Index

accounting systems, 66–67, 72, 76–77, 114, 131, 132. See also financial health creation advertising goals, 3

advice, giving/taking, 24–26

Anderson, Joy, 50

aspiration as motivation, 91–92, 154

Aubry, Rick, 12, 18–19, 26, 102, 146–147

Bainbridge Graduate Institute, 90

banks, working with, 74–75

B corporation designation, 50

Benetech, 13, 51, 133, 173

Ben & Jerry’s, 59, 116–117

Berenbach, Shari, 12, 29, 76–77

Blackwell, Scott, 12, 109

blood equity, 23, 157–158. See also self-care Bromberger, Allen, 12, 43, 45–47

business plan elements, 55–59

business sector enterprises, 41–42

Calvert Foundation, 12, 133–134, 173

capital, 43, 44, 48, 49, 74–75, 80

caring for yourself. See self-care cash management, 68–69, 70, 79

cash-on-hand calculation, 78

cause marketing, 99–101

CICERO system, 134

Cohen, Ben, 59

Coleman, Paige, 173

common good, 4–9, 40–42, 95, 113–114, 125

Community Wealth Ventures, 15, 173

Conley, Chip, 111

connections, creating, 107–111

corporations, 44, 45, 50

costs, fixed/variable, 71–72

culture of organization, 153–154, 166–167

customers, 36, 103, 106–107, 149

debits versus credits, 23.

See also financial health creation debt, 44, 48

decision making, 34, 42–48, 93, 152–153

do-good enterprises, 37

do-gooders versus good doers, 23. See also hiring the best people doing good versus doing well, 22.

See also impact/profit balance employees, 90–91. See also hiring the best people The Enterprising Kitchen, 14, 34, 108, 173

Environmental Management

Institute, 42

equity (fund balance) and expenses, 67

Evergreen Lodge, 15, 49, 111–112, 173

expansion. See growth and expansion failure, 11, 19–21, 53

feedback, 167

financial health creation counting money, 66–67

developing financial literacy, 65

getting good at money, 80

making money versus making sales, 71–72

making versus having money, 68–70

measuring results (See metrics) money model, 67–68

spending money, 72–73

talking about money, 73–75

watching the money, 75–79

financial literacy, 65

5S concept, 122, 124–125

501c(3) designation, 51

focus, 24, 147

form/structure

choice of, 40–42, 51–53

as determiner of function, 51–52

finance and, 49–51

versus function, 23, 48

implications of, 51–52

issues affected by, 42–43

legal, 44–47

Strategic Implications of Social Enterprise Forms, 45–47

structural, 51–53

formula for building social enterprises, 21

for-profit organizations, 39, 45–47, 48, 130

Freundlich, Tim, 50

Friedenwald-Fishman, Eric, 111

Fruchterman, Jim, 13, 51

frugal mind-set, 73

fund balance (equity), 67

Gair, Cynthia, 13, 130, 135

Give Something Back, 13, 42, 74–75, 84–85, 103–104, 132, 173

Glasier, Linda, 173

Glassman, Bernie, 59

Good Capital, 13, 50, 173

Goodwill Industries, 42

governance issues, 45, 48

Greyston Bakery, 10, 11, 33, 36, 59–60, 68, 90, 94, 102, 110–111, 116–118, 134, 144, 145, 151, 168, 173

growth and expansion

choosing a form for fueling, 51

ingredients for, 149–155

mission creep’s effect on, 146–147

routes of expansion, 142–146

in social enterprise context, 141–144

too much, 147–149

growth versus focus, 24

Guayaki Yerba Mate, 14, 90, 95, 108, 133, 173

guiding principles, 31–34

Hammond, Darell, 13, 85–86, 96, 104–105, 108, 110, 127–128, 137

Hannigan, Mike, 13, 74–75, 84–85, 103–104, 105

hiring the best people

aspiration as motivation, 91–92

competition for, 81–84

giving a say, 93

giving voice, 93–94

offering deals, 90–91

ritual, 94–95

salary/compensation, 35–36, 84–90

talent, 95–97

Hollender, Jeffrey, 13, 26–27, 35, 83–84

honesty, intellectual, 18

humility, 170

Immaculate Baking Company, 12, 109, 173

impact/profit balance

guiding principles, 31–33

measuring, 131

mission leverage, 35–38

mission versus margin, 29–30

practicalities of, 33–34

income taxes, Unrelated Business Income Tax (UBIT), 45

indicators of financial status, 77–78

Indigenous Designs, 14, 148, 173

innovations, financing, 50

invested capital, 44, 48

investors, 44, 49, 50–51

Javits, Carla, 13

joint ventures, 47

Jones, Daniel T., 115

Jones, Kevin, 13, 50, 100

KaBOOM!, 13, 85–86, 96, 104– 105, 108, 110, 127–128, 133, 137, 173

Kaizen process, 122, 123–124

The Kaleel Jamison Consulting Group, 14, 91, 173

Kelly, Marjorie, 3–4, 114

Korten, David, 2, 114

L3C designation, 50

Lakein, Alan, 53

leadership discipline, 155, 165

Lean manufacturing, 82

5S concept, 124–125

elements of, 115–120

Kaizen process, 123–124

lean social enterprise, 125–128

tools for, 120–122

value-stream mapping, 122–123

legal structure, 39, 44–47, 46–47

Lennon, John, 60

Leonard, Scott, 14, 148

leveraging mission and margin, 37

limited liability companies

(LLCs), 44, 46–47

Lynch, Kevin, x–xiv, 10, 63, 89, 95, 102, 108, 145–146

Mal Warwick Associates, 14, 173

management philosophy, 165–166

Mander, Jerry, 2–3, 4

Mann, Chris, 14, 90, 95

margin-versus-mission, 29–30, 37, 38

Marino, Robert, 173

marketing strategies

being good, 102–105

cause marketing, 99–101

creating connection, 107–111

living and dying by marketing, 111–112

mission advantage in, 106–107

Markula Center for Applied

Ethics, 7–8

Marx, Sean, 74–75

McDonald, Kevin, 14, 24–25, 72–73, 91, 97, 135, 161

metrics building in, 138–139

versus instinct, 23–24

outputs to outcomes, 136–138

reasons for using, 130–136

in social enterprise, 129–130

Miller, Clara, 14, 52, 79, 143

Miller, Frederick A., 14, 91–92, 96

mind-sets, 73, 152

mission

advantage in marketing strategies, 106–107

criteria for, 146–147

impact/profit balance, 35–38

versus margin, 29–30

staying true to, 112

telling customers about the, 36–37

mission creep, 146–147

mission-driven organizations, 96–97, 104–105

mission leverage, 35, 37

mission-versus-margin trade-off, 29–30, 37, 38

mistakes, learning from, 162–163

money. See. financial health creation

money model, 67–68

motivation, 35–36, 91–92

The Nature Company, 148

need-inventing market system, 2–3

Newman’s Own, 42

nongovernmental organizations, 41

Nonprofit Finance Fund, 14, 173

nonprofit organizations, 39, 41, 44–45, 48, 79, 130

non-social enterprises (NSEs), 40–41, 84, 113–115, 129

O’Brien, Michael, 173

outputs to outcomes, 136–138

Pacioli, Luca, 66–67

paradoxes of social enterprise, 17–19, 22–24, 29–30

pay scales, 84–90

perception versus reality, 23. See also marketing strategies

Perlman & Perlman, 12, 173

Pikas, Joan, 14, 148

planning model, 63

planning versus practice, 23

adjusting plans, 59–64

coordination of plans, 61–62

need for good plans, 53–54

planning for setbacks, 161

skills for planning well, 54–59

tension between, 53

poverty mind-set, 73, 152

power of business, 1–4

practice of social enterprise, 17

practitioner’s formula, 21

practitioners of social enterprise, 9–15

pricing principles, 71–72

profit/profitability, 48, 52, 114. See also for-profit organizations; nonprofit organizations reasonable compensation rule, 45

Rebuild Resources, x–xiv, 10, 59–60, 63, 67, 89, 93, 94, 103, 108, 110, 121, 122, 125–126, 145, 168, 173

REDF (Roberts Enterprise

Development Fund), 13, 130–131, 135, 173

reports, accounting, 77–78

revenue, 67

risk factors, 26–27

ritual in practice, 94–95, 154

Roos, Daniel, 115

Rubicon Programs, 12, 18–19, 25–26, 42, 134, 146–147, 173

sales, 71–72

say, giving employees, 93, 154

Schorr, Jim, 18

Schwab Foundation for Social

Enterprise, 159

self-care

blood equity concept, 157–158

tips for, 160–170

traits of social entrepreneurs, 159–160

Seventh Generation, 13, 26–27, 132–133, 173

shareholders, 3–4, 45–46

Share Our Strength, 15

ShoreBank, 42

Social Enterprise Alliance, 12

social enterprises, 5–9, 40, 41, 130–131, 173–174

social entrepreneurs, traits of, 159–160

socially inefficient markets, 114

socially responsible businesses, 41

social purpose, definition, 7

social sector enterprises, 41–42

social service delivery, 49

Social Venture Network (SVN), 12, 59

stakeholders, 3–4, 106–107

strategic planning, 63

structure. See form/structure success, 21, 157–58.

See also metrics support, external, 48

sweat equity versus blood equity, 24, 157–158. See also self-care

Target Corporation, 129

tax issues, 45, 48

Three Cs, 163

Toyota Production System, 118

trade-offs, 29–30, 37, 38, 48

traditional businesses, 41, 113

traits of social entrepreneurs, 159–160

transparency, 48

TROSA, 14, 24–25, 72–73, 91, 133, 173

UBIT (Unrelated Business Income Tax), 45

value, 23, 103, 117–118.

See also Lean manufacturing values, 135

value-stream mapping, 122–123

voice, giving employees, 93–94

Walls, Julius, Jr., xv–xix, 10, 36, 102, 168

Wal-Mart, 26–27

Warwick, Mal, 14, 41–42.

See also Mal Warwick Associates waste elimination, 116. See also Lean manufacturing White Dog Cafe, 15, 106–107, 109–110, 167–168, 173

Wicks, Judy, 15, 106–107, 109–110, 167–168

Wise, Alfred, 15, 89

Womack, James P., 115

Working Assets, 42

Zimmerman, Lee, 15, 49, 111–112