The Art of Crafting a Business Plan for Social Return on Investment
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1 The Art of Crafting a Business Plan for Social Return on Investment Antigua, Guatemala, July 19-22, 2004 Claudia Muñoz-Reyes P. PROCOSI
2 PROCOSI is a Bolivian network of non-profit organizations that contributes to improving the general health of the population with activities aimed at strengthening the performance of its members development and health programs and influencing public policy. The largest network of NGOs working for Health and Development in Bolivia
3 Members of the Network Issues in which the Network is Involved Public Health Community Development Microfinance Rural Agricultural Development Local development Education Food Security Gender Issues Citizen Participation Sex Salud Fundación Cuerpo de Cristo Centro de Investigaciones de Energía a y Población
4 Overview of the Presentation I. The Need for Business Planning II. III. IV. The Program Introduction to the CD-ROM Experience as a Partner for Latin America V. Sustainability Model VI. Demand and Potential Investors
5 The Need for Business Planning Diversify sources of financing and reduce risk. Establish strategic alliances between NGOs from the public sector and the private sector. Speak to the private sector using their terminology. Introduce new products and services that make a difference. Link financial investment to results.
6 The Program Is a south-south strategy aimed at strengthening NGOs, small and medium enterprise and municipalities. It concerns providing an efficient tool for diversifying sources of financing. It is a way to get closer to the private sector with products and services that have measurable results.
7 The Objective Is to provide a business planning technology that makes it possible to give participating organizations the items necessary to develop and sell revolutionary ideas that generate both social and financial return on investment.
8 Premises Good ideas attract money (financing). 2. Backers or investors want their money to make a difference in the lives of disadvantaged people. 3. Ideas generated by the organization are more attractive than those adapted by the organization.
9 Learning Objectives Formulate the mission of the organization. 2. Organize revolutionary ideas into new products and services. 3. Assess the potential market and design a marketing plan. 4. Identify a design team and implementation. 5. Estimate the financial needs for the design and launch. 6. Project the social return on the investment and the financial return, if any.
10 Introduction to the CD-ROM The Six Modules Mission of the Organization 2. Revolutionary Idea 3. Market and Marketing Plan 4. Design Team and Implementation 5. Financial Requirements 6. Projected Social Return
11 Elements of each Module... Introduction Learning Objectives Product Components Guided Surveys Homework Learning Aids Resources/Terms and Definitions
12 Introduction Objectives Products
13 Surveys Homework Worksheets
14 Learning Aids
15 Resources
16 Experience as a Partner for Latin America Change in Paradigm: from a project to a product/service
17 Change in Paradigm: from results packages to social return on investment
18 Change in Paradigm: from adapting existing activities to generating revolutionary ideas
19 Change in Paradigm: from traditional presentations to timely promotions to capture interest
20 Change in Paradigm: from a course to a program with technology
21 Innovative Ideas of PROCOSI APROSAR A manual that cross references traditional medicine to Western medical treatment protocols. Esperanza Established a training center where women can learn skills in a trade and take basic business courses. PROCOSI Business planning program delivered throughout the region. CIES Quality and training in reproductive health services for men.
22 Innovative Ideas of Nicasalud CEPRESI Established a Medical Center to offer primary health care to men in the community. PROVADENIC Reinforced their Training Center (CECAPRO) offering support services that increase the sustainability of services provided by PROVADENIC. PROMUJER Initiated training services that focus on gender in microcredit unions and other nongovernmental organizations in Nicaragua. NICASALUD Establised a Training Center that offers essential services to distinct organizations in Nicaragua. PROFAMILIA Expanded their community goal and services by establishing a medical firm.
23 Impact of the Program Transformation of attitude toward developing new businesses and related concepts Strengthened organizational teams Internal processes and methodical arrangement of improved information Application of new skills and concepts
24 Sustainability Model MSH Role: Developing Partners PROCOSI Role: Controlling the Model Client Role: Establishing Business Plans 2 sources of investment Creating a Doorway 3 sources of investment Improving the Program
25 Sustainability Model MSH Role: Developing Partners PROCOSI Role: Investment: 450k Controlling the Model Client Role: Establishing Business Plans Return: 385K On financing Creating a Doorway Improving the Program
26 Current Demand...
27 Potential Investors GlobalGiving.com EngenderHealth Embassy of the Netherlands Embassy of Belgium Embassy of Spain Embassy of Italy L&M Nicaragua/AWARE
28 Disease Reduction through Improved Sanitation Amongst the most impoverished of Bolivia's cities is El Alto. El Alto has a population of 590,000 inhabitants, and is home to an increasing population of migrants that arrive from rural areas. According to the data of the last census, 73% of the families residing in El Alto live below the poverty line. The degree of environmental deterioration in El Alto is very advanced due to the lack of the education of the population, the absence of basic services and infrastructure, and the environmental contamination from the factories in residential zones. Only 29% of the population has access to an installed sewage system, and 66% has access to potable water. Moreover, 80% of the population does not even have trash removal. Indeed, El Alto produces 160 tons of garbage a day and can only collect 100 tons. Therefore, the remaining 60 tons are scattered in the streets, where the children play on top of garbage heaps. This problem needs to be tackled by the community itself. It is precisely with this idea in mind that Project Concern International (PCI) proposes to form a Youth Ecological Movement that works to improve its surroundings, while mobilizing their community with messages that convey the need for residents to take responsibility for their garbage problem. According to the Census 2001, El Alto is one of the cities with the greatest concentration of young people. It is also known that the young people of the city are also faced with a series of problems related to the alcohol, drugs and gangs. And when there are no activities that support a healthy and constructive development of young people, they tend to dedicate their time to less constructive activities, like those mentioned previously. This impetus behind the formation of the Youth Ecological Movement stems, not only from the need to promote a youthful leadership in the city of El Alto, but also from the immediate urgency to generate a mindset of co-responsibility with the environment.
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