess the needs of my target market?

What features are important?

Why is my solution better than both current and future competing solutions? Answer this objectively without being overly optimistic. Engage in a fair evaluation of strengths and weaknesses.

Is it economically feasible to produce the product or service?

A few tips on production -Overdesigning the product can lead to a price point beyond what your clients can pay.  Keep production costs manageable and volume appropriately high. Lastly, high development costs and low demand do not create value and will not lead to a sustainable mission.

Invest time in understanding the marketing and selling process. The best marketed products often outsell the better product (if not marketed well). Focus on two points, personal selling and pricing of new products and services. Success depends on correct pricing.

Count all the costs, including design, production, distribution, marketing and support.  Know both variable and fixed costs. Prepare a scope of forecasts and goals for the future. Once you have a good idea of costs than you can work on pricing. 

What price should I charge?

Estimate the volume of sales to determine a price high enough to cover costs but low enough to be below the competition and still create value for your target market. If the right price cannot be met, consider alternative solutions or determine the amount of other revenues needed (like donor contributions) needed to make up the loss.