Synonymous with social enterprises, community-run businesses are operated by the community for the community.
There are many models that communities come together to operate including pubs, shops, stores, services, and alike. The main difference between community business and other forms of business is profit sharing. The profits generated by community business are used for the development of the community.
If you have a business idea and wish to set it up on a community-based model, here’s all that you need to know.
- Identify the problem before you tackle
The very first step is to identify the problems that your business idea intends to solve. Every community-based business is dedicated to helping out the community. If a business does not solve any problem, most likely, sooner or later, the business may seize to exist. Having clear data to assess the future prospects of your business idea can prove to be helpful in this matter.
- Gather information
Once you have decided on the area of operation for your business, your next step is to get it registered. Consult with your friends, your community members, and the officials. Ask them how much should the setup cost and at what price should you sell your product or service. Seek their help to analyze the opportunities that your business has.
- You need funds to successfully run the business
A major factor that can turn your venture upside down is the capital you hold. You need funds for your business. And surprisingly there are many methods to do so. One of the most common methods to seek funds is to organize a fundraising event. Carol Weisman from BoardBuilders.com says that when fundraising, it is important to make sure any special events you hold are worth the time and money. After all, your main prospective is to gather funds for your business.
- Be open to collaborations and partnerships
Partnerships are good for any business. Partners can provide valuable inputs, both in terms of suggestions and investments. Do not limit yourself to selective collaborations. Running a community business is all about breaking the barriers and reaching beyond them. The more versatility you acquire in your collaborations, the better are your chances of growing your business’s reach.
- In the end its the value you provide
Nevertheless, businesses cannot survive if they fail to provide their customers with value. The ultimate goal is to cater to the consumers’ needs. After all, without customers, there’s no point in commercial exchange for any business. That is why refining your value proposition is very important. Tell your customers about your business, and how you intend to give back to the community through your business. According to research, social cause acts as a more effective signal for lead conversion, than any other factor.
Community-based business is all about community. As already mentioned, it is operated by the community for the community, the main objective behind community business is not generating profits but generating value and giving back to the community. And there is nothing more fulfilling than the feeling of helping out a community and giving back for the greater good.