It sounds like a silly question if you’ve already started your business, but is it?
I have two clients who have reconsidered the business model they are using recently.
Social Enterprise or Sole Trader?
The first thought that what they wanted was a social enterprise or community interest company. They have a name, have a website and are promoting their business on social media but … they haven’t formally confirmed their business model.
After several conversations with them, it struck me that what they are saying doesn’t really reflect the ideals of a social enterprise. Or at least, one of them isn’t on that page; the other one is I think.
It turns out that working as individuals on a self-employed, sole trader business is more what they had in mind.
It’s been quite an interesting experience watching the conversation evolve but better to know now, than further down the line.
Limited Company or Social Enterprise?
The other client has already set up a limited company with a business partner. Again, lots of conversations about the business and what they want to achieve led me to think that this isn’t the right model for them.
When you understand what it is they are wanting to do, it is very obvious that a social enterprise is a much better option. By changing from a limited company to a social enterprise or community interest company, they will be able to help more people and give back to the community which is exactly what they want to do.
Interestingly, they had never heard of a CIC as an option so not something that they had ever considered. Now that they know it’s an option, it’s opened their eyes to the possibilities of collaborations with other community groups, funding opportunities and a far better business which is very community based.
Do you have the right business model is not such a silly question after all!
If you’d like to discuss your business, please get in touch