Chapter 9

Business Model

At its most basic, a business model should define what value your venture creates as well as how the venture gets money (income), spends money (expenses) to create that value, and captures a sufficient surplus to sustain venture viability and growth. Essentially, the business model for a social business describes the financing of your theory of change. It helps focus the organization on the effectiveness of key processes used to create value. It also focuses decision making on the importance of managing the cash or working capital needed to sustain business operations. Finally, the business model is critically important in raising funds for your organization.

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